The total U.S. wine market increased to more than $72 billion in 2019, according to market research firm bw166, up nearly 4% from the previous year, while total case volume gained 1% to 409 million. The growth is steady, but it’s also underwhelming compared to the years of recovery immediately following the Great Recession of 2007-2009.
As 2019 comes to an end, the U.S. wine industry continues to struggle to clear its inventory of 2018 wine. This challenge has grown particularly acute in a lackluster bulk market. Private label brands offer some relief, but this sector is much more competitive than in previous years. The latest Wine Industry Metrics indicate premiumization continues as sales growth remains solid for higher-priced wines.
The wine industry is adopting new technologies to marshal the vast amount of data becoming more available to it. Wineries are seeking to integrate data from the vineyard all the way through to the point of sale to make better and more informed business decisions.
While the latest Wine Industry Metrics reveal positive sales growth in September, the U.S. wine industry is riven with concerns over flattening sales volume. Direct-to-consumer and online wine sales, however, appear poised to provide a foundation for future expansion.
The largest U.S. wine distributors strengthened their control of the wholesale market during the past year. Southern Glazer’s Wine & Spirits remained No. 1, and No. 2 Republic National Distributing Co. formed a partnership with No. 4 Young’s Market Co. Despite improved technology to support the logistics of distribution, even wholesalers face a challenging wine market that likely will get tougher because of declining sales volume and a serious over supply issue in California.
Total sales of wine in the U.S. topped $73 billion in the latest 12 months, and the country remains the world’s single biggest market for wine. But growth has been flattening, a phenomenon not unusual as the base for change increases. While this should be the sign of a stable market, it’s been a cause of angst after years of strong growth following the Great Recession.
Glass remained the top packaging choice for wineries over the past year, but a desire for convenience and smaller formats underpinned sales growth. At the top of the bottle, cork also remains dominate but is facing stiffer competition from screwcaps and technical closures.
Global wine production stabilized in 2018 after Spain, Italy and France recorded normal harvests following the challenging 2017 vintage. The three European nations are the world’s leading wine exporters and account for the most imports, by value and volume, to the U.S., which remains the world’s largest wine market. Ongoing trade disputes have undermined the growth of U.S. exports in both established and new foreign markets.
A record 2018 wine grape harvest of 4.28 million tons has changed the landscape of the U.S. wine industry. Concerns over flagging wine sales at lower price points have been exacerbated by what many describe as a glut in the grape and wine market. As supply and demand come to balance on a new pivot point, there will be plentiful supply to innovate with new brands or private labels. And despite concerns about wine sales, the latest Wine Industry Metrics show steady, positive growth.