U.S. wine market grows to $109 billion

The U.S. wine industry, valued at $109 billion in 2024, is showing early signs of recovery after two years of declining sales volume. According to the latest report from Gomberg-Fredrikson & Associates, a respected wine market intelligence firm established in 1948, wine shipments in the first quarter of 2025 have increased. The data, sourced from the Alcohol and Tobacco Tax & Trade Bureau (TTB), indicates that both California and imported wines contributed to this uptick.

Jon Moramarco, Partner and Editor at Gomberg-Fredrikson and Managing Partner of bw166, explained in an online interview that the positive trend began early in the second quarter of 2024. He attributes this improvement to the completion of necessary inventory reductions by wine businesses, which helped halt the previous downturn. The report shows that wine shipments rose from 127.3 million cases at the end of February 2024 to 134.4 million cases by February 2025. This growth includes modest increases in both domestic shipments and exports.

The report also notes that some U.S. wine buyers increased their purchases of imported wines in 2024 to get ahead of potential tariff changes. This trend has continued into 2025, despite a 10% tariff on European Union wines. Other industry trackers, such as SipSource, have also observed more stable sales figures as of April 2025.

In terms of revenue, government data released by the Bureau of Economic Analysis (BEA) shows that U.S. wine sales reached an estimated $109 billion in 2024, up from $105.4 billion in 2023—a 3.42% increase. Moramarco points out that while inflation and rising wine prices have contributed to this growth, the overall situation is not as negative as some reports suggest. He explains that many other data firms only track a portion of total wine sales, often missing direct-to-consumer channels such as winery tasting rooms, online sales, and events.

Moramarco emphasizes that consumers are still spending slightly more on wine than before, even if growth is slower than in previous years. He believes this is a positive sign for the industry but cautions against assuming that all challenges are over. In 2024, total U.S. wine shipments were down by 4.1%, with imported wines increasing by 8.6% and domestic shipments decreasing by 9.1%. These figures highlight ongoing shifts within the market.

Despite these challenges, there is cautious optimism among industry professionals. The recent BMO Wine Market Report surveyed U.S. wineries and found that 62% expect higher annual sales in 2025, though some are struggling with canceled contracts and unsold grape harvests. The market remains fragmented, with many small producers relying on direct sales rather than traditional retail channels.

Changing consumer behavior is also affecting the industry’s outlook. Older consumers are drinking less wine, and data shows that Generation Z consumes less alcohol than previous generations. These trends present headwinds for all beverage alcohol categories and require producers to rethink their marketing strategies.

Moramarco concludes that while the worst may be over for now, wineries must continue to adapt to evolving consumer preferences and market conditions if they want to succeed in a changing landscape.