Market research
Sales of Californian wine in the US last year increased ahead of volumes, according to figures released this week, as consumers traded up to higher-priced offerings.
Californian wine accounts for the more than half of the wine sold in the US
Shipment value climbed in 2017 by 3% year-on-year to US$35.2bn, with growth predominately coming from wine priced above $10 a bottle, Californian trade body the Wine Institute said yesterday. Volumes in the same period inched up 1% to 241m nine-litre cases.
The sales rise put California ahead of the total US wine market, which in 2017 grew 2% in value including imports. The state accounts for the majority of wine sold in the US, taking up 60% of the market by volume. Nine out of ten US wine bottles sold abroad are from California.
Despite the increases, the Wine Institute said the Californian wine industry faces increasing challenges from "rapid and broad" changes in the retail and consumer environments. Changes in demographics have seen falling disposable incomes among younger consumers and a slowing in consumption from ageing Baby Boomers.
"Marketers need to find the right balance in attracting these diverse sets of consumers," said Jon Moramarco, editor of the Gomberg-Fredrikson Report, a monthly insight into the Californian wine industry. "E-commerce is increasingly having an impact on expanding consumer access to wine, and wineries are working on several digital platforms where wine is being sold."
In March, the Wine Institute released figures on US wine exports, which suffered a 19% drop to the EU.
California's Wine Exports in 2017 - Click here for the facts
Sectors: Wine
