Impact Databank: Wine Market To Rise Slightly By Value This Year
July 27, 2023American wine consumption is expected to lose volume in 2023 for the third straight year, while achieving a slight rise in value, as uncertain economic conditions and fierce competition from other drinks continue to put pressure on the industry, according to the 2023 edition of The U.S. Wine Market: Shanken’s Impact Databank Review & Forecast.
In fact, American spirits consumption is projected to surpass that of wine by 2025—for the first time in over 45 years.
After a 3.2% volume drop in 2022, the U.S. wine market’s decline will decelerate to a projected 1% loss this year, according to the 245-page Impact Databank report. Wine’s share of total drinks industry volume fell below 10% last year for the first time since 2010. But wine is expected to eke out a small gain in dollar terms in 2023, as brands priced at $15 and over a 750-ml. continue to outperform less expensive labels.
Among the over-$20 wines which have done well is Meiomi, which ranked 30th by volume in 2022, but was 10th in dollar terms among all brands in the U.S. market, according to the Shanken report. Meiomi was recently backed with a new “To the Fullest” campaign focused on consumer interest in red wine and highlighting its lower-alcohol Bright extension. Gallo’s La Marca Prosecco leads all imports within the $15 and over segment, and is projected to be among the top five labels in dollar terms by year-end.
In the $10-$15 segment, Deutsch’s Josh Cellars leads all American wines, and it ranked second overall in dollar terms among all brands in 2022, behind only Gallo’s Barefoot Cellars, according to the Impact Databank report. Riboli’s Stella Rosa ($13 for its core flavors) is expected to once again lead all imported wines overall in 2023—by volume and dollars—even after a significant decline last year. Earlier this year, the Stella Rosa portfolio extended into spirits with an Italian brandy ($30).
Moderate declines are projected for U.S. wine market volume until at least 2030, according to the Shanken report. Aside from premium-priced brands, other segments which will buttress the category include imported sparkling wines and wine-based cocktails/RTDs. For more information and to order The U.S. Wine Market: Impact Databank Review & Forecast, 2023 Edition, as well as other exclusive Shanken reports and publications, visit impactdatabank.com.—Juan Banaag
| Share of U.S. Beverage by Consumption Volume | |||||
| Type | 2015 | 2020 | 2022 | 2025P | |
|---|---|---|---|---|---|
| Beer | 78.95% | 72.15% | 70.65% | 69.13% | |
| Cider/FMBs1 | 4.11% | 10.07% | 10.84% | 11.66% | |
| Distilled Spirits2 | 6.81% | 7.59% | 8.70% | 9.63% | |
| Wine | 10.13% | 10.19% | 9.81% | 9.58% | |
| 1 Flavored malt beverages, including hard seltzer. 2 Includes RTDs. Source: IMPACT DATABANK © 2023 |
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Tagged : Barefoot, Impact Databank, Josh, La Marca, Meiomi, Stella Rosa
