United States Wine Market - Growth, Trends, and Forecasts (2023 - 2028)

The US wine market is anticipated to witness a CAGR of 1.47% over the forecast period. The US wine market is the largest of its kind in the world due to its high population, backed up by high disposable incomes. Moreover, wines have been popular in the country for centuries, and the local market has been growing with the migration of people from vivid cultural backgrounds who are introducing new flavors to the market.

Key Highlights

• According to the United States Department of Commerce, wine sales in the United States increased in 2021 as compared to the previous. The wine sales were 435.1 million 9-liter cases in 2020, whereas the sales amounted to approximately 450.6 million 9-liter cases in 2021. Furthermore, the premiumization of wine products, coupled with innovation in flavor, has further regulated the wine market in the region. The increase in the demand for wine in the US market has been creating lucrative opportunities for various players in the market.
• Another emerging trend in the market segment includes the demand for organic wine, which currently represents a small portion of the overall wine market; its production and consumption have grown recently as a result of growing consumer interest in health and wellness. Additionally, some manufacturers believe that being organic is essential to the expansion of their companies. Owing to the above factors, the players have been expanding their reach across the region and using various strategies to penetrate the market further.
• For instance, in September 2022, Invivo X, Sarah Jessica Parker's wine brand SJP expanded in the United States Market, and the Sauvignon Blanc was claimed to be offered at 1,173 Kroger stores across the region. Through its physical shops and website, Kroger claims to be serving more than 11 million people every day. However, as United States consumers are readily opting for nutrition-packed beverages, the wine market in the country is likely to show a sluggish growth rate as the market has already reached its saturation.

US Wine Market Trends

Extensive Vineyard Area Anticipated to Strengthen the Market

• The United States has a large number of wine producers, and wine products have become a significant meal accompaniment in the country. The innovation in terms of flavor, color, and packaging customizations has led to increased sales of wines across the country. Nevertheless, to satiate the high demand, considerable land area has been converted into vineyards to cater to the need for grapes that would be highly priced if sourced from outside the United States.
• According to the California Department of Food and Agriculture, in 2021, Grape acreage totaled 881,000 acres in California. The total grape cultivation for the production of wine accounted for 615,000 acres, while the table-type grape acreage totaled 128,000 acres. The total acreage of raisin-type grapes was 138,000 acres. The manufacturers, thus, procure grapes in bulk from these vineyards to produce wines at lower prices and fulfill the demand for locally produced wines. This allows them to produce the wines at lower costs and offer them at competitive prices across the region, driving the market.

Growing Demand for Imported Wine in the Country

• European countries, especially Italy, France, and Spain, have been major producers of wines for centuries due to the abundant availability of grapes for wine production and the increasing demand for their wines globally. The United States has been extensively importing premium wines from countries across the globe to fulfill demand, despite being a major ground for innumerable wine manufacturers. Thus, the continuous growth in the import of high-quality wines into the country is expected to cater to the strong consumer base and drive the country's wine market shortly.
• According to the UN Comtrade, the United States' sparkling wine imports increased from USD 1,304.72 million in 2020 to USD 1,910.5 million in 2021. Nonetheless, innovations in wine products and various flavors are likely to provide lucrative opportunities for the imported wine market in the United States. Top wine importers in the United States are Southern Wine and Spirits, Southern Glazers, Fredrick Wildman and Sons, Charmer Sunbelt Group, Youngs Market Company, Vine Street Imports, Wirtz Beverages, etc.

US Wine Market Competitor Analysis

The US wine market is competitive, with the presence of several global as well as domestic players. The major strategies used by players to grow their market share include launching innovative solutions amid the complex market situation to cater to the transforming consumption pattern of the local population. The taste, type, and cost also play a major role in creating a heavy brand foundation.

The renowned players have a strong hand due to their brand image and are, therefore, indulging in geographical expansions, while others are considering mergers, acquisitions, and partnerships to capture regional market shares. The top players in the United States wine market include The Wine Group, Diageo PLC, Bacardi Limited, Constellation Brands Inc., and E. & J. Gallo Winery.

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