Competition slows wine industry growth
The growth rate of the wine industry—on a strong climb earlier in the decade—is continuing its upward trend, but beginning to slow down, according to the recent WineTAB report from market analyst Technomic Inc. that tracked more than 1,250 wine brands and 125 suppliers.
In 2014, the report indicates total wine volume increased 1 percent. Projections for 2015 and future years show a similar pace of industry expansion.
"Primary factors influencing the industry's performance include slowed per capita consumption growth and the proliferation of brands and styles, as well as competition from spirits and beer for consumer attention and occasions," said Donna Hood Crecca, senior director at Technomic Inc. "Consumers are highly engaged with wine and learning more about it every day—we also see consumer trade-up happening—but the number of choices they face at the restaurant table and in the retail store can be almost overwhelming."
According to Technomic, the fastest-growing wine brands reveal a range of variety of styles, varietals and regions appeal to consumers. Consumers also prefer products with intriguing backstories, philanthropic connections, unique production methods and convenient packaging.
More on WineTAB can be found here.