Minneapolis, Minn., (August 8, 2023) — The Wine industry had been on an upward growth trajectory since 1997, averaging growth levels of 2.5% through 2018. However, volume remained mostly flat since 2018. Growth rebounded in 2021, particularly as the on-premise returned and bars and restaurants re-stocked their inventory.
Total wine contracted -2.1% in 2022 to 348.4 million 9-liter cases as volume consumption returned to normal pre-pandemic levels. Selling wine has become more challenging as Baby Boomers are drinking less overall and Millennials are increasingly turning to spirits, ready-to-drink cocktails, hard seltzers, and non-alcoholic beverages. Additionally, the growing interest in a year-round lifestyle that embraces health and wellness, and social moderation is having an impact on the wine industry.
Table wine comprises 88.7% share of the wine category 9-liter case volume, Champagne & Sparkling delivers another 7.6% which is consistent with the prior year. Domestic wines make up three-quarters of category volume and over 264 million 9-liter cases. Imports deliver 24%, or 83.5 million cases to the U.S. wine business. Domestic and import wines posted growth declines versus 2021, at -1.3% and -4.5% respectively.
Overall, wine faced headwinds in 2022 that contributed to volume declines. Supply chain challenges and a shortage of employees made it more difficult to make and sell wine. Wineries on the west coast continued to face the growing effects of climate change and severe weather impacting grape volumes at harvest. While the total wine category contracted in 2022 there were segments of the business that benefited—specifically, premium wines.
The Table wine category had consistently posted volume growth to some degree from 1997 through 2018 but had significantly decelerated in the last six years due to the significant rise in consumer interest and consumption of Champagne & Sparkling wine, particularly from the Prosecco segment. In 2022, table wine lost all the wine growth increases from the past few years as volume slid driven by a -2.5% decrease, which was its steepest growth decline to date.
The Champagne and Sparkling category has been on an upward growth trajectory for twenty consecutive years since 2002 and has been the key driver of growth in the overall wine category. Sparkling wine has finally come into its own as a beverage that transcends celebratory occasions due to an increasing eagerness among wine drinkers to venture into various styles, regions, and varieties, such as specialty cuvées. The return of the on-premise had also helped drive momentum within the Sparkling category. However, in 2022, the Champagne and Sparkling segment experienced a slight decline of -0.6% to 26,549 million 9-liter cases. Category share remained consistent to 2021 at 7.6%, with imports at 4.2% share and domestics share at 3.4%. Nonetheless, 2022 was another record year for imports in value terms, surging 19% to $998 million, according to Comité Champagne, a trade organization for the industry.
About the 2023 Wine Handbook
The Beverage Information Group’s 2023 Wine Handbook is the most 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.
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