Wine is an important component of European civilizations, and this cultural tendency is spreading to other regions of the world, including Asian countries. Wine is made in just about every country in the world. Italy, France, Spain, China, and the United States are the world's top wine producers. Consumers' rising consumption of wine has been a primary motivator for the business. Table wine is defined by the Alcohol and Tobacco Tax and Trade Bureau and the Code of Federal Regulations as grape wine with a maximum alcoholic level of 14% alcohol by volume. Dessert wines have an alcohol content of 14% to 24%. Table wine can also be referred to as light wine, light white wine, red table wine, sweet table wine, and so on.
The worldwide wine market was worth USD 417.85 billion in 2020, and it is predicted to increase at a compound annual growth rate (CAGR) of 6.4% between 2021 and 2028. The growing acceptance of wine throughout all age groups, from the young to the elderly, is a crucial factor driving market expansion worldwide. Because of widespread closures and limitations on hotels and restaurants around the world, the COVID-19 epidemic has disrupted the worldwide wine delivery route.
The unexpected epidemic has damaged around 77% of hotels, with turnover falling by 60% throughout the sector, and restaurant sales plummeting by 91% globally by the end of 2020. Meanwhile, there has been a significant shift in consumer purchasing habits. With restaurants, hotels, and pubs closed or operating at reduced capacity, customers have turned to food merchants and internet portals to purchase the product. This shift in consumer behavior has also aided direct-to-consumer sales, with the specialized wine trade reporting some sales growth.
Source-Wine Market Size, Share | Industry Report, 2021-2028 (grandviewresearch.com)
The United States produces more than 800 million gallons of wine every year, making it one of the world's major wine producers. The winemaking business in the United States is centered on the cultivation of the European grape vitis vinifera. Wine production in the United States began in the 16th century when European immigrants created wine from Scuppernong grapes in Jacksonville, Florida.
The ten states that produce the most wine in the U.S., and their share of total wine production, are California(84.39%), Washington (5.053%), New York (3.468%), Pennsylvania (1.538%), Oregon (1.466%), Ohio (0.736%), Michigan (0.319%), Kentucky (0.270%), Vermont (0.269%), and Virginia (0.268%).
California is the greatest wine producer in the United States, accounting for more than 84% of total wine production in the country. California has a total of 4,391 wineries spread around the state, including well-known wine areas like Napa Valley and Sonoma. Sonoma is famed for its Pinot Noir, Cabernet Sauvignon, and Chardonnay, whereas Napa Valley is known for its Chardonnay, Merlot, and Cabernet Sauvignon. If California were a country, it would be the world's fourth-largest wine producer, trailing only France, Italy, and Spain.
Washington State is the country's second-largest wine producer, yet it only produces a quarter of what California does. Washington accounts for slightly more than 5% of total American wine output. Beginning in the 1960s, Washington's wine production increased significantly, and the state now exports wine to more than 40 nations worldwide. The remaining 48 states produce less than 11% of total wine output in the United States.
The worldwide wine business is valued at more than $340 billion. The wine business in the United States generates $49.8 billion in revenue, making it the largest in the world. The United States leads the world in annual wine consumption, consuming approximately 872 million gallons, but it lags far behind in terms of wine consumption per capita, with Portugal, France, and Italy leading the way with 12.8, 10.3, and 9.6 gallons consumed per person per year, respectively.
The wine business is valued at over $340 billion worldwide and is predicted to grow at a CAGR of 4.3% from 2021 to 2028, reaching approximately $457 billion.