Description

“Total US dollar sales of wine topped $65 billion in 2019. Wine has enjoyed fairly steady yet modest growth, outpacing that of beer but falling short of spirits, thanks to a broad and often steadfast appeal to a wide swath of consumers across generations. Brands have been working to expand reach with new formats and packaging that target more casual and RTD opportunities, which also helped drive category growth. Yet in a crowded beverage category and an even more fragmented wine aisle, retaining consumer allegiance is challenging.”
– Mimi Bonnett, Director – Food and Drink, Foodservice

This report looks at the following areas:

  • Many drink options, with most adults using more than one beverage type
  • Is wine losing its popularity among women?
  • Wine drinkers are fickle, and the category is crowded

Table of Contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Key takeaways
          • Overview
            • Wine sales estimated to top $65 billion in 2019
              • Figure 1: Total US sales and forecast of wine, at current prices, 2014-24
            • The issues
              • Many drink options, with most adults using more than one beverage type
                • Figure 2: Alcohol consumption, July 2019
              • Is wine losing its popularity among women?
                • Figure 3: Changes in consumption, by gender, July 2019
              • Wine drinkers are fickle, and the category is crowded
                • Figure 4: Wine attitudes and behaviors, July 2019
              • The opportunities
                • Younger wine drinkers embrace variety
                  • Figure 5: Types of wine consumed, by generation, July 2019
                • Parents more likely to have “go-tos”
                  • Figure 6: Wine choice behaviors, by parental status, July 2019
                • Make sure your distribution model is ready for the future
                  • Figure 7: Purchase location, by generation, July 2019
              • The Market – What You Need to Know

                • Wine sales estimated to top $65 billion in 2019
                  • Table wine enjoys 90% volume sales, champagne/sparkling grows faster
                    • Domestic wines dominate and off-premise channels most widely used
                      • In wider beverage market, beer leads but wine and spirits growing faster
                      • Market Size and Forecast

                        • Wine sales estimated to top $65 billion in 2019
                          • Figure 8: Total US sales and forecast of wine, at current prices, 2014-24
                          • Figure 9: Total US sales and forecast of wine, at current prices, 2014-24
                          • Figure 10: Total US sales and forecast of wine, at inflation-adjusted prices, 2014-24
                        • Volume sales show slow, steady growth
                          • Figure 11: Total US volume sales and forecast of wine, 2014-22
                      • Market Breakdown

                        • Table wine is largest segment, champagne/sparkling is fastest growing
                          • Figure 12: Total US volume sales and forecast of wine, by segment, 2013-21
                          • Figure 13: Total US volume sales of wine, by segment, 2017 and 2019
                        • Domestic wine continues to lead, but imports grow share
                          • Figure 14: US volume sales of wine, by origin, 2014-18
                          • Figure 15: US volume sales of wine, by origin, 2014-18
                        • Off-premise sales account for 82% of volume sales of wine
                          • Figure 16: US volume sales of wine, by channel, 2014 and 2018
                          • Figure 17: US volume sales of wine, by channel, 2014-18
                      • Market Perspective

                        • Consumers enjoy a range of beverages, with beer topping the list
                          • Figure 18: Alcoholic drink consumption, July 2019
                        • Majority of consumers enjoy more than one type of alcohol
                          • Figure 19: Alcohol consumption, number of types consumed, July 2019
                        • Wine growth outpaces beer sales, but spirits grow share
                          • Figure 20: US retail market size, beer, spirits and wine/sparkling wine, 2017-19
                        • Cannabis legalization creates challenges, opportunities for alcoholic beverages
                          • Figure 21: Cannabis statements – Alcohol, July 2019
                      • Market Factors

                        • Health-related considerations may shape wine consumption
                          • Figure 22: Alcohol statements – Health – Net: any agree, by age, July 2019
                          • Figure 23: Wine purchase, by generation, July 2019
                      • Key Players – What You Need to Know

                        • Gallo and Constellation lead fragmented market
                          • Imports, sparkling wines and new formats are strongest performers
                            • Packaging innovation at the core of growth
                              • CBD-infused wines plus mobile apps to help orient consumers
                              • Company and Brand Sales of Wine

                                • Gallo, Constellation top the leaderboard yet losing share
                                  • Figure 24: Multi-outlet sales of wine, by leading companies, rolling 52 weeks 2018 and 2019
                              • What’s Working?

