State of the Wine Industry Report 2022
Key takeaways
01
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.
02
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.
03
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.
The data
21% growth is the most since 2007
Premium wine sales reach highs we have not seen in more than a decade, but the trend is concerning.
Wine has a 20% higher mindshare for the group aged 65+
In ten years as 65+ becomes 75+, they will be replaced with consumers who are not wine lovers.
Volume depletions started falling with reopening
With the wind at our back with reopening, wine volumes declined while spirits increased.
Most wineries will raise bottle prices in 2022, but price increases will be small
Inflation in labor and materials costs are pushing the need to raise prices.
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State of the Wine Industry 2022
The report findings were discussed in a live virtual event featuring Rob McMillan, EVP and founder, SVB Wine Division. Industry experts joining him included Amy Hoopes, Chief Strategy and Growth Officer, The Wine Group; Danny Brager, Owner, Brager Beverage Alcohol Consulting; and Paul Mabray, CEO, Pix.wine.
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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.
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