Silicon Valley Bank has released its 2024 State of the Wine Industry Report, which highlights the challenges facing the wine industry. The report reveals that wine sales have been declining for the past three years, with volume sales expected to continue to decrease in 2024.
The report also states that spirits sales are expected to surpass wine sales next year. Other challenges facing the industry include overproduction, a lack of interest from younger consumers, and a decrease in visitors to tasting rooms. The report suggests that the industry needs to adapt and embrace data and technology to address these challenges.
Overall, the report does not paint a healthy picture of the wine world, which, due to the three-tier system in the USA, is unlikely to improve. It’s one reason why, DTC is something every winery needs to amplify as owning the customer relationship, squeezing the middle and being more marketing oriented is so essential.