Current Report
Total US Wine Market
The U.S. wine market has bounced back from the disruptions of 2020, but a new year comes with ongoing pandemic challenges and a crowded and competitive beverage alcohol market.
Retail Wine Market
As another disrupted year comes to an end, the U.S. retail market has stabilized but looks very different than it did before the pandemic. The coming year is expected to bring price increases as wine brands face an intensifying fight for market share. In this month’s Industry Metrics, winery direct-to-consumer shipment volume saw an all-time monthly high of more than 1 million cases while the average bottle price of shipments also reached a record high point for November of more than $50.
Tech Trends: The Digital Crush
Technology and data took center stage during the pandemic as wineries sought ways to engage with customers virtually. But the fresh emphasis on digital platforms was really an acceleration of shifts already underway in how wineries operate. Within the Industry Metrics, an on-premise rally continues as DtC shipments and hiring also remain robust.
Direct-to-Consumer Wine Sales
Winery direct-to-consumer shipments are on pace to exceed $4 billion this year, while total U.S. sales rally back to pre-pandemic levels and winery hiring remains robust in a tight labor market.
Sample Report
Winery direct-to-consumer shipments are on pace to exceed $4 billion this year, while total U.S. sales rally back to pre-pandemic levels and winery hiring remains robust in a tight labor market.
Wholesale Wine Market
The top U.S. wine distributors maintained their dominant positions in the wholesale market, but one major acquisition did change up this year’s rankings by Wines Vines Analytics. Total direct-to-consumer shipment value was up 27% in August as sales of U.S. wines rose 10% and winery hiring remains robust.
Fighting and Innovating for Share
Overall consumer demand for wine remains largely flat as the US and world continue to struggle to put a definitive end to the ongoing pandemic. The few promising trends continue to be premiumization in retail off-premise and winery direct-to-consumer (DtC) shipment value rising even as the volume of wine shipped is on par with last year.
On-Premise Getting Back On Track
After a brutal 2020 in which restaurants and bars were forced to close and thousands had to permanently, the on-premise sector is slowly coming back to life. On-premise shutdowns compelled consumers and wineries to shift to retail, e-commerce and direct-to-consumer, and the wineries of Sonoma County have been a leader in growth in the channel that now accounts for a greater share of the total wine market.
Global Market, Consumption Slow
Total wine consumption continues to decline in a trend that predates the pandemic disruptions. Direct-to-consumer shipments were invaluable in 2020, and while May shipment value came in higher than last year this sector could see profound future changes unrelated to COVID-19.