State of the US Wine Industry Report 2024
Key takeaways
01
Minor headwinds contributed to the mixed outcomes at premium wineries
Direct-to-consumer volume and value sales were lower in 2023 and tasting room visitation dropped for the second straight year. However, strong 2023 holiday sales should improve the outlook for both.
02
Consumer demand for the total wine category continues its decline
As reported over the last several years, fewer U.S. consumers have been drinking wine. Instead, they have selected alternatives such as RTDs, spirits, cannabis or have been abstaining all together.
03
There is an oversupply of planted vineyards given current sales volumes
Conditions are present for overproduction, which may lead to inventory excess, discounting and price reductions. Pressure starting from the grower will create inventory bulges and drive higher-than-needed inventory turns in 2024.
Sales growth of U.S. premium wineries
The premium wine business has been the bright spot in total wine category sales when wine demand under $12 turned negative, pulling the entire category down. Wine volume sales above $12 have remained positive.
Changes in tasting room visitations and average order values
Visitation in tasting rooms experienced a decline during 2023, marking the second consecutive year of declining summer traffic.
Consumer drinking classifications by age band
There is a belief that consumers do not commit to wine until later in life. However, during their discovery years, alcohol consumers simply may not commit to any one category.
State of the US Wine Industry 2024
Watch our State of the US Wine Industry virtual event and explore the current climate, emerging trends and factors needed to thrive in the business.
Author and industry veteran Rob McMillan was joined by a lively panel of wine business leaders. The group discussed key findings, marketing strategies and offered predictions for the year ahead.
Explore previous wine reports
Written by SVB's Rob McMillan
As one of the US wine industry’s top business analysts, Rob assesses current market conditions and provides a unique trends forecast in his annual report.
