State of the Wine Industry Report 2022
Improved demand from premium consumers
Premium wine sales clocked in at 21% growth in 2021 and another strong year will follow, but at lower growth rates. This growth was supported by the reopening of small fine dining restaurants, the continuation of strong internet sales past the lockdown phase of the pandemic, the work from home trend and higher winery visitations.
Increased pressure put on producers
In the West, the impact of climate change will become a focal point of industry discussions and planning in 2022. With increasing impacts from drought, fire, low soil moisture and record low reservoir levels, there will be even more pressure put on producers to find solutions for impacted water supply.
Excessive markups reduce volume
The restaurant industry has been a bastion of consumer trial over the years, but excessive markups have reduced the volume of wine sold through on-premise, as prohibitive costs meet up with younger frugal consumers who drink across categories.