The wine industry in the US is in a deep decline. Indeed, some experts are saying that it may be experiencing an “existential threat”.
In the U.S. wine sales are down 6 percent in 2024 compared to 2023, while the products in question are also less and less in demand in bars, restaurants and businesses that hold the license to sell it.
The drop in demand comes as an August Gallup poll shows that more than 4 in 10 Americans think alcohol is harmful to health. Wine is not the only beverage that has seen declining sales: these include beer and liquor.
The wine industry received a boost in 2020, when the lockdown for Covid caused an increase in consumption, given in part by the fact that people were forced to stay indoors. But that spike soon proved to be a fleeting phenomenon. “The baby boom generation embraced wine,” industry scholar Mike Veseth said, “We imagined that the generations that followed would keep doing that, but they haven’t.”
As also explained by analysts, when they have to consume alcohol, young people prefer to drink premixed drinks. For many teens, wine, which is sold in bottles and may require the use of a corkscrew and glasses, is “less practical” to sip. “It’s not that they dislike wine,” said Christian Miller, research director for the Wine Market Council, “It’s that they are drinking a much wider variety of other things.” According to Gary Decker, owner of Vinomania in Syracuse, New York, another factor contributing to reduced demand for wines has been the legalization of marijuana, which is seen by the younger generation as a preferable way to “feel good.” Decker added that, “Pot is taking a big chunk out of it because it’s just another part of the party puzzle.”
Meanwhile, the numbers regarding the sale of other beverages–first and foremost beer–continue to grow. The latter generated more than $500 million in revenue in 2023.
Among the factors driving the wine industry’s declining sales is cost. The price of 1 liter of wine today is around $14. A figure that not all Americans are willing to spend. “People’s budgets are just really tight these days,” say industry experts, “So wine is feeling the crunch.”
However, while the industry is at a perilous crossroad, experts are not surrendering to the trend. Mike Veseth, author of several books and The Wine Economist newsletter, said, “This is not business as usual…Although the industry will continue, there are big adjustments needed for that to happen.”
California winemaker Martha Stoumen, who owns Martha Stoumen Wines, sees wine consumption as a fundamental part of lifestyle. “Is it really time to retire an 8,000-year-old human beverage? Really? Are we gonna let it go extinct? That seems like we might want to think about that as a culture.”
If there is any bright spot in the bleak picture, it is that despite the challenges faced by the U.S. wine industry, the demand for European wines remains largely unaffected. This has been attributed to the high quality and reputation of European wines–particularly the French and Italian–as well as the diverse range of options available to American consumers.
