SVB - State of the Wine Industry Report 2023

The State of the Wine Industry Report 2023 by SVB highlights the challenges and trends in the wine industry. The report notes that bringing forth critical findings can be challenging as the industry is made up of people who are inclined towards positive news and this is rooted in the farming community and propagated by winemakers who see every vintage as the best of the decade. However, the report also highlights that who in this business wants to read about industry problems and hence a report that only says "Everything is fine. Nothing to see here." would not be read by anyone. The report mentions that in 2018, consumers were leaving the lower price segments in favor of better-quality offerings, but after more than 20 years of straight-line upward growth trends, total volume growth is leveling out. Premiumization is still the dominant trend, so volume drops in lower-priced generics are part of the explanation for flattening volume, but in a more recent development, even premium wine growth is slowing.