Silicon Valley Bank Releases 23rd Annual State of the US Wine Industry Report

NAPA, Calif., Jan. 18, 2024 /PRNewswire/ -- Silicon Valley Bank (SVB), a division of First Citizens Bank, today released its 2024 State of the US Wine Industry Report. Widely regarded as the leading source for market trends in the premium wine sector, the annual report provides an assessment of the industry, analysis of current market conditions and forecasts for the year ahead. The report is based on proprietary research and survey data collected from more than 500 wineries across the US.

"Now more than ever, changing market dynamics favor wineries that adapt to a changing demand environment," said Rob McMillan, Silicon Valley Bank Wine Division founder and author of the report. "Solutions to changing demand should include collaboration across the industry, but absent that, finding increased efficiencies in marketing and sales will become critical for success. Future demand improvement will rely on the industry's ability to attract new and younger consumers, take market share from other beverage and cannabis producers, and counter overproduction that will likely lead to widespread discounting in out-of-favor brands and price points."

The 2024 report examines the latest consumption, pricing, sales data, and the most promising wine industry marketing strategies. It provides an in-depth analysis on the key trends impacting the US wine industry: 

• While full-category wine sales by volume will be down for a third consecutive year,
• 2023 year-end premium wine sales will likely end with another year of positive value growth.
• Tasting room visitation was lower in the premium segment in 2023, but improvement is expected in 2024.
• Direct-to-consumer sales will grow again modestly in 2024.
• Conditions for overproduction in the total wine category are present, but inventory supply is more balanced in the premium segment.

Silicon Valley Bank will host a live webinar to discuss the annual report and state of the wine industry today at 9:00 a.m. PST. The panel will include McMillan, Jennifer Locke, CEO Crimson Wine Group; Paul Mabray, Industry Innovator; and Ed Thralls, SVP Professional Services, Enolytics. Register for the live webinar here. A replay of the discussion will be available after the event.

Founded in 1994, SVB's Wine Division specializes in commercial banking for premium wineries and vineyards and the industries that support them. With the largest team of commercial bankers dedicated to the wine industry of any bank nationwide, SVB's Wine Division has offices in Napa, Sonoma and Oregon serving clients in the fine-wine producing regions of California, Oregon and Washington.

Read the full 2024 State of the Wine Industry report here: www.svb.com/trends-insights/reports/wine-report.

About Silicon Valley Bank

Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world's most innovative companies and investors. SVB provides commercial and private banking to individuals and companies in the technology, life science and healthcare, private equity, venture capital and premium wine industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights and connections. SVB's parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA ), is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Learn more at svb.com

SOURCE Silicon Valley Bank