Read at Wine Enthusiast
According to Silicon Valley Bank's State of the Wine Industry Report, the wine industry is struggling with declining sales, overproduction, changing market dynamics, and a lack of interest from young adults. Sales volume and value of wine have been decreasing for the past few years, and experts predict that spirits sales will surpass wine sales next year. Despite the negative trends, Rob McMillan, founder of the Wine Division at SVB, believes that these findings are an opportunity for the industry to adapt.
"Change" is a central word in this year's findings. According to the report, a comprehensive summation of research by SVB bolstered by data collected from over 500 American wineries, the wine industry continues to face dire sales, overproduction, changing market dynamics and a worrying lack of interest from young adults.
Consumption of wine has been declining, with only 58% of consumers over 65 preferring wine over other alcoholic beverages. Overproduction is also a concern, leading to a lack of value sales growth for the wine industry. However, McMillan remains optimistic and believes that the industry can adapt to the changing landscape.
Despite the numbers, McMillan hopes the findings of this year's report are a catalyst for change. "We are being presented with the opportunity to adapt," he told Wine Enthusiast. "And if we look at the information clearly we should have a pretty good idea on how to do that."