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 with growing numbers. If you look at the U.S wine production, California produces 90% of its wine and accounts for 10% of the world’s grape production. The U.S also leads to 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. Although it’s not true as 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 people can order online and have it delivered to their homes or workplace. It’s quite comfy, isn’t’ it?
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 manufactured locally at affordable prices.
Technology in Cultivation and Production
Technological advances have also contributed positively to the growth of the wine industry. Wine production has been automated and machines are being used in various stages of wine production. This helps in easy production of not just large quantities of wine but also of high-quality. 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. Also, GPS with thermal sensors are used to collect useful data elements, hence improving the quality of wine production.
Availability of Different Flavours and Categories
Wineries in the U.S. have now embraced different flavors of wine. This has been 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, 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 with more shoppers want to include their flavored bottle of wine in their grocery list. The packaging is both convenient and quite 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.
Also, 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. These also appeal to younger consumers as they are less concerned about wine traditions and just want to have a taste of great wine.
Table wines have a great market share compared to their counterparts. Reason being they enhance the flavor of the food, in addition, they are not costly, hence 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 also they pair nicely with food. It doesn’t fill you up as much as some heavier wines do.
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. Between 2014-2018, there was a sharp, steady increase in the consumption of champagne and prosecco. The underlying factor behind this was the introduction of low-cost wine products in this category. This surged the sparkling wine industry in America and it will 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 US wine industry. 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 account for 28.7% of wine sale in the US. This attributes 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, they are likely to increase their sales to major outlets like supermarkets and restaurants across America.
The world has become a global village where one can access any product, all thanks to the internet. E-commerce is a big contributor to the 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.