US is No.1 wine market
Analyst Jon Fredrikson this week told an industry gathering in the US that Americans consumed 13 per cent of all wine produced globally.
US production rose 2 per cent last year to help meet the demand, Mr Fredrikson told the Unified Wine and Grape Symposium. But bulk wine imports from Argentina, followed by Chile and Australia, also helped.
New Zealand had boosted its planted acreage and was expected to become a bigger player, especially in sauvignon blanc.
Wine consumption is decreasing in France and Italy, so foreign producers are targeting the US market.
Overseas wines now account for 35 per cent of sales in the US.
Mr Fredrikson said consumers were driven to cheaper imports by grape shortages in the US in 2010 and 2011 that resulted in higher prices for domestic wines. Even the Charles Shaw label - known as "Two Buck Chuck" - was forced to raise prices this month, by US50¢ (48¢) a bottle.
Frequently Asked Questions about this Article…
Yes. According to analyst Jon Fredrikson, Americans now consume about 13% of all wine produced globally, making the US the largest wine market.
US wine production rose about 2% last year to help meet growing domestic demand, as reported at the Unified Wine and Grape Symposium.
Overseas wines account for roughly 35% of sales in the US market.
Bulk wine imports into the US have been led by Argentina, followed by Chile and Australia, which have helped fill demand.
Grape shortages in the US during 2010 and 2011 pushed up domestic wine prices, driving many consumers to choose cheaper imported wines.
Even the value label Charles Shaw (known as 'Two Buck Chuck') was forced to raise its price this month by US$0.50 (about 48¢).
Wine consumption is decreasing in France and Italy, prompting foreign producers to target the US. At the same time New Zealand has boosted planted acreage and is expected to become a bigger player in varieties such as sauvignon blanc.
The US becoming the largest wine market, a 2% rise in domestic production, and a 35% share for imported wines highlight strong consumer demand and active international supply. For investors, these trends suggest continued opportunities across US producers, bulk import channels from Argentina, Chile and Australia, and expanding producers like New Zealand—while grape shortages and price pressure can affect margins and pricing.
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