Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Wine & Spirits

Category Focus: Wine

Premiumization trends lifts super-premium, luxury wine performance

On-premise, pent up demand propel Champagne and other sparkling wines

By Chloe Alverson, Associate Editor
super-premium, luxury wine

Image courtesy of Really Good Boxed Wine

January 16, 2023

Netflix’s sketch comedy show “I Think You Should Leave with Tim Robinson” often relies on awkward and surreal humor. One sketch from season two pokes fun at “Shark Tank,” with actress Patti Harrison playing an investor who gained her fortune through a lawsuit after being sewn into the pants of the Charlie Brown balloon at the Thanksgiving Day parade. In her introduction, she hilariously reveals she “can’t stop having wine” and that she purchases the best-tasting wines. 

When it comes to real world wine consumption, consumers cite less comical motivations to purchase good wine, helping the beverage alcohol category remain competitive. 

Grace Wood, senior analyst at New York-based IBISWorld, notes that, while there were declines in per capita alcohol expenditure, wine sales have increased during the past year. She says this signals that consumers “are turning toward wine and away from other alcoholic beverages.” 

“Direct-to-consumer shipping laws concerning wine have continued to loosen, boosting online sales of wine,” Wood says. “Wine accounts for more than 50% of online beer, wine and liquor sales.”

Wines that shine

Known as a fizzy, celebratory drink, experts note that sparkling wine has become a fan-favorite among many consumers. 

Data from London-based IWSR shows that, within the total sparkling wine market in the United States, volumes grew 12% from 2020 to 2021. 

“Pent-up demand to celebrate weddings, holiday gatherings and other personal milestones after the restrictions of the COVID-19 pandemic helped accelerate sparkling wine growth to double digits in 2021,” says Adam Rogers, research director at IWSR drinks market analysis. “In the U.S., on-premise is also helping to bolster sparkling wine’s popularity, for example, through the brunch occasion.” 

Mike Wyatt, insights consultant at Chicago-based Information Resources Inc. (IRI), also shares his take on how sparkling and Champagne wines are contributing to the wine market. 

“Sparkling/Champagne are attracting new consumers, resonating with existing consumers as evidenced by increased spend per consumer, and ultimately contributing a disproportionality high share of growth,” Wyatt says. “The positive contribution has been most notable in the $13-$35 price tiers. … With regard to type/flavor, Prosecco has been a standout.”

Top Table Wines (Individual Brands)
  DOLLAR SALES % CHANGE VS. PRIOR YEAR CASE SALES % CHANGE VS. PRIOR YEAR
Barefoot $575,490,415 -6.7 8,179,091 -10.2
Josh Cellars Super Premium $402,207,313 11.5 2,585,585 9.2
Sutter Home $395,883,672 -4.7 5,326,772 -7.6
Franzia Box $357,817,648 -4.3 11,817,907 -7.7
Woodbridge by Robert Mondavi $325,697,954 -6.9 4,778,447 -5.7
Category total* $11,730,300,121 -3.9 122,722,931 -7.6
*Includes brands not listed.

Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, mass merchandisers, gas and convenience stores, military commissaries, and select club and dollar retail chains for the 52 weeks ending October 30, 2022.

IBISWorld’s Wood echoes similar sentiments in regards to the sparkling wine segment. 

“Sparkling wine is growing in popularity, with Champagne and Prosecco in particular, experiencing substantial growth in sales,” she says. “Younger consumers are especially fond of sparkling wines.”

In terms of the varying segments of wine, Wood notes that rising per capita disposable income has pushed consumers to purchase more premium and super-premium wines. However, in 2022, as per capita disposable income declined, consumers were likely to have purchased more sub-premium wines, she says.

IRI’s Wyatt notes that super-premium and luxury wines have performed the best, aligning with the premiumization trend from the past few years.

“Essentially, wine consumers continue to seek quality, either perceived or real, and are willing to pay a premium for it, which is driving pockets of growth within wine, regardless of overall wine category trends,” he says. 

IWSR’s Rogers echoes similar sentiments, noting that premium wines have been shining for a while, and consumers don’t mind the prices they pay for it. 

