Two Graphs Explain the Wine Market

Below is a graph on yearly volume consumption in the U.S wine market followed by a graph on dollars spent. 

Click on the graphs to enlarge 

 

Bottom line: We are buying less, but spending more. The top reasons are:

• The affluent consumer that buys expensive wine is not as affected by inflation. Those of us buying inexpensive and mid-priced wines feel the price increases more. The under-$20 wines are taking the biggest hit in volume sales. 
  
  
• The lower end of the wine market is hit the hardest by the material and production costs increases. Consumers are trading up from low-priced to mid-priced wines. They are finding little difference is price between the cheap stuff and the often discounted better quality mid-range wine. The mantra is "drink less, but drink better."
  
  
• The obvious reason for buying less is that wine is more expensive. Low- and mid-range wines have increased in price, though as not nearly as much as food or fuel has. The largest increase in wine prices is in the $50-up segment.The $100-up luxury wines have increased the most and have huge profit margins.This makes buying $20 to $50 wines the smart move.

Graphs are from the 2026 BMO Wine Market Report