PUBLISHER: Grand View Research | PRODUCT CODE: 1790140
PUBLISHER: Grand View Research | PRODUCT CODE: 1790140
North America Wine Market Summary
The North America wine market size was estimated at USD 96.05 billion in 2024 and is expected to reach USD 187.03 billion by 2033, growing at a CAGR of 7.8% from 2025 to 2033. The wine market in North America, particularly in the U.S., Mexico, and Canada, is experiencing steady growth, driven by changing consumer preferences, premiumization trends, and evolving lifestyle habits.
One of the primary factors fueling the rise in wine consumption is the growing interest in premium and craft wines. Consumers, especially millennials and Gen Z, are increasingly seeking higher-quality, boutique wines with unique flavor profiles, sustainable sourcing, and authentic branding. This shift is also evident in the demand for organic, biodynamic, and natural wines, which align with broader health and environmental consciousness. There has been an increase in preference for sparkling wines. American wine preferences reflect a strong inclination toward smoother and fruitier wines, which suggests a widespread appreciation for balanced and approachable flavors. Semi-sweet and sweet wines also enjoy notable popularity, indicating a preference for wines with a touch of sweetness that appeal to a broad audience. Meanwhile, dry and savory wines maintain a steady following, likely catering to those who appreciate more structured and complex profiles. Tannic wines, which have a bold and intense character, appear to have a more niche appeal. These preferences highlight the diverse palates of American consumers and the evolving trends shaping the wine market.
Another key trend is premiumization-consumers are showing growing interest in high-quality, artisanal, organic, and sustainably produced wines. This shift is fueled by a more informed and curious consumer base that seeks unique flavor profiles, provenance, and craftsmanship. The millennial and Gen Z demographics, in particular, are influencing this change by exploring diverse wine options and favoring boutique brands, natural wines, and canned or low-alcohol variants for convenience and wellness reasons.
Gen Z, in particular, is reshaping the wine landscape. This younger generation is curious, experimental, and less bound by traditional wine norms. They prefer unconventional packaging like wine in cans or boxes, enjoy flavored and sparkling varieties, and show high interest in natural or orange wines. According to a Drizly 2024 survey, 36% of Gen Z wine drinkers reported trying different varietals and formats monthly, compared to 22% of millennials. Their openness to experimentation and demand for transparency are encouraging innovation in wine offerings.
The locally produced brands of wine also seem to be influencing consumer attitudes toward wine, with more Canadians now seeking high-quality domestic wine. Ontario's Niagara region remains the dominant source of Canadian wine. Additionally, the Okanagan Valley in British Columbia is highly regarded for the quality of its wine and the strength of its vineyard tourism offerings. Quebec is emerging as a new hotspot in the wine market as well.
As per the Mexican Wine Council (CMV), the average per capita consumption of wine doubled from 450 milliliters in 2012 to 960 milliliters in 2018. Annually, the value chain produces about 2.4 million boxes of wine, which is enough to meet 30% of domestic demand, as Mexicans consume an average of 9 million boxes of wine. Conventionally, younger or newer Mexican drinkers preferred to drink beer, mezcal, or cocktails rather than a glass of wine. However, with time, this tendency began to change because the wine industry itself was able to adapt to the demands of new palates.
Mexico is increasingly becoming popular in the wine market due to its delicious gastronomy, its tourism, and its wines. Currently, Mexico is a significant producer of wine and continues to grow in production capacity, and is even recognized internationally, especially for the wines of Baja California. These factors are foreseen to drive the demand for wine over the forecast period in North America.
Evolving consumer tastes and preferences play a significant role in shaping the North American wine industry. Consumers are increasingly seeking diverse and unique wine experiences, leading to a growing demand for a variety of wine styles, including organic, biodynamic, and sustainable options. The millennial demographic has a considerable impact on the wine market. This group tends to value authenticity, sustainability, and unique experiences, driving the demand for wines that align with these preferences. Millennial consumers often explore new and niche varietals, contributing to the diversification of the market.
However, the wine industry in the U.S. is facing a decline as consumers are drinking less and spending less on wine. Data shows that younger generations, particularly Millennials and Gen Z, are opting for alternatives like cocktails, spirits, and non-alcoholic beverages. This shift is contributing to slower sales growth and a decrease in wine consumption overall. Consumers are increasingly opting for wines that are organic, low in alcohol, or even alcohol-free. These products are perceived as better aligned with wellness-oriented lifestyles. According to IWSR (2023), sales of low- and no-alcohol wines in North America grew by over 20% year-over-year, showing a strong move toward moderation and mindful drinking.
This trend aligns with the broader decline in alcohol consumption among Americans, especially younger adults. Compared to two decades ago, a smaller share of young Americans report drinking alcohol, influenced by factors such as health consciousness, changing social norms, and the rise of low- and no-alcohol alternatives. This shift presents challenges for the wine industry as it struggles to attract younger consumers in an evolving beverage market.
Another factor is the increased competition from other beverage categories. Beer, ready-to-drink (RTD) cocktails, hard seltzers, and craft spirits have gained popularity due to their convenience, flavor variety, and targeted marketing campaigns. These products are often perceived as more fun, trendy, or suited to casual drinking occasions, especially among younger consumers. As a result, wine is sometimes viewed as less approachable, more formal, or even outdated, particularly among consumers who don't relate to traditional wine culture.
Economic pressures are also contributing to the decline. With inflation and rising costs of living, many consumers are cutting back on discretionary spending, including wine. Lower-income and price-sensitive consumers may turn to cheaper alcohol options or reduce overall alcohol consumption. In parallel, supply chain challenges and climate change have increased production costs, causing retail wine prices to rise and making premium wines less accessible.
North America Wine Market Report Segmentation
This report forecasts volume & revenue growth at the regional and country levels and provides an analysis of the latest trends and opportunities in each sub-segment from 2021 to 2033. For this study, Grand View Research has segmented the North America wine market report based on product, distribution channel, and country: