Wine sales continue to grow despite recession

Mintel senior food and drink analyst, Sarah Theodore, said that economy-priced wines have been fueling recent sales.

Over the past few years the US wine market has shown healthy growth, expanding 20 per cent between 2004 and 2009, but last year the recession brought growth to a sharp halt.

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Recovery ​

Wine sales fell 3.2 per cent during the height of the financial crisis in 2008 but the latest Mintel figures suggest the market is on back on track.

While the growth figures themselves may be back to pre-recession levels, the market may now take a new direction. Penny pinching consumers who switched down to cheaper wines may permanently change their perceptions of value wines.

“Value wines have helped consumers rethink their perceptions about wine,”​ said Theodore. “Domestic wines have proven to be somewhat recession-proof as unpretentious, economy-priced wines are fuelling recent sales.”​

Boxed wines​

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This may be good news for US wine growers, as well as manufacturers of boxed wines that generally fall into the value bracket. “The down economy has given impetus to boxed wines” ​said Theodore.

A recent Mintel found that nearly one in five respondents would drink boxed wine at home but would not serve it to guests. To grow the boxed wine category further the industry will have change consumer perceptions and eliminate status anxiety.

In the context of increasing boxed wine sales, Theodore said marketers have an opportunity to really play up the benefits of this type of packaging and finally eliminate its cheap image.