According to data from Wine & Spirits Wholesalers of America (WSWA), wine sales decreased by 8% in the year ending August 2024, indicating challenges ahead for the category amidst changing consumer trends.
Industry expert Dale Stratton attributes the decline in sales to “larger systemic issues” affecting purchasing patterns, with premium wines priced over $100 experiencing a significant 12.5% drop in sales over the past year.
The upcoming holiday season, known for increased wine consumption, holds great importance for producers as they strive to overcome the obstacles faced in the wine category throughout 2024.
SipSource analyst Danny Brager, as reported by WSWA, sees reasons for optimism within the wine category, noting a 2% increase in prosecco sales and a 3% rise in domestic mid-tier wines priced over $50. This bodes well for the upcoming critical period from October to December.
As consumer preferences shift towards ready-to-drink spirits or reduced alcohol consumption, wine producers are adapting to an uncertain future. Some major beverage companies are focusing on premium offerings to appeal to a niche audience willing to pay more, such as Constellation Brands’ acquisition of Sea Smoke and the Duckhorn Portfolio’s recent sale to private equity firm Butterfly.
Additionally, some producers are exploring non-alcoholic alternatives in their wine lineup, with luxury brand Moët Hennessy investing in French Bloom, a non-alcoholic sparkling wine brand catering to consumers seeking a premium alcohol-free option.