The Changing American Wine Industry

Big changes may be happening with the American wine business.

Covid-19 and the Recession

Purchasing habits have changed. Much has moved to e-commerce with companies like Amazon getting crazy rich. Also, what people are buying has changed. Netflix is at record viewership. E-Books reading, like Kindle, has surged. 

Questions:

• How much of this is permanent? Will it go back to pre-Covid levels or maybe just drop a bit?
• When will the economy recover? This isn't a normal recession. Will luxury purchases like travel explode once restrictions lift or will many people be cautious? Many wineries depend on visitors; many depend on restaurant sales.

Climate Change

Here's the interesting part: For a long time the wine biz was only looking at temperature changes and was starting to base what to plant and how to prune thinking of warmer weather. Now wildfires are part of the equation. 

The fires themselves may not be enough to cause major disruption, but smoke taint might. The smoke from a large fire can travel hundreds of miles and affect grapes.

Many consumers are concerned

Wine Buyers

The California wine boom that started decades ago has pretty much always depended on the Baby Boomer generation. They are aging out and won't be a major factor for much longer. Will younger generations pick up the slack?  

From my perspective in winery tasting rooms it's the consumers in their 40s and 50s that are the sweet spot for premium wine purchases. The youngest Boomers are in their late 50s. Gen-Xers make up the 40s and rest of the 50s age group.

Click on to enlarge. From statista.com