Minneapolis, Minn., (August 9, 2024) — The Wine industry was on an upward growth trajectory since 1997, averaging growth levels of over 2% through 2018, although at a decelerating pace since 2004. Over the same period, the growing Spirits category saw consumers drinking more Ready-to-Drink cocktails, Tequila, and Straight Whiskey. In the Beer category, Hard Seltzer growth stalled, while Mexican imports continued their long-term growth trend.
As consumers increasingly switched between categories, Wine volume has remained largely flat since 2018. The little growth there was stalled in 2019 but rebounded in 2021, particularly as the on-premise sector returned once Covid-19 was being effectively managed. Total wine contracted in 2022 by -1.0% as volume consumption returned to normal pre-pandemic levels. In 2023, total Wine volume consumption decreased -3.1%, marking the second consecutive year of loss. This negative downtrend is expected to continue into 2024. By contrast, the Distilled Spirits category has averaged a growth rate of 3.6% in the same time span and is expected to continue achieving growth for the foreseeable future. At this pace, the Spirits category will likely surpass the Wine market within the next five years.
The headwinds facing the Wine industry are very real and well documented, from the ever-increasing competition with Distilled Spirits and cocktails to the barrage of Ready-to-Drink alcoholic beverages flooding the market. It doesn't help that many people are drinking less overall these days, nor that wine is not connecting with younger and multicultural consumers as well as other categories have.
Over the last 25 years, Table Wine consistently posted volume gains until 2019, then rebounded slightly after the pandemic with small gains in 2020 & 2021. For 2022, it marked a downward trend, with volume down -1.8%. In 2023, table wine accelerated a downward trend, losing -3.5% of its volume consumption, ending the year slightly above 2015’s volume. “Better for You” brands were a bright spot for Table Wine, with the leading brands volume up 7.4% vs. 2022.
The Champagne and Sparkling Wine category experienced consistent growth for twenty consecutive years since 2002, fueling the overall Wine category’s expansion. However, 2022 saw a slowdown, and 2023 further decelerated with a -2.7% overall decline. Prosecco continued its growth trajectory, while Champagne experienced a significant volume drop. The message of making every day a celebration remained, but consumers may have shifted towards more affordable options. Champagne was down over 12%, with only two of its 11 brands showing a volume improvement vs. 2022.
About the 2024 Wine Handbook
The Beverage Information Group’s 2024 Wine Handbook is a comprehensive source of information on U.S. wine and sales trends. It includes consumption and projection information by category and by market, tracks leading brands, and reports historical data.
You may order this publication at www.epgspecialtyinformation.com or by contacting Sherai Falcon at sfalcon@epgmediallc.com or 763-383-4400 ext. 4423.
