Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Executive Summary
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- Wine market reached $32.5 billion in 2008
- Imports outpace domestics
- Demographic influence
- Liquor stores face uphill battle against supercenters and supermarkets
- Industry consolidation continues
- Not your father’s wine
- Wine consumption continues to grow
- Usage frequency on the rise
- Wine viewed as healthy, accessible
- Spending on wine varies widely by occasion
Insights and Opportunities
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- Hispanics are an untapped market
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- Figure 1: Table wine consumption versus other alcoholic beverages, by race/Hispanic origin, February 2007-March 2008
- Changing preferences of Hispanic consumers
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- Figure 2: Changing preference of Hispanic consumers, by type of domestic wine, 2003 and 2008
- Wine women want
- Go green
- Paradigm shift in wine packaging reduces wine’s carbon footprint and provides cost-savings to consumers
- Organic wines—address environmental issues and health concerns
- Sustainable wine
Fast Forward Trends
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- Premiumization and Indulgence—emphasis on experience rather than price
- Simplicity and convenience
Market Size and Forecast
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- Key points
- Rising consumption and strong premium sales driving growth
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- Figure 3: Total U.S.* sales and forecast of wine** at current prices, 2003-13
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- Figure 4: Total U.S.* sales and forecast of wine** at inflation-adjusted prices, 2003-13
- Wal-Mart sales
Competitive Context
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- Key points
- Wine outpaces beer in retail growth
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- Figure 5: retail volume sales by beverage, 2005 and 2007
- Premium wines drive sales growth
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- Figure 6: Trends in table wine prices, by retail price segment, 2005 and 2007
- Shift in wine retail distribution
Segment Performance
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- Key points
- Imported wine outpaces domestics
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- Figure 7: Total U.S. volume sales and forecast of table wine, by segment, 2003-07
- Figure 8: Total U.S. volume sales of table wine, by segment, 2005 and 2007
Segment Performance—Domestic Wine
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- Price increases help domestic wine grow dollar sales
- Domestic wine grows due to expansion in retail channels
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- Figure 9: Total U.S. volume sales of domestic wine, 2003-07
Segment Performance—Imported Wine
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- Affordable critter labels help grow imported wines
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- Figure 10: Total U.S. volume sales of Imported wine, 2003-07
Retail Channels
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- Key points
- Supercenters/warehouse clubs lead the growth in wine retailing
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- Figure 11: U.S.* sales of wine**, by retail channel, 2006 and 2008
Retail Channels—On-premise
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- On-premise sales grow despite recent “dining-in” trend
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- Figure 12: U.S. sales of wine at on-premise channels, 2003-08
Retail Channels—Liquor Stores & Wine Shops
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- Liquor stores face uphill battle against supercenters/supermarkets
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- Figure 13: U.S. sales of wine at liquor stores, 2003-08
Retail Channels—Supermarkets
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- Effective merchandising and marketing programs drive sales
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- Figure 14: U.S. sales of wine at supermarkets, 2003-08
Retail Channels—Supercenters and Warehouse Clubs
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- New stores + Wal-Mart’s new focus on wine = strong sales
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- Figure 15: U.S. sales of wine at supercenters and warehouse clubs, 2003-08
Market Drivers
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- Wine goes mainstream
- Health and wellness trend
- An affordable luxury in tough economic climate
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- Figure 16: Spending at restaurants compared to last year, by age, January 2008
- Loosening alcohol laws
- Repeal of Blue Laws
- Direct shipping laws
- Millennials and Baby Boomers to drive growth through growth in numbers
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- Figure 17: Population aged 21 or older, 2003-13
Foreign Trade
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- Imports
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- Figure 18: Import of wine to the U.S., 2003-08
- Exports
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- Figure 19: Export of wine fron the U.S., 2003-08
Companies and Brands
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- Key points
- Leading companies
- Industry consolidation
- E.&J. Gallo expands presence in Napa Valley
- Constellation Brands thrives on expanding premium wine portfolio
- The Wine Group rides on the success of Franzia Winetaps
- Foster’s Americas
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- Figure 20: Wine sales of leading companies, by volume, 2005 and 2007
Brand Share—Domestic Wine
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- Key points
- Value-priced brands thrive amid slowing economy…
- …while premium-priced brands attract oenophiles; mid-priced brands struggle
