State Of The Wine Industry 2019 Highlights
by CWA
@ 18 Jan 2019
The wine industry has seen a steady increase of consumers over the years. According to the ‘State of the Wine Industry 2019’ report, more than 70% of wine sold by volume and 46% was below US$9 retail.
The report predicts that the premium wine segment (Above $10 a bottle) will grow in the range of 4 to 8 percent in 2019, roughly flat from the 2018 sales growth estimate. For the off-premise retail store channel, dollar sales will grow between 0.5 percent and 2.5 percent, while volume sales will grow between negative 0.5 percent and positive 1.5 percent. Both volume and dollar sales growth will end lower in 2018. Overall retail pricing should be flat for premium wine as the industry works through sluggish volume growth and a slight surplus of wine.
The report also states that baby boomers are showing longer-than-expected buying strength and still hold the largest market share of wine consumption as baby boomers still hold 40% of U.S. winery sales. Baby boomers, who still lead in total wine purchases, are moving into retirement, adjusting to living on a fixed income and declining in both their numbers and per capita consumption.
The report also found out that millennials also tend to prefer craft beer, craft spirits and cannabis - but have the lowest share among the cohorts for wine. This could be due to damaged financial capacity, but cannabis legalization and a cumulative negative health message surrounding alcohol have combined to temporarily to stall the growth and adoption of wine among young consumers.
To understand the wine industry further, the ‘State of the Wine Industry 2019’ report is suitable and its valuable insight could prove helpful to wine enthusiasts.View it
here.
