U.S. Wine Industry Skyrockets, Hitting $107 Billion in Sales in 2023 – Latest Report Reveals

U.S. Total Wine Sales in Billions $ from 2018 – 2023

Lately, the headlines about the U.S. wine industry have been rather bleak. However, a newly released report shows that total wine dollar sales were actually up in 2023, and have continued on an upward trend since 2018. Furthermore, with 11,600 wineries operating in all 50 states, a representative survey sample revealed that more than 50% had achieved their sales goals in 2023.

“Though the volume of wine shipments were down in 2023, the actual dollar sales of all wine sold in the U.S. market was up over previous years—to $107 billion,” stated Adam Beak, Managing Director and Head of the Wine & Spirits Vertical of BMO, the firm that spearheaded the report.

Given that wine dollar sales were just over $73 billion in 2018, this is an astounding increase of 46% through 2023. Though inflation and price increases play into this, it doesn’t account for all of the market growth. Instead, this report finds that U.S. consumers are continuing to drink wine in moderation and trading up.

Other key findings were that wines priced more than $10 per 750ml bottle have remained stable and are expected to grow. Indeed, nearly 30% of consumers report they purchase wine priced at $20 or more on a monthly basis, or more often.

Titled the 2024 BMO Wine Market Report, it is the first of its kind to capture 100% of wine sold in the U.S. market. Extensive data from the Bureau of Economic Analysis (BEA), the Tax & Trade Bureau (TTB) and other reputable sources were included in the final analysis. BMO plans to publish the report on an annual basis as a complimentary service to the industry.

The 34-page report includes not only market/sales data, but consumer trends, and winery insights. It was compiled and written by four authors: 1) Adam Beak of BMO; 2) Andrew Adams with Wine Business Analytics, 3) Jon Moramarco of bw166 and Gomberg-Fredrikson, and 4) Christian Miller with Wine Market Council and Full-Glass Consulting. I was able to interview the authors via phone and email.

“We wanted to do a fact-based report that captured all of the market, because not all data sources do,” explained Jon Moramarco. “We hope it gives a clear and concise view of what’s going on. Obviously the industry has work to do, but this report shows that the sky is not falling.”

Title Page of 2024 BMO Wine Market Report

Reporting wine data poses difficulties due to its distribution through multiple channels each with unique data tracking methods. Some firms focus specifically on wine sales in offline retail establishments like grocery stores and wine shops. Others concentrate on sales in bars and restaurants. But there are also other categories like imported bulk wine, winery direct sales, and online sales which are each monitored by distinct sources.

The report’s section on wine consumer behavior leverages several years’ worth of consumer survey data from the Wine Market Council. The analysis for this section was conducted by Christian Miller. His findings show that wine drinkers make up 35% of the U.S. adult population and that overall per capita consumption has largely stayed the same since the mid-90s.

Percentage of U.S. Wine Drinkers by Generation from 2005 to 2023

One intriguing highlight of the research indicates that 61% of U.S. wine consumers consist of Gen Z, millennials, and Gen X individuals. Interestingly, it’s the baby boomers (59 years old and above) that have started reducing their alcohol consumption. Yet, according to Miller’s comprehensive analysis, the overarching trend shows more similarities than differences across the generations.

Miller notes, “For instance, the percentage of Gen Xers, Millennials, and Gen Zers who enjoy wine in their 20s is relatively similar.” He further warns against the danger of assigning stereotypes based on generational behaviors. As he explains, additional factors like life stage, income level, education, and socio-cultural background profoundly affect wine preference and adoption.

The report indeed finds that wine consumers tend to be more wealthy. Around 53% of them make over $100,000 every year, as opposed to just 34% of non-wine consumers. In addition, 52% of wine enthusiasts are college graduates, and 71% are homeowners.

The report further delves into winery insights, showcasing a survey that Andrew Adams of Wine Business Analytics conducted with 630 wineries. These wineries were selected from a larger database of 11,000, ensuring a representation that spanned across different U.S. states, winery sizes, and price points.

Despite the fact that several wineries, notably those selling at less expensive prices in retail stores, have not seen favourable sales figures in recent years, it was reported that 55% of wineries in the United States met or surpassed their sales targets in 2023.

In addition, over 70% of those surveyed anticipate more sales growth in the future. The report emphasized the introduction of new brands, wine cocktails (wine RTDs), cost-effective by the glass alternatives, innovative packaging designs, and growing direct-to-consumer sales at the winery and digitally as areas of market expansion.

Despite the acknowledgment by the report’s authors of potential challenges, and the likelihood that the lower market segment will remain stable or decrease, the U.S. wine industry was stronger than anticipated in 2024.

“I found some of the positive findings in the report surprising, given the recent prevalence of negative headlines,” said Adam Beak of BMO.

“We need to fight back with real fact-based data, because the negativity could become a self-fulfilling prophecy. That’s not to say there aren’t problems, and that some businesses will have a hard time, but, the news isn’t all negative. Many wineries are expecting good growth in future years,” he continued.

Beak concluded by saying that, “we hope wine businesses can use the data in the report to guide them and make better decisions. Wine is an 8,000 year old industry, and it isn’t going away, but it is evolving. And, as wine businesses, we need to evolve with it.”

Adam Beak, Managing Director and Head of the Wine & Spirits Vertical of BMO

One Community. Many Voices. Create a free account to share your thoughts. 

Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space.

In order to do so, please follow the posting rules in our site’s Terms of Service.  We’ve summarized some of those key rules below. Simply put, keep it civil.

Your post will be rejected if we notice that it seems to contain:

User accounts will be blocked if we notice or believe that users are engaged in:

So, how can you be a power user?

Thanks for reading our community guidelines. Please read the full list of posting rules found in our site’s Terms of Service.

---

About the Author: Chris Lehoux

Meet Chris Lehoux, an experienced wine connoisseur and dedicated blogger with a deep passion for all things wine-related. With years of expertise in the industry, Chris shares insightful wine reviews, valuable wine tasting tips, expert pairing advice, and captivating tales of vineyard visits. Join Chris on a journey through the world of wine, where every sip is an adventure waiting to be savored!