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Wine Category at Risk of Being Overtaken by Distilled Spirits in Total Volume, According to the 2025 Wine Handbook

Wine Category at Risk of Being Overtaken by Distilled Spirits in Total Volume, According to the 2025 Wine Handbook

Minneapolis, Minn., (August 12, 2025) — For nearly two decades, the wine industry had been on a solid growth trajectory. Although the pace had decelerated since 2004, wine achieved average growth levels of 2.6% through 2016. But, as consumers increasingly drank more spirits and switched between beverage alcohol categories, wine began to trend downward. Growth rebounded in 2021, the only year the category experienced recent increases, driven by pandemic trends—consumers stocking at home during the shutdowns and the on-premise re-stocking inventories post-restrictions.

In 2024, wine posted its largest decline (-4.3%) of volume consumption in its recent history, ending the year at 326.8 million 9-liter cases. This also marked the third consecutive year of loss for total wine. For perspective, consumption levels in 2024 mirrored case volumes for 2013. At its peak, total wine was at 355.9 million 9-liter cases in 2021. Since then,  the wine category has ceded 29.1 million 9-liter cases. Wine continues to face intense competition from the distilled spirits category, specifically tequila and ready-to-drink beverages, as well as from imported beer and flavored malt beverages.
 
Consequently, domestic and imported wines posted growth declines in 2024 versus 2023, at -4.2% and -4.6% respectively. Total domestic wine makes up over three quarters of category volume, while imports account for nearly a 24% share of the U.S. wine business.

Table wine has been trending downward each year since 2011, with 2024 being the highest decline (-4.4%) in its recent history. “Better for You” brands overall continue to be the only bright spot for table wine up 12.5% vs. 2023, with volume for many of the leading brands posting solid growth gains.

After 20 years of steady growth for the Champagne and sparkling wine category, we are now seeing continual declines. This downward trend started in 2022 with a slight decline that was exacerbated in 2024 by an overall decline of -5.6%. Growth for domestic sparkling wines continued to fall Y-O-Y at -8.8%. Imported Champagne and sparkling fared better than domestic, but also decreased -3.1% from 2023. Champagne had a very challenging 2024—as it was down -7.8%—since many of the leading brands posted volume consumption declines. 

Selling wine has become more challenging. Boomers, currently the primary market for wine, are drinking less overall. The wine industry had hoped that Millennials would become the generation to lead the industry into a new era of growth. However, these younger consumers have not yet shown signs that they are interested in having significant engagement with the category to the extent of the Boomer generation. 
     
Additionally, the growing interest in a year-round lifestyle that embraces health and wellness, and social moderation is having a notable impact on the wine industry. Other headwinds impacting the wine segment encompass economic factors and beverages with CBD and THC. Wine has also not established strong appeal with multicultural consumers, who are a growing percentage of the population.
    
The wine industry must make a collaborative effort to appeal to younger, more diversified consumers. If wine aims to take back share lost to spirits or beer, it must create wine-based consumption opportunities for consumers in both the on-premise and off-premise sectors. At present, the Beverage Information Group is projecting that the distilled spirits category will supersede the wine category in volume before 2027.

About the 2025 Wine Handbook
The Beverage Information Group’s 2025 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 here or by contacting Sherai Falcon at sfalcon@epgacceleration.com or 763-383-4400 ext. 4423.

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Marina Velez

Research Director, EPG Specialty Information

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