The Silicon Valley Bank has released its annual State of the Wine Industry Report. Now in its 16th year, the report shows the growth in premium wines targeting ever more consumers.
Wines priced between $12 and $25 a bottle will grow in volume in 2017, while those less than $9 should decline.
The report forecasted a sales growth of between 9 and 13 percent for the premium wine segment in 2016, down from 14 percent in 2015. Moreover, a strong and strengthening U.S. Dollar will encourage imports at all premium price levels.
Concerning the regions, Oregon and Washington should continue to see high interest in vineyard acquisitions for premium and luxury wine production while tens of thousands of additional acres of vineyards will be permanently removed from California’s Central Valley.
The report, highly regarded among vintners for its insight, expects to see bottle prices rise by between 4 and 8 percent above the $10 price point and both volume and price to drop below $8 a bottle.
According to the State of the Wine Industry Report, Millennials are more open to world wines compared with baby boomers, and at the same time, their palate evolution is beginning to affect the lower price range of premium sales.