Trends in the U.S. Wine Market
Grapes are the most valuable crop fruit in the U.S. It is the sixth-largest grown crop in the U.S producing up to 8 million tons annually and the number keeps growing. Looking at the U.S wine production by state, California produces 90% of its wine and accounts for 10% of the world’s grape production. The U.S also leads in wine consumption with over 350 million gallons consumed annually.
Fine wine has always been associated with the higher class in the U.S. The changing of wine trend has downplayed the notion that only the rich can afford this classic and sweet commodity. The past few years have seen the U.S wine sales trend change in a big way. What has made this change is the online distribution of wine where many people can order wine from wineries like Stella Rosa Wines and have it delivered to their homes or workplace. But what makes the U.S a giant in wine production and consumption? Here are a few aspects that have contributed to the growth of the wine industry in the U.S.
- Availability of Different Wine Products
One major factor that has greatly influenced wine industry trends in the U.S. is the increasing availability of wine products. Wine stores are found almost everywhere in the U.S. today. You will find them in car washing stations, movie theatres, and even bookstores. This has really promoted the consumption of wine. You will find different kinds of wine products that are manufactured locally at affordable prices.
- Technology in Cultivation and Production
Technological advances have also contributed positively to the growth of the wine industry in the U.S market size. Wine production has been automated and machines are being used in various stages of wine production making it easy to produce not just large quantities of wine product, but also high-quality wine in a short time. Boutique processing plants and facilities like Stella Rosa Wines are the main beneficiaries of these advancements. Wineries use advanced technology drone aircraft to irrigate the wines and GPS with thermal sensors to collect useful data elements that help improve the quality of wine production.
- Availability of Different Flavours and Categories
Wineries in the U.S. have now embraced different flavors of wine that is brought about by adding other ingredients apart from water and grapes. The wines and spirits marketplace have included apples, berries, yeast, palm, cherries, sugar, enzymes, flavors, and rice to give a different explosion of taste catering to different demographics.
- New Packaging Packs for Wine
As per the market research industry trends, new and exciting forms of wine packaging are increasingly creeping into the wine market to lure in new customers. This has contributed a lot in the sharp increase of wine sales trend in the U.S since shoppers want to include that flavored bottle of wine in their grocery list. The packaging is both convenient and very portable. For instance, we have the “bag-in-box” packaging which is popularly used by manufacturers due to its low cost of production called Premium.
Augmented Reality Labels (AR) is a newbie in the packaging of wine. In this case, wine bottle labels are being used to initiate fun storytelling while you scan the label with your smartphone. This type of technology is gaining good momentum as it helps to build consumer engagement along with brand awareness.
Plastic bottles are also new wine packaging that is slowly gaining popularity. Besides these new packaging methods, we also have disposable plastic cups, aseptic cartons, pouches, and cans, which appeal to younger consumers who are less concerned about wine traditions and just want to have a taste of great wine.
- Wine Dining
Table wines have a great market share compared to their counterparts. Reason being that they enhance the flavor of the food and they are not costly making them favorable for lower-income earners. Another factor contributing to the dominance of the table wines is the low alcohol percentage trend. Wines from alcohol percentage 4 – 9% can be consumed more often without the fear of getting intoxicated and lower alcohol wines pair nicely with food. It doesn’t fill you up as much as some heavier wines do.
- Sparkling wine
Sparkling wine is also another great contributor to wine statistics in the U.S market today. It is one of the fastest-growing wine segments in the industry. There was a sharp, steady increase in the consumption of champagne and prosecco between 2014 and 2018. Due to the introduction of low-cost wine products in this category also with the interesting new flavors being developed, the sparkling wine industry in America will evolve and continue to grow.
- New Distribution Channels
New distribution channels such as on-trade and off-trade channels, steady marketing campaigns, and a new breed of consumers have contributed positively to the state of the wine industry in the U.S. 72.5% of sales volume came from off-trade distribution channels in 2017. This was brought about by the rising demand from, supermarkets, hypermarkets, convenience stores, mini markets, and liquor stores.
On-trade distribution channels which accounted for 28.7% of wine sale attributes these numbers from high business entertainment spending and tourism industry. A huge share came from clubs, hotels, and restaurants. However, the high cost of production is likely to dampen the spirit of growth this year. Private label selection has been the main focus of wineries. By improving their value and quality wines like Stella Rosa have increased their sales to major outlets like supermarkets and restaurants across America.
- E-commerce Distribution
The world has become a global village where one can access certain products no matter how far they are thanks to the internet. E-commerce is a big contributor in the in distribution since most Americans shop online nowadays. This is due to the unavailability of certain wine products in their locality. Moreover, E-commerce distribution is soon to receive a major boost, thanks to the favorable changes in the state regulations related to online sales.