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- Figure 21: Selected brand sales by volume and market share of domestic wines in the U.S, 2005 and 2007
Brand Share—Imported Wine
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- Key points
- “Critter” brands continue to dominate imports
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- Figure 22: Selected brand sales and market share of imported wines in the U.S, 2005 and 2007
Brand Qualities
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- Yellow Tail
- Barefoot Cellars
Innovation and Innovators
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- Key points
- Packaging innovation
- Tetra Pak
- Screw caps
- Plastic and aluminum bottles
- Wine boxes
- Mixing varietals
- Organic
- Celebrity wines
- Fruit wines
Advertising and Promotion
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- Overview
- Print advertising
- TV advertising
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- Figure 23: Arbor mist television ad, 2008
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- Figure 24: Fisheye television ad, 2008
- Non-traditional marketing platform to attract young consumer
- Advertising expenditures
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- Figure 25: Advertising expenditure in the wine industry, 2006-07
The Consumer: Usage, Frequency of Use
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- Key points
- Consumption of wine
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- Figure 26: Trends in table and sparkling wine consumption, 2003-08
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- Figure 27: Table wine consumption, by key demographics, February 2007-March 2008
- Wine versus other alcoholic beverages
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- Figure 28: Table wine consumption versus other alcoholic beverages, by age, February 2007-March 2008
- Frequency of drinking wine
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- Figure 29: Trends in the frequency of drinking domestic and imported table wine in the past thirty days, 2003-08
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- Figure 30: Mean frequency of drinking table wine, by key demographics, February 2007-March 2008
- Consumption of domestic wine by type
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- Figure 31: Domestic table wine consumption by type, by age, February 2007-March 2008
- Consumption of imported wine by country of origin
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- Figure 32: Imported table wine consumption by country of origin, by age, February 2007-March 2008
The Consumer: Choice of Retail Channels
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- Figure 33: Choice of retail channel to purchase wine, by age, August 2008
- Wine purchase by the type of packaging
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- Figure 34: Wine purchase, by the type of packaging, by age, August 2008
- Health perceptions of wine
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- Figure 35: Health perceptions of wine, by age, August 2008
- Attitudes towards expensive wine
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- Figure 36: attitudes towards expensive wine, by age, August 2008
- Attitudes towards new trends in wine
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- Figure 37: Attitudes towards fun names and packaging type, by age, August 2008
- Wine and food
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- Figure 38: Attitudes towards wine and food, by gender, August 2008
- How consumers shop for wine
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- Figure 39: Decision-driving attributes in the purchase of wine, by age, August 2008
- Occasions to drink wine
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- Figure 40: Occasions or places to drink wine, by age, August 2008
- Spending on wine by the purpose of consumption
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- Figure 41: Spending on wine, by purpose of consumption, August 2008
- Mean spending on wine by the purpose of consumption
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- Figure 42: Mean amount spent on wine, by purpose of consumption, by gender, August 2008
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- Figure 43: Mean amount spent on wine, by purpose of consumption, by age, August 2008
- Wine and education
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- Figure 44: Wine and education, by income, August 2008
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Race and Hispanic Origin
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- Wine consumption and frequency
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- Figure 45: Table wine consumption, by key demographics, February 2007-March 2008
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- Figure 46: Mean frequency of drinking table wine, by key demographics, February 2007-March 2008
- Consumption of Imported wine by country of origin
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- Figure 47: Imported table wine consumption by country of origin, by race/Hispanic origin, February 2007-March 2008
- Choice of retail channels
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- Figure 48: Choice of retail channel to purchase wine, by race/Hispanic origin, August 2008
- Wine and food
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- Figure 49: Attitudes towards wine and food, by race/Hispanic origin, August 2008
- Spending on wine by the purpose of consumption
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- Figure 50: Mean amount spent on wine, by purpose of consumption, by race/Hispanic origin, August 2008
- Wine and education
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- Figure 51: Wine and education, by race/Hispanic origin, August 2008
Cluster Analysis
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- Engaged oenophiles
- Opportunity
- Who they are
- Vino grandees
- Opportunities
- Who they are
- Infrequent occasionals
- Opportunity
- Who they are
