U.S. Wine Industry Overview
The U.S. wine market size was valued at USD 63.69 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2022 to 2030.
Wine consumption has become a sign of social status, especially among the millennials and young generation, which is driving the market. Wine sales have surged across the U.S. owing to innovation in flavor, color, and packaging of the product. Furthermore, the continued importation of high-quality wines into the U.S. is likely to sustain a solid customer base and propel market growth in the near future. The emergence of COVID-19 triggered a worldwide catastrophe, on a scale never seen before. Aside from endangering human health and life, the pandemic had a significant detrimental influence on companies all around the world. However, not all industries have been equally affected. While the great majority of on-premises stores were required to close during the start of the pandemic, the off-trade wine business in the U.S. has enjoyed good sales. The COVID-19 pandemic has led many people to use e-commerce for day-to-day operations as well as for ordering alcohol, thus driving the off-trade distribution channel segment.
Gather more insights about the market drivers, restrains and growth of the U.S. Wine Market
Many manufacturers prefer to purchase grapes in large quantities from local vineyards for wine production to create a product at a reduced price. Further, locally made wine has also been gaining traction in the U.S. owing to consumer demand for organic and natural products. Though organic wine is still a niche segment in the overall wine category, its production and consumption have increased in recent years due to rising consumer awareness regarding health and wellness. Further, some manufacturers think that organic is a necessity for their business growth.
Mergers, acquisitions, and consolidation have been occurring among wineries worldwide. For instance, in September 2021, Justin Vineyards Winery announced that it has acquired Lewis Cellars. It makes around 9,000 cases of wine per year and is known for high-end wines such as Cabernet Sauvignon, Syrah, Merlot, Sauvignon Blanc, and Chardonnay. According to National Wine Spirits, Inc., regarding distribution, the 20 largest wholesalers control 70% of the U.S. distribution. Large distributors enjoy economies of scale and can pass some of their lower costs to the retailers, thus increasing the total efficiency of the supply chain.
Companies are increasingly focusing on producing new products to gain market share in the world. For instance, in May 2020, E. J. Gallo Winery announced the launch of Maison No.9, a new French rosé, created and developed by Post Malone, a Grammy-nominated record artist, in partnership with Global Brand Equities and Dre London. E. J. Gallo Company has exclusive distribution and sales support for the brand. Maison No. 9 has been made available in shops and online since June and will be sold exclusively by E. J. Gallo Winery. Gallo offers a world-class distribution network as well as sales skills for one of the most diversified portfolios of wines and spirits, ranging from category leaders to boutique luxury bottlings.
The increasing production of wine, supported by the growing cultivation of grapes, can prove to be harmful to the environment owing to its questionable sustainability. The environmental impact of production is a global cause for concern as most vineyards are monocultures that rely significantly on preventive spraying of herbicides, fungicides, and pesticides to keep disease and pests at bay. The widespread spraying of pesticides has been diminishing insect and bird populations, while the intensive use of herbicides and fungicides contaminates groundwater and degrades the soil, making it even more dependent on fertilizers. This could restrain the market growth.
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U.S. Wine Market Segmentation
Grand View Research has segmented the U.S. wine market based on product and distribution channel:
- U.S. Wine Product Outlook (Revenue, USD Million, 2017 - 2030)
- Table Wine
- Dessert Wine
- Sparkling Wine
- U.S. Wine Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)
- On-trade
- Off-trade
Key Companies profiled:
Some prominent players in the global U.S. Wine market include
- E. J. Gallo Winery
- Pernod Ricard
- Deutsch Family Wine Spirits
- Trinchero Family Estates
- Constellation Brands, Inc.
- Accolade Wine
- Bronco Wine Company
- Castel Frères
- The Wine Group
- Casella Family Brands
Order a free sample PDF of the U.S. Wine Market Intelligence Study, published by Grand View Research.
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