Uncorking the Truth: U.S. Wine Consumption Declines Despite Market Value Growth

Variety of Wine

​Over the past five years, the U.S. wine industry has faced notable challenges, marked by a decline in both consumption and sales volumes. This downturn is influenced by shifting consumer preferences, health considerations, and economic factors.​

Declining Consumption Trends

Per capita wine consumption in the United States has steadily decreased. In 2019, the average consumption was 2.94 gallons per person, which declined to 2.68 gallons by 2023—a reduction of approximately 8.8%.  Total wine consumption mirrored this trend, dropping from 971 million gallons in 2019 to 899 million gallons in 2023.​

Shifts in Consumer Demographics

The demographic landscape of wine consumers is evolving. While Generation X has increased its market share, Millennials have shown a decline in wine consumption. Notably, Generation Z has not embraced wine to the same extent as previous generations, with only 6% consuming the beverage as of 2023.  Additionally, a significant portion of adults aged 45 to 64 reported abstaining from wine altogether.​

Market Value and Sales Dynamics

Despite declining consumption volumes, the market value has experienced fluctuations. In 2024, the U.S. wine market was valued at approximately $75.27 billion and is projected to grow at a compound annual growth rate (CAGR) of 8.1% from 2025 to 2030.  This anticipated growth is attributed to factors such as premiumization and evolving consumer preferences.​

Premiumization and Consumer Spending

A notable trend is the shift toward premium wines. While total wine volumes declined by 2% in 2022, the premium-and-above segment grew by 6%.  Consumers are opting for higher-quality wines, indicating a willingness to spend more per bottle despite overall reduced consumption.​

Future Outlook

The U.S. wine industry faces a complex landscape shaped by changing demographics, health perceptions, and economic conditions. While challenges persist, opportunities exist in catering to the premium market segment and adapting to evolving consumer behaviors. Producers may need to innovate and diversify their offerings to align with the preferences of younger generations and health-conscious consumers.

Works Cited: IWSR, Grand View Research, Statista, Wine Institute, terrainag.com