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The University of Oregon’s annual Vineyard and Winery Census confirmed a national decline in wine demand, with a drop of 2.6% in wine sales in 2023 from the previous year- the first drop in a decade.
Oregon Wine Industry Facing Challenges As Sales Drop
Wine producers, one of Oregon’s signature industries, delivered $932 million in sales during 2023, the second-highest value on record following a decade of growth with an annual increase of almost 10%.
Oregon’s sales figure won’t be available for several months, but the trade group SipSource reported a 6% decline in 2024 wine sales nationwide. There may be reason for concern among Oregon wine farmers.
Last week, Rob McMillan, vice president at Silicon Valley Bank, wrote in an industry report, “The wine industry is undergoing a significant reset, marking the first demand-based correction in three decades.”
Some analysts indicate that younger generations are shifting to premixed cocktails. Marijuana use is also growing as an alcohol alternative and an increasing number of consumers are choosing to stay away from alcohol, recognizing its profound impact on long-term health.
McMillan indicated that consumer preferences can be fleeting and suggested that a concerted and coordinated marketing effort could develop a new generation of wine consumers. He sees the drop in growth as an opportunity to change consumers’ minds about wine, especially in the 30–45-year age brackets.
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