                                • Smaller domestics make gains with savvy marketing focus
                                  • Figure 25: Josh Cellars Wine – Where it All Started – YouTube 2017
                                • Imported wine, fast-growing brands illuminate successful approaches
                                  • Prophecy: premium identity, intricate art work
                                    • Kim Crawford: lighter, fruitier wines used in cocktails and recipes
                                      • Roscato and Stella Rosa: sweet, sparkling, lower-alcohol reds
                                        • 19 Crimes: connects with playful branding, games and apps
                                          • Figure 26: Multi-outlet sales of imported wine, total sales and sales of select brands, rolling 52 weeks 2018 and 2019
                                        • Sparkling wines come on strong
                                          • Figure 27: Multi-outlet sales of sherry, vermouth and champagne, total sales and select brands, rolling 52 weeks 2018 and 2019
                                        • New formats on the rise
                                          • Cans a growing share of new launches in 2018
                                            • Figure 28: Wine launches, by share of packaging 2014-19*
                                          • Boxes/cartons losing their stigma
                                              • Figure 29: Franz for Life 2019 ad
                                            • Environmentally friendly packaging claims lead among launches
                                              • Figure 30: Wine launches, by share of leading claims, 2014-19*
                                              • Figure 31: Wine launches, by share of types of environmental claims, 2014-19*
                                          • What’s Struggling?

                                            • The largest suppliers – Gallo and Constellation – struggle to invigorate sales in slow-growing domestic wine segment
                                            • What’s Next?

                                              • Expect to see more traditional and sparkling wines in cans
                                                • Wine in more hybrid formulations and blended beverages
                                                  • Tapping into the CBD buzz
                                                    • Using technology to educate and promote online purchase
                                                      • Online retailers, delivery services and apps may shake up distribution
                                                      • The Consumer – What You Need to Know

                                                        • Wine enjoys strong penetration with wide-ranging consumer base
                                                          • Consumption habits remain largely stable
                                                            • Red, white domestic wines are favorites but ample diversity seen
                                                              • Consumers thirsty for guidance
                                                                • Off-premise locations lead but almost half also buy wine on-premise
                                                                • Wine Consumption and Frequency

                                                                  • Wine follows beer as the most widely purchased alcoholic beverage
                                                                    • Figure 32: Alcoholic drink purchasing, July 2019
                                                                  • Just shy of a third are regular drinkers, consuming wine at least a few times a week
                                                                    • Figure 33: Frequency of wine consumption, July 2019
                                                                  • Wine is women’s drink of choice
                                                                    • Figure 34: Alcoholic drink purchasing, by gender, July 2019
                                                                  • …but male wine drinkers are frequent wine drinkers
                                                                    • Figure 35: Wine consumption frequency, by gender, July 2019
                                                                  • Millennials engaged, but so are others
                                                                    • Figure 36: Alcoholic drink purchasing, by generation, July 2019
                                                                  • Millennials stand out as regular consumers
                                                                    • Figure 37: Frequency of wine consumption, by generation, July 2019
                                                                  • Parents enjoy wine, and many other alcoholic beverages
                                                                    • Figure 38: Alcoholic drink purchasing, by parental status, July 2019
                                                                  • Just under half of parents enjoy wine weekly or more often
                                                                    • Figure 39: Frequency of wine consumption in the past three months, by parental status, July 2019
                                                                  • Wine consumption rises with household income…so does frequency
                                                                    • Figure 40: Alcoholic drink consumption, by household income, July 2019
                                                                    • Figure 41: Frequency of wine consumption in the past three months, by household income, July 2019
                                                                • Wine Associations

                                                                  • Wine widely seen as having good taste and pairing well with food
                                                                    • Figure 42: Perceptions of alcoholic beverages, July 2019
                                                                • Wine Consumption Behaviors and Attitudes

                                                                  • Those drinking more wine balances those cutting back
                                                                    • Figure 43: Wine behaviors and attitudes, July 2019
                                                                  • Regular wine drinkers are drinking even more
                                                                    • Figure 44: Change in consumption of wine, by demographics, July 2019
                                                                  • Low self-reported expertise points to brand opportunities
                                                                    • Figure 45: Level of wine knowledge, by key demographics, July 2019
                                                                • Types of Wine Consumed

