Wineries
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 11,620 wineries in the US produce and sell a wide range of wines. Wines can be broadly categorized into three groups: still wine, often referred to as table wine; sparkling wine, effervescent wines like champagne; and dessert wine, such as brandy. Most wineries operate their own vineyards for grape production, but may purchase a large percentage of their needs from independent growers.
Industry Consolidation
The wine industry has seen an increase in the consolidation of vineyards and wineries, particularly among smaller, family-owned operations.
Increased Regulation And Taxes
The wine industry is subject to strict, frequently changing federal and state regulations for virtually every aspect of operations, from production to advertising.
Industry size & Structure
The average winery employs 4-5 workers and generates $2.2 million in annual revenue.
- There are about 11,620 wineries in the US, employing about 58,000 employees, and generating sales of about $24 billion.
- The US wine-making industry is characterized by thousands of small, family-owned wine growers and wineries, together with a few very large, sometimes publicly held, wine conglomerates.
- The four largest wineries in the US -- E&J Gallo, The Wine Group, Trinchero Family Estates, and Constellation Wines -- generate about 41% of the industry's revenue.
- The top wine-producing states are California, Washington, and New York. In California, about 615,000 acres are devoted to wine grapes, growing over 110 varieties of grapes and producing an average of 3-4 million tons of grapes annually.
- The average winery relies on seasonal contract workers for many growing and production-related jobs.
- US winemakers produced about 752 million gallons of wine in 2022, the lowest total in a decade.
- US export sales of wine exceed $1.2 billion annually to more than 150 countries worldwide.
Industry Forecast
Wineries Industry Growth
Recent Developments
Dec 29, 2024 - Falling Prices, Weak Demand
- According to the latest US Bureau of Labor Statistics data, producer prices for wineries declined by 0.7% in November compared to a year ago after rising 2.7% in the previous November-versus-November annual comparison. Employment by breweries, wineries, and distilleries grew 2.3% year over year in October. Employment by the industry is rising along with the increase in the number of wineries, which topped 11,650 in 2024, and is somewhat seasonal, peaking during harvest season and the holidays.
- Vintners hoping 2025 will bring an end to declining wine sales are likely to be disappointed, but the rate of decline in sales may slow, Wine Business reports. “It appears we’re seeing a slowing of the declines, but the market hasn’t flattened out or started to recover yet,” Jon Moramarco, founder of the market research firm bw166 and partner and editor of Gomberg, Fredrikson & Associates, which tracks the US wine market, told WB in December. The wine industry continues to struggle with excess supply and weak consumer demand. In 2023, total domestic wine market volume measured 377 million 9 liter cases, and it appears total market volume will have declined by up to 5% by the end of 2024, according to bw166. Still, value may increase by 1% this year to remain close to 2023’s total of $107 billion due to inflation and modest growth among premium brands.
- While wine sales are falling overall, sales of non-alcoholic (NA) wines are experiencing significant growth, the Wine Industry Advisor reports. In 2023, the NA wine market was estimated at approximately $2.26 billion and is expected to expand at a compound annual growth rate of 7.9% between 2024 and 2030, according to an analysis from Grand View Research. The low-alcohol wine movement is also growing, with an expected expansion of 3%, according to research from global drinks data firm IWSR. Moreover, more than three-quarters (78%) of people who purchase non-alcoholic beverages also purchase drinks with alcohol, according to NielsenIQ. Growing interest and sales of NA and low-alcohol wines present wineries with new opportunities as more consumers look to reduce or eliminate alcohol from their diets amid health and wellness concerns.
- A surplus of grapes combined with an increase in imports and dwindling demand for wine has resulted in a glut of uncontracted grapes, AgWeb reported in August. The surge in unharvested grapes that still don't have a buyer is stressing grape producers and stoking fears the oversupply could ultimately force some farmers out of business. The current grape glut is the first time in over a decade that farmers have faced uncontracted grapes on vines as wineries cancel contracts, according to AgWeb. Global wine consumption began tapering off around 2017 and 2018, but the pandemic hid the problem. Now, with baby boomers growing older and younger people consuming less alcohol, retailers are stocking less wine. "It's pushed the inventory back upstream, basically to the wineries, who then turn around and cut grape purchases to the growers,” explained Stuart Spencer, executive director of California’s Lodi Winegrape Commission.
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