 

Woodbridge Wines ready-to-drink cans of white wine and soda
Last year, Woodbridge Wines introduced a line of ready-to-drink cans of white wine and soda.
Image courtesy of Constellation Brands

 

“Premium-and-above priced wines have been outperforming other prices segments for many years, following a long-term premiumization trend across beverage alcohol in general,” Rogers explains. “Core consumers of higher-end wines tend to stay loyal to the segment, regardless of price increases or economic headwinds.”

As for wine varietals, Wyatt notes that consumers are opting for traditional white and lighter reds.

“Specifically, Sauvignon Blanc within whites and Pinot Noir within reds,” he explains. “This is not necessarily surprising, since beverage alcohol consumers overall have also gravitated toward seltzers, spritzers and lighter beers, which suggests healthy indulgence is a prevalent theme.”

IBISWorld’s Wood notes that Chardonnay was the most popular varietal of wine in 2022 and Cabernet Sauvignon was “trailing closely behind.” She suggests that the popularity of these varietals is because they both come at a variety of price points and pair well with an array of foods. 

Top Sparkling Wine/Champagne (Individual Brands)
  DOLLAR SALES % CHANGE VS. PRIOR YEAR CASE SALES % CHANGE VS. PRIOR YEAR
La Marca $270,107,432 12.9 1,447,067 10.5
Korbel $135,652,541 -6.8 842,364 -10
Cooks $111,838,066 -3 1,251,449 -3.6
Andre $107,493,066 -5.6 1,277,917 -10.6
Stella Rosa $86,828,064 -9.7 606,310 -9
Category total* $1,734,663,797 -1.8 11,474,855 -5
*Includes brands not listed.

Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, mass merchandisers, gas and convenience stores, military commissaries, and select club and dollar retail chains for the 52 weeks ending October 30, 2022.

For wine packaging, Wood says that demand for packaging that is both sustainable and convenient has increased.

“Smaller packaging, like canned wine, has gained favor among younger drinkers,” she explains. “Producers are also using lighter packaging materials to lower distribution costs.”

IRI’s Wyatt also notes that convenience is important for wine consumers. 

“Packaging innovations and expansions have created more usage occasion options for consumers with an emphasis on convenience and freshness longevity, such as cans and boxes respectively,” he says. “New item launches in cans and the subsequent sales have tapered off somewhat in the past year, but box sales have been strong, especially the 3.0 liter and 0.5 liter sales.” 

Looking ahead, the wine market could be impacted by a potential recession. Wyatt says that spending on discretionary categories like wine could negatively be impacted.

“However, wine has not been as susceptible to sales declines as many other categories amid the softened economy and consumer price increases in the past year,” he notes. “The real challenge for wine currently is that many beverage alcohol consumers have shifted to spirits and RTDs.”

IBISWorld’s Wood suspects that consumers will purchase lower-margin wines during a recession. 

“This would be a slight reversal of the rising premiumization trend that has occurred in recent years within the broader alcohol market,” she says. “While wine is relatively resistant to economic downturns, since consumers trade down rather than withhold purchases, wine sales would likely fall amid an economic recession.”


KEYWORDS: eCommerce premiumization red wine sparkling wine white wine wine sales

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Chloe alverson

Chloe Alverson is Beverage Industry’s associate editor, writing and editing for the magazine about all sorts of beverages and companies. She earned a Bachelor of Arts in Journalism from Michigan State University and resides in Metro Detroit.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Alternative Drinks
    By: Lauren Sabetta
  • Younger generation displays unique habits when it comes to beverage consumption

    Generation Z shakes things up in beverage

    Experts share that Gen Z is changing the standard on what...
    Beverage News
    By: Chloe Alverson
Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

halfday sodas

Beverage-makers turn to fiber, prebiotics and more to support consumer needs

smoothie

Opportunities abound for relaxation, stress-relief beverages

Mountain Dew Mango Rush

Mountain Dew, Little Caesars launch Mountain Dew Mango Rush

Vote for your favorite new product

Have your say in what makes it to the top this month!
Vote for your favorite new product and help us celebrate excellence.


VOTE NOW!

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • PATH Water

    Health and wellness trends continue to boost bottled water performance

    See More
  • Charles Smith Band of Roses Wine - Beverage Industry

    Premiumization trends impact wine market

    See More
  • O'Neill Vintners & Distillers

    Where are super-premium wine, spirits headed?

    See More
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing