White Wines on the Rise in US

Sales of white wines in the United States have shown a slight increase, according to the latest data from SipSource, while red wines remain dominant in the market. Between November 2022 and October 2023, Pinot Grigio and white blends were the only categories to achieve revenue growth, highlighting an intriguing trend in a market that has generally seen declining numbers.

SipSource data, which focuses on wines priced above $11, indicates that demand for Pinot Grigio and white blends has risen. While these categories represent a small fraction of the total market, their growth is noteworthy during a year when almost all other wine varieties experienced declines. Apart from a modest 1.2% rise in Sauvignon Blanc sales, these two groups were the only ones to show growth, as other categories lost momentum.

The most significant declines were observed in categories like "Other Reds," which fell by 17.4%, followed by Merlot with a 13.3% drop, rosé with a 12.8% decrease, and red blends, which were down by 11.2%. Key market staples like Cabernet Sauvignon and Chardonnay were not immune to this trend, recording declines of 4.5% and 4.7%, respectively. Pinot Noir also saw a significant reduction. However, these three varieties, along with red blends, still account for more than 80% of the U.S. wine market by value.

The increase in sales of Pinot Grigio and white blends might encourage producers and distributors to expand offerings in these categories. Nevertheless, their current market size remains small. To illustrate, the combined revenues of these two categories would need to increase fivefold to match the current revenue levels of Chardonnay alone, a growth that appears unlikely in the short to medium term.

The sharp decline in "Other Reds," a category that includes lesser-known native varieties, also challenges the notion that consumers are actively seeking alternatives to Cabernet Sauvignon and Merlot. The steep drop in this segment suggests that this perception may not align with the reality of market preferences.

SipSource, a data system developed by Wine & Spirits Wholesalers of America (WSWA), provides a detailed view of the market by tracking over 225,000 products across more than 450,000 retail and hospitality locations. While its data covers approximately 70% of the total wholesale distribution volume in the United States, trends within the remaining 30% might add further context. However, SipSource's figures offer a reliable snapshot of the current market landscape.

While the future of the market remains uncertain, red wines continue to dominate consumer preferences in the United States, even in a year marked by overall declines. Emerging categories such as Pinot Grigio and white blends draw attention for their potential, but data shows that their current market impact remains limited.