February 9, 2015

After two decades of growth, John Gillsepie of Wine Opinion is bucking the general trend, releasing a report stating that based on generational changes and economic indicators that are mimicking those of 1993, (the last time the wine industry saw a decline in sales), the U.S. wine industry could be approaching a turning point. Based on surveys and market research, Gillsepie found that between 1994 and 2007 U.S. wine consumption grew by 2.5% per year, however since 2008, consumption grew at 2% or less per year. The report also states that there has been a decline in consumption by ‘occasional wine drinkers’ because of more choices of craft beers and spirits on the market. However, the biggest factor affecting the future of the U.S. wine industry is generational. The baby boomer generation (77 million) is retiring and reaching an age when wine consumption declines, while the millennial generation (70 million) is just reaching drinking age – but, male millennials are drinking less wine than females of their own generation or people of any older generation. This shift is mainly driven by the economy. Silicon Valley Bank recently forecast a 15% growth in wine sales for wines over $20 in 2015, but young consumers will not have the economic clout to support this trend, opting instead for craft beers and ciders which have price points below $9 and have more successfully marketed their products to younger buyers than wine businesses have. To read further about economic and generational indicators for the future of wine sales:

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