U.S. Wine Market Size is Estimated to Witness 6.8% CAGR till 2030

The U.S. wine market size was valued at USD 63.69 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2022 to 2030.

The U.S. Wine Market size is expected to reach USD 115.03 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 6.8% from 2022 to 2030. The rising worldwide supply of grapes, increasing consolidation among producers, distributors, and retailers, and a shift in consumers’ drinking patterns are acting as major drivers for the market. Increasing penetration and adoption of the product in developing countries are also acting as a major catalyst for market growth.

The U.S. has been producing wines for centuries, and wine products have become a popular dinner addition in the country. Wine sales have surged across the country as a result of fresh innovation in flavor, color, and packaging adaptations. Nonetheless, to meet the high demand, a significant amount of land has been transformed into vineyards to meet the need for grapes that would be prohibitively expensive if acquired from outside the U.S.

The table wine product segment held the largest revenue share in 2021. The availability of table wines through various off-trade routes and their preferability among the vast population as an economical option for regular consumption is fueling the segment growth. Being inexpensive and easily accessible through retail, table wines often find preference among new consumers of wine. With the changing lifestyles, there has been a shift in alcohol consumption-from hard liquor to mild alcoholic beverages such as beer, wine, and seltzers. This trend is a key factor boosting the growth of new wine consumers and consequently plays a role in the rising demand for table wine.

The on-trade distribution channel segment is expected to register the fastest CAGR from 2022 to 2030. The COVID-19 pandemic drastically affected the growth of this segment owing to the lockdown restrictions and shutting down of pubs, clubs, bars, etc. Further, international tourism also came to a standstill caused by the strict lockdown measures across the world, which resulted in decreased wine consumption through the on-trade channel. The U.S. market for wines is fragmented with the presence of international players and a few regional players.

Related Press Release@ U.S. Wine Market Report

U.S. Wine Market Report Highlights

• The table wine product segment dominated the market in 2021. The high penetration of this segment is due to the lower prices of table wines as compared to other wines
• The sparkling wine product segment is projected to register the fastest CAGR of 7.7% from 2022 to 2030. The largest consumers of sparkling wine produce a majority of wine domestically, leaving the U.S. as one of the most important import markets
• The off-trade distribution channel segment held the largest revenue share of over 80.0% in 2021. Offering a variety of products at lower prices as compared to on-trade channels has increased the popularity of retail counters across the U.S.