IWSR Report Reveals Regional Variations in U.S. Wine Consumption

The latest IWSR US Navigator report, released on Wednesday, October 10, reveals key insights for understanding and penetrating the U.S. wine market, highlighting regional variations, price segment performance, and seasonal consumption patterns. The report, which is the only monthly data source that covers the U.S. alcoholic beverage market at a state and price level since 2019, shows significant differences in wine consumption across states, with important implications for producers' strategies.

New York stands out as one of the main markets for wine producers, with a consumption index of 113, indicating that the state consumes 13% more wine than the national average. This contrasts with neighboring states like Pennsylvania, which has an index of 75, and Ohio, with an index of 68, meaning these states consume 25% and 32% less wine than the national average, respectively. According to Marten Lodewijks, president of IWSR's U.S. division, this disparity suggests that wine producers often focus on New York, potentially overlooking other markets that might seem less attractive initially. However, a deeper analysis by price segments and seasonality reveals opportunities that could be tapped into in these underappreciated states.

The report indicates that wine consumption in New York is concentrated in the Standard price category, with an index of 168, while the Premium segment has an index of only 80. Meanwhile, in Ohio, the Premium segment performs relatively better, with an index of 87 compared to the 68 of the total wine market, suggesting that this type of wine is more accepted in the state. Additionally, in Pennsylvania, the Ultra-Premium wines show an index of 155, surpassing the average consumption of this category in many other states, pointing to a potential niche market for high-end wines.

These insights are supported by market share data by volume. In 2023, the Premium wine segment represented 39% of the total wine market in Ohio, compared to 22% in New York. Although Ohio's total wine market is only 35% the size of New York's, the Premium wine market in Ohio is 64% the size of New York's Premium market, making it a much more attractive target for Premium wine producers who might have overlooked this state based on overall consumption figures.

Another important factor highlighted by the report is the seasonality of consumption. In New York, Premium wine consumption follows a similar pattern to Standard wines during peak demand periods, such as the end-of-year holidays, meaning that both segments grow proportionally without a significant change in the Premium wine market share. However, in Ohio, Premium wine outperforms Standard wine during the critical season of November and December, suggesting an opportunity for wineries to focus their promotional efforts during this period. A similar trend is seen in Pennsylvania at an even higher price range, with Super-Premium wines outperforming Premium wines during the same season, although with a smaller consumer base.

These nuances are crucial for wine brand owners looking to expand in the U.S. market. Analyzing regional behavior in combination with price segment performance and overlaying it with seasonal trends can uncover key opportunity areas that might otherwise go unnoticed if only general figures are considered. As Lodewijks notes, states that initially appear unpromising could offer significant growth if examined more closely, taking into account factors such as seasonality and specific consumer preferences in each price category.