The U.S. wine market is expected to reach USD 85.00 billion by 2025. Rising per capita consumption of wine with meals and desserts is expected to drive growth over the forecast period.
Accessibility of consumers to the products play a very important role in the market’s growth. Therefore, the growing access of consumers to the product in stores, restaurants, bars, nail salons, bookstores, coffee shops, movie theaters, and car wash & repair shops continues to expand over 5,500,000 locations in the U.S., and is playing a huge role in the market’s growth. In addition to this, producers and manufacturers are targeting niche sales channels such as direct-to-consumer sales and tasting rooms, driving the growth through usual routes.
Adoption of technology in the management and manufacturing of the product has helped the market grow at a quicker pace in the recent years. For instance, Agri-business software offered various industry-specific solutions and application of software to manage administrative tasks, track internal production and sales data, is likely to complement growth in the coming years as well. Also, help from E-commerce and digital marketing tools is expected to aid the market in driving up sales as the online sales of wine products have been legalized in the majority of the U.S. states.
The industry is highly competitive, and the product competes with other alcoholic and nonalcoholic beverages for restaurant presence, retailer shelf space, distributor attention, brand recognition and promotions. Some of the key players among the 50 major companies in the market are the Wine Group, Constellation Brands U.S. Operations, Inc., E. & J. Gallo Winery, Treasury Wine Estates. Constant innovation in the market and manufacturing process by these key players are set to boost the growth in the coming years.
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Further key findings from the report suggest:
Innovative ideas like forming groups, gatherings to raise awareness about the benefits of wine and etc., are expected to boost sales. For example, in June 2020, Miller Family Wine Company announced the launch of an innovative new wine club, reflecting five generations of quality in a monthly offering of their high-quality Central Coast wines.
Mergers & Acquisitions is used as an expansion strategy by several key players. For instance, in October 2020, Miller Family Wine Company, a division of the Thornhill Companies, acquired BNA Wine Group’s portfolio of wines.
On the basis of products, table wine accounted for 82.2% of the revenue share in 2017 on account of low Alcohol by Volume (ABV) content and availability of wide varieties of blends including Merlot, cabernet sauvignon, chardonnay, and pinot noir
Sparkling wine is expected to grow at a CAGR of 10.8% over the forecast period owing to low cost of the product, which offers affordable luxury to young consumers celebrating different events throughout the year
On the basis of distribution, the off-trade distribution channel accounted for the largest revenue share in 2017, distributing over 71.3% of the product on account of increasing sales through supermarket chains, liquor stores offering value and variety in their selection
On-trade distribution channel is expected to grow at a CAGR of 4.4% on account of high demand from restaurants and hotels with increasing consumer income, and the rising level of spending at wineries
Companies in the industry are highly competitive, and the major players compete on the basis of wide range of product portfolio, quality, brand names, pricing, and distribution strength; however, small-scale producers depend on distributors for promotional support
Grand View Research has segmented the U.S. wine market on the basis of product and distribution.
Product Outlook (Volume, Million Liters; Revenue, USD Billion; 2014 - 2025)
Distribution Outlook (Volume, Million Liters; Revenue, USD Billion; 2014 - 2025)
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