Wine industry generates $32.3bn revenue in 2012: Technomic report
The wine industry has reported 3.6% growth in revenue to $32.3bn, and 2.2% growth in volume to 345.1 million 9l cases in 2012 despite shortage of supply and slow economy, according to the 2013 WineTAB report from Technomic, part of its Trends in Adult Beverage (TAB) series.
Domestic table wines were mainly responsible for the growth of wine market. They accounted for 67.9% of the total wine volume and their volumes grew by 2.1% in 2012, compared to 2011 figures.
Among different table wines, two domestic table wines, Franzia WineTaps from The Wine Group and Barefoot Cellars from E&J Gallo, led the wine market.
While Franzia WineTaps volume declined by 8.1%, Barefoot Cellars volume grew by 15.4%.
Technomic senior director Donna Hood Crecca said domestic table wines offer something for every taste preference, lifestyle and budget.
"Today's consumer understands that American wine producers offer everything from eclectic high-end selections to premium boxed wines to fun, flavored specialty wines," Crecca added.
The growth was also driven by introduction of new wines in the market. Around 240 new table wines were introduced in the market in 2012, among which more than half were domestic.
Even imported table wines reported 1.6% growth and accounted for more than 20% of total wine volume.
Technomic research director Eric Schmidt said although the overall rate of growth in 2012 was slower than in 2011, wine is competing effectively with spirits and emerging categories such as craft beer, and keeping consumers engaged and increasingly interested.
"New product introductions and evolving flavor profiles enhance wine's relevance for both at-home consumption and occasions in bars and restaurants, particularly among young adult consumers," Schmidt added.