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- Figure 52: Wine drinker clusters, Month 2008
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- Figure 53: Consumption of wine by type, by clusters, August 2008
- Figure 54: Attitudes towards wine by clusters, August 2008
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- Figure 55: Decision-driving attributes in the purchase of wine, by wine drinker clusters, August 2008
- Figure 56: Wine purchase by the type of packaging, by wine drinker clusters, August 2008
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- Figure 57: Occasions or places to drink wine, by wine drinker clusters, August 2008
- Figure 58: Choice of retail channel to purchase wine, by wine drinker clusters, August 2008
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- Figure 59: Spending on wine by purpose of consumption, by wine drinker clusters, August 2008
- Demographics
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- Figure 60: Wine drinker clusters by gender, August 2008
- Figure 61: Wine drinker clusters by age group, August 2008
- Figure 62: Wine drinker clusters by income group, August 2008
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- Figure 63: Wine drinker clusters by race, August 2008
- Figure 64: Wine drinker clusters by Hispanic origin, August 2008
- Methodology
Custom Consumer Groups
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- Adults aged 55+ are the key consumers in the market…
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- Figure 65: Incidence and frequency of drinking table wine, by gender and age, February 2007-March 2008
Appendix: Studies on Wine
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- Heart Health
- Cancer
- Neurological diseases
- Anti-aging
Appendix: Other Useful Consumer Tables
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- Wine versus other alcoholic beverages
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- Figure 66: Table wine consumption versus other alcoholic beverages, by gender, February 2007-March 2008
- Consumption of domestic wine by type
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- Figure 67: Domestic table wine consumption by type, by gender, February 2007-March 2008
- Consumption of imported wine by country of origin
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- Figure 68: Imported table wine consumption by country of origin, by income, February 2007-March 2008
- Choice of retail channel to purchase wine
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- Figure 69: Choice of retail channel to purchase wine, by gender August 2008
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- Figure 70: Choice of retail channel to purchase wine, by income, August 2008
- Wine purchase by the type of packaging
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- Figure 71: Wine purchase, by the type of packaging, by gender, August 2008
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- Figure 72: Wine purchase, by the type of packaging, by race/Hispanic origin, August 2008
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- Figure 73: Wine purchase, by the type of packaging, by income, August 2008
- Health perceptions of wine
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- Figure 74: Health perception of wine, by gender, August 2008
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- Figure 75: Health perception of wine, by income, August 2008
- Attitude towards expensive wine
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- Figure 76: Attitudes towards expensive wine, by race/Hispanic origin, August 2008
- Attitudes towards fun names, fruit wine, and packaging type
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- Figure 77: Attitudes towards fun names and packaging type, by race/Hispanic origin, August 2008
- Influence of family on wine consumption
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- Figure 78: Raised in family that enjoys wine, by race/Hispanic origin, August 2008
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- Figure 79: Raised in family that enjoys wine, by region, August 2008
- Decision-driving attributes in purchasing wine
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- Figure 80: Decision-driving attributes in the purchase of wine, by race/Hispanic origin, August 2008
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- Figure 81: Decision-driving attributes in the purchase of wine, by region, August 2008
- Occasions to drink wine
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- Figure 82: Occasions or places to drink wine, by gender, August 2008
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- Figure 83: Occasions or places to drink wine, by race/Hispanic origin, August 2008
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- Figure 84: Occasions or places to drink wine, by region, August 2008
- Household income by race/Hispanic origin
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- Figure 85: Median household income by race and Hispanic origin of householder, 2006
- Figure 86: Choice of retail channel to purchase wine, by region, August 2008
- Influence of family on wine consumption
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- Figure 87: Raised in family that enjoys wine, by age, August 2008
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- Figure 88: Wine and food, by age, August 2008
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- Figure 89: Decision-driving attributes in the purchase of wine, by income, August 2008
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- Figure 90: Occasions or places to drink wine, by income, August 2008
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- Figure 91: Spending on wine, by purpose of consumption, by income, August 2008
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- Figure 92: Domestic table wine consumption by type, by income, February 2007-March 2008
Appendix: Trade Associations
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