Trends in the US Wine Industry for 2015 – Surging Forward with Renewed Optimism ($37.6 billion in 2014 revenues)

DSCF0893Even though wine consumption in the US has increased every year since 2000, some of those years were a bit bumpy due to the recession and a tendency for consumers to purchase value-priced wines. Now in 2015, the trend of buying more premium-priced wines has resurfaced, and there is a renewed optimism in the US, spurred on by the strengthening dollar and a more buoyant economy.

A review of the 2014 wine statistics and buying trends for 2015 are primarily positive. The only gray cloud on the US wine horizon may the growing popularity of craft beer and spirits. However if the wine industry continues to innovate and assists in promoting a larger market share for all adult beverages, then the positive growth trend can continue.

Sources for this posting are primarily from speakers at the 2015 Unified Wine Symposium as well as recent reports. See references at end for details.

Statistics for the US Wine Industry in 2014

  • Revenues for US Wine Sales = $37.6 billion (Wine Institute, 5/19/15); 1% increase from 2013
  • Total  cases shipped: 375 million (Frederickson,2015)
  • Percentage Imports = 31% (down from 34% in 2013; mainly from bulk)
  • Percentage from California = 60% ($24.6 billion in revenues, up 6.7% from 2013)
  • Percentage from Other States = 9%
  • US is the largest wine consuming nation since 2010 (Wine Institute, 2015)
  • 2014 is the 22nd consecutive year of grown for US wine sales

US Wineries & Consumption Rates

  • Number of US Wineries in 2014: 8287 (Gordon, 2015)
  • 5 Largest Wine Producing States: 1- California, 2- Washington, 3- Oregon, 4- New York, and 5- Virginia
  • Wine Consumption in the USUS Wine Consumption per Capita: 3.14 gallons (11.9 liters) in 2014 (Wine Market Council, 2015)
  • Percentage of US Adults who drink wine: 40%
  • Consumption Frequency: 33% drink wine several times per week and 67% drink wine occasionally

Channel Growth & Competition in 2014 

  • Off-Premise – more than 80% of wine in the US is still sold off-premise, with double digit growth in the $12-15; $15-20; $20 – 30; and over $30 categories (Brager, 2015). Still 75% of wine sold was under $9 per bottle (Frederickson, 2015)
  • Direct to Consumer Shipping (DTC/Ecommerce) – 3.95 million cases shipped at $1.82 billion in sales, a 15.5% increase from 2013 (ShipCompliant, 2015). Average bottle price $38. Wineries can now ship to 90% of US states.
  • On Premise Sales – slight increase in 2014 over previous years with wine value up 1.3%, but volume down 1.1% (Guest Metrics, Nov. 2014)
  • Competition – number of craft breweries and craft spirits have increased more than 50% since 2008 (Frederickson, 2015), creating intense competition for wine

Hot Wine Trends Now and for 2015

  • Trading Up – wine sales have increased in the $12 – 30 range and are expected to continue with the strong dollar, lower oil prices, and desire for more premium products
  • Sparkling wine is “hot” – up 7% in 2014, and will continue to grow, especially Prosecco. There is opportunity for new brands in the sparkling market.
  • Red Blends are still very popular, with brands like Apothic and Menage a Trois Red performing well. Opportunity for higher-priced red blends.
  • Most popular varietals will continue to grow: Cabernet Sauvignon, Chardonnay, Pinot Grigio, Pinot Noir and Sauvignon Blanc from New Zealand
  • 428047_4187596921499_1003172458_n (1)Oregon & Washington coming on strong, with more interest in wine from these states
  • Rose over $12 performed well this past year, and is expected to continue into 2015
  • “Eco” Wines slowly gaining more attention with 16% of US wine consumers now looking for these labels. Potential increases for sustainable, organic, and biodynamic wine as consumers grow more concerned about environmental issues.
  • Tetra Pak and 3 L Boxes selling well with continued growth in this area.
  • Wine Kegs in restaurants selling both value-priced and premium wine by the glass are gaining positive attention from consumers, with expected growth here.
  • Wine Apps are growing in popularity with up to 36% of US consumers using them to check prices and reviews before purchase
  • Wine Cocktails are stirring positive reactions with Millennials (Franson, 2015). This could be an opportunity to create a new trend of “wine mixology.”

References 

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13 Responses to Trends in the US Wine Industry for 2015 – Surging Forward with Renewed Optimism ($37.6 billion in 2014 revenues)

  1. Reblogged this on Westchester Wine Guy and commented:
    Some great insight to the overall wine market/industry for the US…

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  3. Susan says:

    Very useful information. Thank you.

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  9. egrandjean says:

    Hi Liz — thank you very much for writing this! It’s so comprehensive and insightful. I have a couple questions for you, with regard to the 16% of consumers looking for “eco” wines. Where does this statistic come from, and where might you recommend I look to learn more about this trend? If you happen to know what % of domestic wine sales are organic/biodynamic/etc., that would be incredibly helpful!

    • lizthach says:

      This statistic is from a research paper that was published several years ago. We did a survey of 321 American wine consumers and discovered that 16% of the sample were interested in purchasing “eco wines.” Obviously since this is a small sample, it cannot be completely generalized to all consumers.

      Olsen, J., Thach, E. & Hemphill, E. (2012). “The Impact of Environmental Protection and Hedonistic Values on Organic Wine Purchases in the US.” International Journal of Wine Business Research. Vol. 24 Iss: 1. p. 47-67

      • Sn9C6NgI says:

        Thank you so much, Liz! This is really helpful. Also, do you happen to know what share of wine sales in the US is attributed to organic wine?

      • lizthach says:

        Unfortunately there is no clear way to track this yet but they are working on it

        Warm regards, Dr. Liz Thach, MW Cell +1.707.792.2002 Using voice recognition software- apologies for typos

        >

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