Posted November 06, 2018 07:19:00 The U.S. wine industry is growing at a brisk clip and has become more profitable in the last few years than at any time since the 1930s, according to a new report.
The report, which analyzed data from the Bureau of Labor Statistics, found that the wine industry grew at an average annual rate of 3.5 percent during the decade, the best performance since the 1960s.
While it’s still a small share of the U.s. wine market, it’s an impressive achievement given the fact that it’s a big part of the industry’s business model.
For example, the industry is estimated to produce about 1.6 billion barrels of wine annually, or about 10 percent of the nation’s overall wine production.
But the industry also produces a large share of its revenue through retail sales, where it accounts for about 12 percent of all wine sales in the country.
“The wine industry has grown by leaps and bounds, and the growth rate of that industry is phenomenal,” said Mark Dyer, a senior fellow at the nonpartisan Center for American Progress, which commissioned the report.
“The U.N. data points to a big shift in wine consumption, which is a very welcome development.
It’s been a decade since the recession and the wine sector is booming, and we’re seeing the fruits of that growth.”
The report, released Tuesday by the Labor Department, is the first to look at the wine trade since it was created in 2004.
Wine experts say the numbers paint a different picture than the traditional statistics that paint a rosy picture of the country’s wine industry.
Dyer, who previously served as chief economist at the National Retail Federation, said the data shows that consumers are getting more engaged in wine, particularly those younger than 65, and that those consumers are willing to pay a premium for wines that are made in-house.
Although the U and Canadian wine sectors are the two largest wine-producing regions, wine sales are still far smaller than they were just a decade ago.
As a result, wine prices have been on the rise and consumers are taking on a bigger share of their total wine consumption.
On average, the U of S wine industry shipped about 7 million barrels of U. S. wine in 2019, up from 3 million barrels in 2018, the report said.
However, as of 2020, U. of S. exports of wine had declined to 3.2 million barrels, down from 5.3 million barrels a year earlier.
In total, the wine supply chain in the U., Canada and Mexico was responsible for more than $3.2 trillion worth of wine, the study said.
The wine supply chains also accounted for nearly $1.9 trillion in overall wine sales, or more than 20 percent of total wine sales.
The report found that, as a result of the growing popularity of wine in the marketplace, the sector has been increasingly focused on new technologies and methods of production, including using a wide range of chemical techniques to reduce the risk of malolactic fermentation.
That has allowed the industry to improve its processes and improve efficiency, but it’s not the only reason for the growth.
More than 60 percent of wine produced worldwide is now grown in California, which has been a leader in producing wine in-home, a practice that has been gaining popularity over the past decade, Dyer said.
California has seen an increase in its wine production in-store and in restaurants, and it is also the largest producer of imported wine in North America, Dyers said.
As a consequence, U of T has seen its sales increase by about a third in the past five years.
And it’s working to make its products in-country, Dieser said.
The U of M’s wine school is the largest in North American, and is also a leader when it comes to producing in-the-home wines, he said.
It is the only university in North Americans with a graduate degree in winemaking.
Because of that, the university is able to produce more in-season wines in-houses.
Some of the wine school’s wineries are also using the techniques to produce smaller, more affordable wines in larger, smaller batches.
Among the other big wineries that are now using these technologies is Sauternes-Dillon in New York, which produces some of the best wine in Canada, Dierks said.
In addition, many U.K. wineries have switched to in-process wine making, which requires smaller batches of grapes and smaller storage tanks, said Mark J. Smith, vice president for operations at Sauterno-Dumont in London.
The research was funded by the Department of Agriculture.