Feb. 4, 2020
You probably already know it because you’ve seen it played out week after week in your own business, but now there’s hard data to back it up: U.S. consumers love wine, and they’re buying more of it every year. This month saw the release of a market forecast report by the data experts at Freedonia Focus Reports released a new report, Wine: United States, which details how the overall demand for wine in the United States is set to increase one percent in total volume each year through 2024.
Data Aged to Perfection
The report uses historical trend data from 2009 to 2019 to track total demand, production, trade, and other data points to predict the shape of the market in years to come, while also looking at current cultural trends and attitudes which may shape consumer behavior. According to the research, the market’s steady growth will be fueled by increases in disposable personal income coupled with an overall turn towards premium consumer products, such as wine.
The Impact of Millennials
The report also cites the demographic change as the last of the millennial generation reached legal drinking age and baby boomers started to age out of the market. Millennials, in the aggregate, tend to drink more wine than previous generations, whether it is personal in-home consumption, wine clubs, tastings, “sip-and-paint” art classes, and other recreational activities which are increasingly enjoyed with a glass of wine.
The Whole Package
In addition to population and income changes, the report credits single-serving wine, such as canned and boxed wines, with making casual consumption of wine easier and more appealing to younger LDA consumers. Meanwhile, traditional packaging and more premium wines will continue to be a draw for older, more affluent consumers.
The Last Drop
The forecast also indicates that the wine market will continue to see strong competition from the spirits segment, as cocktails continue to push into the RTD segment. As always, we will be here with useful tips on selling and updates on trends to help your business make the most of the market. Call us today to talk about how we can work together to make the most of this exciting news. Visit Freedonia Focus Reports for more information on the Wine: United States report.