U.S. wine demand is forecast to increase 1% a year in volume terms through 2024, according to Wine: United States, a report recently released by Freedonia Focus Reports.
Advances will be supported by growth in disposable personal income levels and a consumer trend in alcoholic beverages toward premium products, such as wine, and away from beer, the study says.
Demographics will also play a role, in that millennials drink wine more casually than baby boomers, and join wine clubs and frequent wine bars in high numbers. Indeed, an increasing number of wineries are eschewing palatial visitor centers and tasting rooms for more rustic settings like barns and offering activities like yoga classes among the vines. Increasing popularity of events like “sip-and-paint” art courses will also stoke gains.
Increasing adoption of single-serving canned wine will reinforce casual consumption among millennials, but baby boomers will remain the prime market and their affluence will continue to drive demand for higher-value products. Yet, as baby boomers drop out of the wine market, growth in wine consumption will slow on the relatively low levels of disposable income among millennials, as well as increasing competition from distilled spirits and cocktails.