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An Overview of the US Wine Market

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The wine market

The US wine and spirits markets have gradually been capturing the market share of the beer market over the past few years. According to Wines & Vines, there are about 8,300 wineries in the United States, a 7% increase compared to the previous year. Within the United States, the top five wine producers are California, Washington, New York, Oregon, and Texas.

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Wine market share

According to the Distilled Spirits Council of the United States, market share of wine, as a percentage of total alcoholic beverage industry supplier gross revenues of $65.8 billion, remained flat at 17% in 2014. The US wine market share was 16.6% in 2005.

Table wine is the major US wine category. Other categories include dessert wine, champagne, and sparkling wines. Some of the leading wine producers are E & J Gallo Winery, Constellation Brands (STZ), The Wine Group, and the Bronco Wine Company.

Constellation Brands makes up 0.11%, 0.16%, and 0.11% of the iShares Core S&P 500 ETF (IVV), iShares Russell 1000 Growth ETF (IWF), and the SPDR S&P 500 ETF (SPY), respectively. SPY also invests 0.16% in Molson Coors Brewing (TAP), one of the major beer producers. Brown-Forman (BF.B) constitutes 0.07% of IVV. The Vanguard FTSE All-World ex-US ETF (VEU) has 1.23% exposure to Diageo (DEO) (DGE.L).

According to Nielsen, the most popular wine varieties in the off-premise channel are Chardonnay, Cabernet Sauvignon, Merlot, Red Blends, Sweet Reds, and Pinot Grigio.

Growing consumption

In 2013, wine shipments to the United States from all production sources, domestic and foreign, increased by 3% to 375.2 million cases, with a retail value of $36.3 billion. The 4% rise in champagne and sparkling wines volumes was primarily driven by a higher demand for Prosecco, an Italian wine.

According to the Wine Institute, more than 101 million Americans consume wine, most of them Baby Boomers. Attractively priced wines and distinct tastes have also attracted Millennials to this category. The United States has now emerged as the world’s largest wine-consuming nation.

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