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Top Growth Opportunities: Wine in the US

Top Growth Opportunities: Wine in the US

Summary

Amongst the top ten wine market opportunities, the US ranks fourth in terms of per capita expenditure in US$, smaller than Australia, Canada, and Singapore. The per capita expenditure on wine products in the US recorded growth at 2.4% CAGR during 2011-2016 owing to high disposable incomes coupled with Americans’ desire for quality products encouraging them to spend on premium wines.

US wine market grew at a CAGR of about 3% during 2011-2016 and its market value increased from over US$33 Billion in 2011 to over US$39.5 Billion in 2016. However, with the gradual replacement of retired older consumers, who represent the largest wine consuming age group, by young and older adults - with their general preference for other alcoholic beverages such as beers and spirits - wine consumption in the US is expected to register slow growth during the forecast period. Consequently, the market is forecast to record a CAGR of about 2.5% during 2016-2021, and is expected to cross US$45 Billion by 2021.

United States wine market shows a relatively slow but healthy growth in both the historic and forecast periods. This suggests the demand for wine in the US is stable, but the market performance would hugely depend on the stability of the economy, which remains unforeseeable under Trump's presidency and diplomatic style. Wine export is likely to be affected as a result of the US's recent withdrawal from the TPP agreement, as well as diplomatic issues with some of the US’s biggest trading partners, such as Russia and China.

Growth rate of premium wines is expected to slow down due to population dynamics, with the gradual replacement of retired baby boomers, who are more inclined towards premium wines by lesser well-off millennials who prefer low-end wine products and have a higher affinity towards other alcoholic beverages, such as beer and spirits. Hence, the per capita expenditure is forecast to record a slower CAGR of around 1.9% during 2016-2021, offering modest growth opportunities in future.

The report Top Growth Opportunities: Wine in the US, identifies the key demographic groups driving consumption, and what motivates their consumption. When combined with an in-depth study of market and category dynamics, readers are able to identify key opportunities, and what they need to do in order to target them. The report uses a unique method of quantifying consumer trends to highlight the degree of influence they have on consumption within the category. The report also identifies the most important trends within the market and shows whether beliefs over what influences consumer behavior within the category are accurate.

In particular, this report provides the following -

  • Key consumer demographic groups driving consumption within the US market. The figures showcase the number of times consumers of specific ages and gender consume Wine, as well as identifying whether these demographic groups over consume in the category (i.e. they account for a higher proportion of occasions than the proportion of society they represent overall).
  • A study of market value and volumes over 2011-2016 for US, supplemented with category, brand and packaging analysis that shows the current state of the market, and how it will evolve over the 2016-2021 period.
  • The degree of influence that the 20 key consumer trends identified by GlobalData have on Wine consumption volumes, with granular analysis on the extent that degree of influences varies between gender and age group.
  • Insight into the implications behind the data, and analysis of how the consumer needs will evolve in the short-to-medium term future.
  • Examples of international and US-specific product innovation targeting key consumer needs.
Companies mentioned in this report: E&J Gallo Winery, Constellation Brands, Inc., Franzia Wines, Trinchero Family Estates, Treasury Wine Estates Vintners Ltd., Casella Wines PTY Ltd., The Wine Group, Banfi Products Corp, Almaden Vineyards, Bronco Wine Co.

Scope
  • The US Wine market is expected to grow more slowly during 2016-2021 than 2011-2016.
  • Over the past five years US consumers have traded up for wine. This is evident from the higher growth in value than volume across the three wine categories.
  • Overall, the private label threat remains low to big brands. But smaller brands risk losing market share to private labels.
  • Women and consumers aged 55+ are driving the growth of Wine in the US.
Reasons to buy
  • This report brings together consumer analysis and market data to provide actionable insight into the behavior of US's Wine consumers.
  • This is based on GlobalData's unique consumer data, developed from extensive consumption surveys and consumer group tracking, which quantifies the influence of 20 consumption motivations in the Wine sector.
  • Category, brand, and packaging dynamics are also examined. This allows product and marketing strategies to be better aligned with the leading trends in the market.


1. Introducing a top growth market for wine
Top 10 global growth opportunities scores 8-
Top global issues
Assessment against global strategic issues
GlobalData’s strategic issues map
Predicted future issues for the global sector
Reward and risk assessment
Opportunity score - overview
Consumer spending trends - peer group comparisons
Political, Economic, Social, and Technological: Analysis
Enablers and inhibitors of growth
Rewards and opportunities for growth
Summary of the market
2. Market insight - identifying the opportunities to move into
Market growth by category
Value growth of the market 23-
Volume growth of the market 25-
Level of premiumization by category
Category analysis - key drivers of change
3. Retail and distribution insight - key channels and retailers driving growth
Wine retail channel share
Key Retail Channel trends
Routes to market 32-
Drivers of change in the sector
4. Company and brand insight - the competitive landscape defined
Category fragmentation
Company and brand strength
Private label penetration
Brand share by leading supplier
International and domestic brand analysis
Company and brand strength summary
5. Consumer insight - who, what, when, where and why
Strategic issues map 43-
Key consumer driver implications
Key consumers trends
Consumer groups 47-
Key Health & Wellness trends
Consumer trends summary
6. Product and packaging insights
Key Product Insights
Trends and strategic issues - other notable product trends
Key product innovation case studies 54-
Key Packaging Insights
Trends and strategic issues 57-
Product launch key takeouts
7. White spaces and innovation opportunities - space to move into
Growth segments to target
Consumer spaces to target
Segment opportunities
Price dynamics 64-
Product launch key takeouts
Key recommendations 67-
8. Appendix
List of Tables
Visualization of 10 countries growth opportunities
Visualization of 10 countries growth opportunities (continued)
Reward and risk assessment
Market value and split, 2011-2021
Winners and losers by category, value, 2016-2021
Volume growth by category, 2011-2021
Winners and losers by category, volume, 2016-2021
Key consumption volume shares by consumer group, 2016
Key consumption motivators by category, 2016
Key consumption motivators by category, 2016 (continued)
Top categories by volume and CAGR, 2011-2016
Average price change by brand, 2016
List of Figures
Map of top opportunity markets
Map of top global issues
Global issue web
GlobalData’s strategic issues map
Average consumer spend, peer group comparisons, 2011-2021
Market value and split, 2011-2021
Value growth by category, 2011-2016 and 2016-2021
Value market growth by category, 2011-2021
Winners and losers by category, volume, 2016-2021
Value and volume growth by category, 2011-2021
Fragmentation by category, 2011-2016
Private label penetration and CAGR, 2011-2016
Cumulative value share by brand, 2016
Penetration of Health and Wellness claims by category, 2016
Packaging materials volume share, 2016 & 2021
Packaging closure materials volume share, 2016 & 2021
Projected CAGR for top five categories by value, 2016-2021
Price change by category, 2016

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