Silicon Valley Bank's latest report reveals a pivotal moment for the wine industry, marking its first demand-based correction in 30 years. The forecast projects total wine category sales with negative volume growth between -3% and -1% in 2024.
Significant challenges are emerging from shifting demographics, with Baby Boomers exiting the market and younger consumers showing reduced wine preferences, according to the report. White wine and prosecco represented a bright spot in the report, each showing positive growth rates by volume. White wine now has better sales growth rates than red wine.
The premium segment's top quartile demonstrated resilience with 22% average revenue growth. Industry experts recommend targeted marketing to the 30-45 age group as a potential strategy to mitigate market decline and accelerate recovery.
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