State of the Wine World - 2016 Statistics

State of the Wine World - 2016 Statistics

Global Overview

Wine shipments to the U.S. from all production sources — California, other states and foreign producers — grew to 399 million cases in 2016, up 3% from 2015, with an estimated retail value of nearly $60 billion. The U.S. has remained the world’s largest wine market by volume since 2010. California’s 238 million cases shipped within the U.S. in 2016 represent a 60% share of the U.S. wine market.

According to Nielsen measured U.S. food store volume, Chardonnay remains the largest varietal of all wine types accounting for 20% share of the cases, followed by Cabernet Sauvignon (15%), Red Blends including Sweet Reds (12%), Pinot Grigio/Gris (9%), Merlot (7%), Pinot Noir (6%), White Zinfandel/Blush (6%), Moscato/Muscat (5%) and Sauvignon Blanc (5%). The largest gains for whites came from Sauvignon Blanc with Pinot Grigio following well behind. Red wine growth was driven by Red Blends, Cabernet Sauvignon and Pinot Noir. From a smaller base of 1% share, Rosé is on fire with a 35% volume gain, but more than 60% on dollars. Total shipments of sparkling wine and champagne to the U.S. reached 25.6 million cases in 2016. Up 14% from the previous year, the category is
showing very strong growth with Prosecco a key growth driver. Sparkling wines/champagne accounted for a 6% share of the U.S. wine market. California wine shipments to the U.S. reached an estimated retail value of $34.1 billion in 2016, up 4.6%. The state shipped an all-time high of 238 million cases to the U.S. in 2016, up 2% from the previous year.

Data from the Golden State 

California wine sales to all markets, including shipments to the U.S. and exports, also set a record of 285 million cases in 2016. 

“Consumers worldwide recognize the high quality of California wines from diverse regions across the state,” said Robert P. (Bobby) Koch, Wine Institute President and CEO. “As consumers in the U.S. and around the world continue to trade up to premium wines, California is ideally positioned.” 

“California wines in the U.S. market have increased from 191 million cases shipped in 2006 to 238 million cases in 2016,” said Jon Moramarco, founder and managing partner of BW166, who purchased The Gomberg-Fredrikson Report with partners last year. “The growth trend has been driven by population, which is up more than 12% over the last decade, and by the fact that baby boomers, traditionally the large population segment of frequent wine consumers, have been joined by millennials aged 21-38 who are also driving the growth in wine consumption,” Moramarco explained.

“The estimated retail value for wine was calculated with an updated methodology that uses a wide variety of government, private, and other statistical data that have not historically been available, such as the direct-to-consumer sales report and Dept. of Commerce data,” Moramarco continued. “Consumer expenditures had been growing at a 6.1% annual
rate as opposed to the historical estimates of 5.5% previously published, so
the retail value was reset for more recent years.

Pacific Northwest sees Wine Industry Growth

Closer to home, Washington State, the second largest wine producer crushed 270,000 tons of grapes beating the old record by nearly 19%.Quality was also high as near perfect growing season and harvest time weather added good character to the mix.

There are now over 900 wineries in Washington State supported by 50,000 acres of vineyards that add well over $2 Billion to the state’seconomy. Beer volumes are down 4.4% over the last ten years but the craft beer segment keeps getting a larger share.