The direct-to-consumer (D2C) wine market has seen a continued decline in volume and value in the first half of 2023, according to the “2023 Direct-to-Consumer Wine Shipping Mid-Year Report” released today by Sovos ShipCompliant and WineBusiness Analytics. The report, which examined shipment data from U.S. wineries, found that overall volume of wine shipped decreased 7% in the first half of 2023, to 3.4 million cases, while overall value slipped 2% for the period to $1.9 billion. The average bottle price rose 5% to $46.12.

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This decline in volume follows a similar drop last year from the 2021 peak of 4.1 million cases, but still represents an 11% increase from the pre-pandemic 2019 figure of 3.1 million. Mid-size wineries, producing 1,000 to 4,999 cases per year, saw the largest decline in value shipped at 13%.

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“At the midway point of 2023, the D2C shipment channel may not be hitting the highs of previous years, but it’s far ahead of where it was pre-pandemic and remains a dynamic and vital sector of the overall U.S. wine market,” said Andrew Adams, an editor with WineBusiness Analytics, in a statement. “And while wineries continue to contend with inflation, the D2C market remains the most effective way to engage with their best customers and create new ones in the intensely competitive total beverage alcohol market.”

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Washington state saw the largest regional increase in value and volume gains year-over-year, with a 19% increase in value and 7% increase in volume. The state also saw the largest regional increase in average bottle price at 11%, followed by California's Sonoma and Central Coast regions at 10% and 9%, respectively.

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California remained the clear destination leader for D2C wine sales, with a 29% share of sales volume, but the state saw a 14% drop in volume growth for the first half of the year. California’s Central Coast, however, saw a 1% increase in value growth in shipments from the region for the first half of the year, compared to 2022.

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According to the “2023 Direct-to-Consumer Wine Shipping Mid-Year Report” released today by Sovos ShipCompliant and WineBusiness Analytics, the direct-to-consumer (D2C) wine market has seen a continued decline in volume and value in the first half of 2023. The report found that overall volume of wine shipped decreased 7% in the first half of 2023, to 3.4 million cases, while overall value slipped 2% for the period to $1.9 billion. The average bottle price rose 5% to $46.12.

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Mid-size wineries, producing 1,000 to 4,999 cases per year, saw the largest decline in value shipped at 13%. Andrew Adams, an editor with WineBusiness Analytics, said in a statement that “At the midway point of 2023, the D2C shipment channel may not be hitting the highs of previous years, but it’s far ahead of where it was pre-pandemic and remains a dynamic and vital sector of the overall U.S. wine market.”

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Overall, the D2C wine market has seen a decline in volume and value in the first half of 2023, but the market is still far ahead of where it was pre-pandemic. Wineries continue to contend with inflation, but the D2C market remains the most effective way to engage with their best customers and create new ones in the intensely competitive total beverage alcohol market.

Sources: https://www.mediapost.com/publications/article/387770/d2c-wine-market-continues-decline.html