THE WINE INDUSTRY

The Wine Industry in USA

The Wine Industry in USA

Overview

The wine market in the U.S. is a market of 206 million potential consumers in the population aged over 21 years. Individual consumption was doubled in 40 years, reaching 9.6 liters / capita / year in 2010. Yet this is a figure well below that which characterizes the first country in the world, whose annual consumption is close to 50 L/person. The United States surpassed France in 2010 to become the first wine market with a consumption from all sources, accounting for 330 million boxes, up 2% over 2009 and an estimated market value of 30 billion USD (International Organisation of Vine and Wine, 2011).

The market for wines and spirits in the United States is booming. Indeed, not only wine consumption per capita rises, but in addition, with a population growth of 2 million people a year, the number of consumers is increasing. The market does not suffer from a lack of confidence, but because of the crisis, consumers change their consumption patterns is difficult because they maintain the same level of expenditure. Wine sales in the segment located 20 USD and have registered a fall of 20% to 30% in 2009, while sales of wine costing less than 6 USD a bottle rose 5% over the same period. However, this decline has been halted and prices started to increase in 2011. The crisis has also had positive effects on domestic consumption, since the weak dollar has driven up prices for imported wines and encouraged consumers to see on American wines thus become more competitive (Grape Release, 2011).

Although increasing the share of wine in the total consumption of alcoholic beverages remains marginal, representing less than 10% of the total volume consumed. Beer still dominates the market for alcoholic beverages with more than 82 liters of beer consumed per capita. Nonetheless, beer consumption tends to decline and, over the years, the wine is gradually gaining market share. Domestic production dominates the domestic market. It accounted for 72% of total wine consumption in the country in 2010 (Wine Business Monthly, 2010).

Wine sales overseas exceeded the French sales (330 million boxes against 320.6 million). The introduction of lesser known varieties such as Muscat, a sweet white wine whose popularity has exploded in the United States is a factor in this rapid increase in consumption. Similarly, champagne and other sparkling wines have been growing by 10% (International Organisation of Vine and Wine, 2011).

Americans tasted more wine and the recent economic crisis has not changed their habits. In 2009 U.S. consumption of wine has increased by 0.8%, representing a total volume of 297 million cases of 12 bottles. Although most Americans prefer domestic wines, some foreign countries come to take their game such as Chile, New Zealand or Portugal. According to some experts, U.S. consumption of wine is expected to reach a volume of 310 million cases of wine in 2014.

Consumer profile

In the ...