American wine consumption drops 6%

On Wednesday, April 23, 2025, Vinetur published its report titled "Analysis of the US Wine Market: Situation in 2024, Evolution and Future Prospects". The study offers a detailed overview of key figures from 2024, comparing them with data from 2023, and outlines projections for producers, distributors, and exporters. According to the document, while the United States continues to be the world's largest wine market in terms of value, the year 2024 was marked by a noticeable decline in consumption, a sharp reduction in domestic production, and uneven results in international trade.

Total wine consumption in the United States dropped by about 6%, reaching 33.3 million hectoliters. This decline also reduced per capita consumption from 4.7 to 4.5 liters. The report attributes the drop to several factors, including an aging consumer base, weak engagement among young adults, increasing health awareness, higher commodity prices, and growing competition from alternatives such as ready-to-drink cocktails, craft beer, and non-alcoholic beverages.

Wine production fell more sharply, down 17.2% compared to 2023, with an estimated total of 21.1 million hectoliters. This decrease was mainly driven by a smaller grape harvest in California, where growers faced adverse weather conditions and intentionally reduced yields in response to oversupply and weakening demand. Vineyard acreage also declined slightly, standing at 385,000 hectares. The total number of wineries decreased modestly, mostly due to the closure of virtual brands, while the number of federally licensed physical wineries remained stable.

Foreign trade data shows that wine imports held steady at 1.226 billion liters, but increased in value by 1.6%, reaching over $6.78 billion. The rise in value was driven by higher demand for bottled and sparkling wines, especially from France and Italy, which together accounted for 70% of total import value. U.S. wine exports rose 10% in volume, according to figures from the International Organisation of Vine and Wine (OIV), but export value barely surpassed $1.24 billion due to a lower average price per liter. Key export destinations included Canada, the European Union, and the United Kingdom.

The report highlights the ongoing generational shift in wine consumption. Baby Boomers, long the core of the wine market, are reducing their purchasing, while Generation Z accounts for just 7% of regular wine consumers. Millennials show more openness to experimenting with different wines and are willing to pay for quality, but tend to consume wine less frequently and demonstrate less brand loyalty. Broader trends toward moderation and economic caution are also pushing some consumers to reduce alcohol intake or choose lower-alcohol options.

Excess inventory remains a significant challenge. Previous overproduction, coupled with declining demand, has led to stockpiling, price discounts, and harvest reductions. Some wineries have made strategic adjustments to cope with these pressures. Despite the excess supply, the producer price index for wineries increased slightly in 2024, although this rise did not compensate for losses in lower-cost wine segments.

Still wines, which make up 85% of total volume, experienced the most pronounced decline in sales. White and rosé wines showed better performance, while sparkling wines remained relatively stable, supported by an 11% increase in imports. Off-trade retail continues to dominate wine sales, but on-trade sales in bars and restaurants rose 7.5%, indicating a post-pandemic recovery.

Looking ahead to 2025, the report projects a stabilization of the market at lower levels than those seen before the pandemic. Wine sales by volume are expected to continue decreasing, with value growth limited to premium segments. The report concludes that the U.S. wine industry is undergoing a structural transformation, driven by demographic changes, competition from alternative beverages, and new demands for sustainability. The sector will need to adapt significantly in order to remain competitive.