circa 1935: A group of males and females smile at the cam, raising and drinking their glasses of … [+]
Do Americans truly like wine quite? Were you to believe all the truth television shows it seems the only thing the “Genuine Housewives” of Beverly Hills, Atlanta and Miami do all the time is swig Champagne at al fresco lunches or poolside, as does everybody in “White Lotus.” (Obviously, you ‘d expect that in a fictional comedy like “Emily in Paris.”)
Depending on whose statistics you wish to believe, the US red wine industry looks favorably rosy: According to Research Study and Markets’ 2022 “U.S. Red Wine Market Size, Share & & Trends Analysis Report by Job,” sales of wine (domestic and imported) topped $66.97 billion, with table white wines controling, followed by champagnes (most domestic), whose projected sales will rise 7.7% from 2022 to 2030 and the U.S. red wine market size is expected to reach USD 115.03 billion by 2030.
The report credits the “rising around the world supply of grapes, increasing combination amongst manufacturers, suppliers, and sellers, and a shift in consumers’ drinking patterns are functioning as significant motorists for the marketplace.” Up until now so good.
But the just-released “State of the US Wine Industry 2023,” by Rob McMilan, EVP and Founder, Silicon Valley Bank Wine Department, finds some upsetting flies in the barrel, reporting a number of areas for issue in the market. For one, consumers older than 60 are the only development segment, while those under 60 have a lower share of consumption compared to what they performed in 2007, when projections were that Millennials, Gen-Xers and the rest would be consuming more white wines and much better white wines. This now appears to be reversed, with older white wine drinkers trading approximately more expensive red wines, a pattern call “premiumization.”
In the group of 21-29 year-olds, 35% beverage alcohol but not wine, while only 28% American consumers overall drink alcohol. Most of Americans never or rarely touch the things.
WINDSOR, CALIFORNIA – JANUARY 09: In a bird’s-eye view, a vineyard is immersed in floodwater after … [+]
What would seem great news enough to make vintners dance in their vineyards might not be so excellent after all: The heavy rains in California will likely lead to a much bigger than regular harvest this season, when there will not be enough customers wanting to buy all that increased supply. Three smaller sized vintages, owing to draught and other climatic conditions, prior to the rains were really advantageous in lowering volume produced.
The better news is that, according to the Silicon Valley Bank Peer Group Analysis Database, premium wines (above $15 a bottle) are rising, however red wine sold listed below $15 continues to slide, resulting in a second year of unfavorable volume growth in the market as an effect.
There is optimism that “the common consumers of premium white wine are resting on more than a trillion dollars in COVID savings. Our customers have the capability to use their savings and discretionary earnings to buy red wine even in a soft economy.” The question stays whether or not enough will spend those dollars on white wines, when inflation has actually made everything from butter to hamburger more expensive.Lin Tiangui, a representative of Winston Wine, shares a glass of white wine with Huang Yongqiang, a store … [+] manger , at one of its stores in Shanghai,
and Italy, where wine has actually been an ancient staple of the diet plan, is now shying away from white wine in favor of beer. 5, ten years from now, who knows? If the future doesn’t look all that rosy, there is one intense area: Sales of both still and shimmering rosé wines are soaring, now representing 9.3 percent of the total white wine classification. Svb White Wine Market Trends and Report 2023|Silicon Valley Bank