State of the US Wine Industry 2025 Report

This document is a report on the state of the US wine industry for the year 2025, authored by Rob McMillan, EVP and Founder of Silicon Valley Bank Wine Division. It outlines the current challenges facing the industry, including a significant reset characterized by the first demand-based correction in three decades. The report reviews predictions made for 2024, noting areas of accuracy and inaccuracy regarding market trends, sales growth, and consumer behavior. It discusses the impact of changing consumer demographics, particularly the shift from older to younger wine consumers, and emphasizes the need for the industry to adapt to these changes. The report also presents forecasts for the wine category, indicating expected negative volume growth and the challenges that growers will face in negotiating favorable pricing. Overall, the document aims to provide a comprehensive analysis of the industry's current state and future outlook, encouraging collaboration among industry leaders to navigate the evolving landscape.