Silicon Valley Bank Predicts Consumers Will Pay Slightly More For U.S. Wine In 2017

Silicon Valley Bank’s State of the Wine Industry Report shows strong market conditions overall and signals adjustments in consumption patterns and segment prices:
Wines sold between $12 and $25 will grow in demand as will high-end luxury wines with an established brand. Sales growth is predicted between 10% to 14% for the premium wine segment.
The confluence of better retail conditions, strong consumer demand and good supply will collide to deliver improving industry performance. Slightly higher per capita consumption can be expected if economic conditions continue to improve despite retiring, wine-loyal baby boomers being replaced by less affluent millennials who are ambivalent about their alcoholic beverage of choice.
Additional findings and predictions for 2017: Import growth in lower premium price points is expected, due to a strong and strengthening U.S. dollar, foreign in-country marketing support and willing millennials.
Millennials are beginning to affect the lower price range of premium sales.Millenials are most visible in the $8 to $11.99 red blend category, but they will gradually move away from blends and into varietal wines or imports as their incomes improve.