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Impact Databank: Wine’s Momentum Eases, But Is Projected To Add A Million Cases By 2020

October 9, 2018

The U.S. wine market is expected to continue its long-term growth streak in 2018, albeit at a sluggish 0.2% projected pace to reach 328.2 million 9-liter cases. This year will mark the industry’s 25th consecutive annual gain, according to the current edition of The U.S. Wine Market: Shanken’s Impact Databank Review & Forecast. In spite of the recent lackluster growth, total wine consumption volume has increased by over 80% over the past two decades, and the overall market is projected to add nearly 1 million cases more by 2020.

Sparkling wines are once again expected to outpace total industry growth this year, with a projected 3% gain to 21.6 million cases, marking their tenth consecutive annual increase. Sparklers will account for a 7% share of the overall wine market this year, an all-time high. In the off-premise, sparkling wines were up 8.3% by retail dollars in IRI channels for the year-to-date period ending September 9th, and gained 5.6% by case volume.

Imported sparkling wines continue to fuel growth, rising 4% to surpass 10 million cases for the first time last year, while domestic brands saw a 2% gain. Imports have been driven primarily by Prosecco, which is now 12 times larger in the U.S. than it was a decade ago. Just five years ago, the two largest-selling imported sparkling wine brands in the U.S. were Freixenet USA’s flagship Cava and Bacardi’s Martini & Rossi Asti. Today, the segment is dominated by La Marca Prosecco from E.&J. Gallo and Mionetto USA’s flagship label.

Meanwhile, Champagne brands Veuve Clicquot and Moët & Chandon lead the sparkling category in retail dollar terms, and have a combined 63% share of the U.S. market for Champagne by volume. Veuve Clicquot became the first Champagne brand ever to surpass 500,000 cases in the U.S., after a solid 7% advance last year. On the domestic side, Constellation’s Cook’s and Gallo’s Andre sparkling wine brands remain the segment’s largest sellers by volume, but Korbel continues to lead all domestic labels by retail dollars.

For more information and to order The U.S. Wine Market: Impact Databank Review & Forecast, 2018 Edition as well as other exclusive Shanken reports and publications, click here.—Juan Banaag

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