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Reduction in U.S. Wine Industry Growth Says Recent Report

By March 29, 2018Top News

Silicon Valley Bank (SVB) released its State of the Wine Industry 2018 report, which states consumers are leaving the lower price segments in favor of better-quality offerings, but after more than 20 years of straight-line growth trends, total volume growth is leveling off. Retiring baby boomers and frugal millennials are driving a rotation of consumer preferences. Premiumization will continue, but softening is likely on the luxury end for wineries without preexisting strong brands. The premium wine segment will grow in the range of 4 to 8 percent, down from the estimate of 10 to 14 percent in 2017. For the industry as a whole, sales will rise by 2 to 4 percent, while volumes will increase slightly. Acquisitions will cool somewhat from the torrid pace of the past three years.

 

 

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