                                                                  • Red, white and domestic wines in the lead, but ample diversity seen
                                                                    • Figure 46: Types of wine consumed, July 2019
                                                                  • Men stick to red, as women seek lighter, fruitier, sparkling wines
                                                                    • Figure 47: Types of wine consumed, by gender, July 2019
                                                                  • Younger wine drinkers embrace variety
                                                                    • Figure 48: Types of wine consumed, by generation, July 2019
                                                                  • More-affluent consumers seek wine from both Old and New World
                                                                    • Figure 49: Types of wine consumed, by household income, July 2019
                                                                  • Parents eager for varieties beyond basic red and white
                                                                    • Figure 50: Types of wine consumed, by parental status, July 2019
                                                                • Purchase Location

                                                                  • Shopping for wine is a mix of routine and specialized
                                                                    • Figure 51: Purchase location, July 2019
                                                                  • Consumers enjoy wine mostly at home
                                                                    • Figure 52: Purchase location, July 2019
                                                                  • Millennials use a greater number and range of channels
                                                                    • Figure 53: Net purchase location, by generation, July 2019
                                                                  • Millennials more likely to use nontraditional retailers
                                                                    • Figure 54: Purchase location, by generation, July 2019
                                                                  • Delivery partnerships with operators can cast a wider net
                                                                    • Figure 55: Purchase location, by household income, July 2019
                                                                • Wine Format

                                                                  • For off-premise consumption, consumers reach for the traditional
                                                                    • Figure 56: Wine formats purchased, July 2019
                                                                  • Younger generations are more open to diverse formats
                                                                    • Figure 57: Wine format, by generation, July 2019
                                                                  • Parents also overindex for packaging in diverse materials and sizes
                                                                    • Figure 58: Wine format, by parental status, July 2019
                                                                • Important Factors in Wine Choice

                                                                  • It’s about the taste, not the brand
                                                                    • Figure 59: Important factors, July 2019
                                                                  • Men look for external guidance, women look for taste cues
                                                                    • Figure 60: Important factors, by gender, July 2019
                                                                  • Millennials focus on packaging, label, awards
                                                                    • Figure 61: Important factors, by generation, July 2019
                                                                  • Affluent buyers place high value on varietal and country of origin
                                                                    • Figure 62: Important factors, by household income, July 2019
                                                                  • Parental status shapes priorities
                                                                    • Figure 63: Important factors, by parental status, July 2019
                                                                • Wine Choice Behaviors

                                                                  • Only about a quarter stick to same color, varietal and brand
                                                                    • Figure 64: Wine choice behaviors, July 2019
                                                                  • Men more likely to stick to same color (red)
                                                                    • Figure 65: Wine choice behaviors, by gender, July 2019
                                                                  • Affluent consumers show higher preference for same color and varietal
                                                                    • Figure 66: Wine choice behaviors, by household income, July 2019
                                                                  • Parents more likely to have “go-tos”
                                                                    • Figure 67: Wine choice behaviors, by parental status, July 2019
                                                                • Appendix – Data Sources and Abbreviations

                                                                  • Data sources
                                                                    • Sales data
                                                                      • Fan chart forecast
                                                                        • Consumer survey data
                                                                          • Abbreviations and terms
                                                                            • Abbreviations
                                                                            • Appendix – The Market

                                                                                • Figure 68: Total US volume sales and forecast of table wine, 2014-22
                                                                                • Figure 69: Total US volume sales and forecast of champagne/sparkling wine, 2014-22
                                                                                • Figure 70: Total US volume sales and forecast of dessert & fortified wine, 2014-22
                                                                                • Figure 71: Total US volume sales and forecast of vermouth & aperitif, 2014-22
                                                                                • Figure 72: US volume sales of table wine, by origin, 2014-18
                                                                                • Figure 73: US volume sales of champagne/sparkling wine, by origin, 2014-18
                                                                                • Figure 74: US volume sales of dessert & fortified wine, by origin, 2014-18
                                                                                • Figure 75: US volume sales of vermouth & aperitif, by origin, 2014-18
                                                                                • Figure 76: US volume sales of wine, by channel, 2014-18
                                                                            • Appendix – Key Players

                                                                                • Figure 77: Multi-outlet sales of domestic wine, by leading companies and brands, rolling 52 weeks 2018 and 2019
                                                                                • Figure 78: Multi-outlet sales of imported wine, by leading companies and brands, rolling 52 weeks 2018 and 2019
                                                                                • Figure 79: Multi-outlet sales of sherry, vermouth and champagne, by leading companies and brands, rolling 52 weeks 2018 and 2019

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