Wine consumption spiking
The U.S. wine market reached 344.7 million nine-liter cases in 2017, an increase of 1 percent, according to the Beverage Information Group's 2018 Wine Handbook.
That's down from a 2.4 percent gain in 2016, perhaps a sign of the category's struggle to compete with spirits and beer for share of beverage alcohol occasions.
As with the previous year, sparkling wines — up 5.8 percent in 2017 — drove the growth. This marked the 16th consecutive year of increases for the total sparkling category.
Strong sales of rosé and wines in the $15+ per-bottle price points also contributed: Consumers have discovered that sparkling wines are not just for special occasions and rosés are not just for warm weather.
Table wine saw modest growth of 0.8 percent to 311.8 million cases sold in 2017, led by a 1.2 percent increase of imported wines. This amount represents 90.5 percent of the total U.S. wine category, the Wine Handbook notes, although some of the major table wine brands are struggling to capture consumer attention that's been lost to other products such as bourbon and craft beer.
Millennials are more interested in trying new flavors than adhering to one style or one brand, so they buy across different categories, countries and varietals of wine. These consumers are interested in specific wine varietals and drawn to eye-catching label art and a strong brand story.
Higher quality boxed/canned wines are changing consumers' negative perceptions of this wine packaging. Two of the major boxed wine brands posted double-digit growth in 2017, according to the Wine Handbook.
Red wine blends have also increased in popularity. Consumers no longer look at the term “blend” as a negative but rather a sign that a wine is fine-tuned and flavorful.
About the 2018 Wine Handbook
The 2018 Wine Handbook is the most comprehensive source of information on U.S. wine industry sales trends. It includes consumption data and projected sales by category and by market, as well as leading brands and historical information.
Categories include table, fortified and dessert wines, sparkling and Champagne, vermouth and wine coolers. The 2018 Wine Handbook is priced at $1,025 for hard copy or PDF version and $1,625 for hard copy with accompanying Excel data CD.