Written by Rob McMillanEVP & FounderSilicon Valley Bank Wine DivisionForward3Introduction: Adaptation5Scorecard and Predictions6Demand and Consumption12Premium Wineries21Bottle Pricing30Sales Channels and Varietals35Alcohol, Demographics and Health44Grapes, Bulk Wine and Harvest51Analytics57SILICON VALLEY BANK 2024 STATE OF THE WINE INDUSTRY2Rob McMillanEVP & Founder, SVB Wine Divisionrmcmillan@svb.comRob McMillan is one of the top wine-business analysts in the United States and the author of Silicon Valley Bank’s highly regarded annual State of the Wine Industry Report, described by The New York Times as “probably the most influential analysis of its kind.”With Rob’s decades of experience researching the industry and working with winery clients, his views are sought after and trusted by winery owners, journalists, entrepreneurs and investors. He is a prominent speaker, domestically and internationally, and you will find him extensively quoted in the national, regional and trade press. SILICON VALLEY BANK 2024 STATE OF THE WINE INDUSTRY3Every year, I receive constructive feedback from engaged readers. Sometimes, they write very kind and appreciative notes, while others are critical of the conclusions. They may ask for clarification on a point or permission to use the content, but often they would like more coverage of similarly-sized or similarly-located wineries, or a deeper dive into a particular topic. It's all appreciated. I'm glad the industry engages.During the last few years, we started receiving comments that the report had become too long and was challenging to read. The 2023 report was 102 pages long, which is too long even for me! To address this feedback, we have changed the formatof this year's State of the Wine Industry Report. In subsequent editions, the report will continue to focus on industry issues as they evolve while providing the same data, charts and analysis. However, we will do so more succinctly. The style presented in this report may differ from the future state, as we will consider readers' comments and adjust the format accordingly until we find the right balance.As we publish the report for the 23rd year, we look forward to hearing your thoughts on the new format, pro or con.Rob McMillanrmcmillan@svb.comSILICON VALLEY BANK 2024 STATE OF THE WINE INDUSTRY4It is not the strongest of the species that survives,not the most intelligent that survives.It is the one that is the most adaptable to change.CHARLES DARWINSILICON VALLEY BANK 2024 STATE OF THE WINE INDUSTRY5The maxim that longevity is about the “survival of the fittest" is often used to describe an individual or group's success moving through difficult circumstances, be it challenges to a herd of wildebeests amid a protracted drought or a business tested by changing market dynamics. The latter is what we face today as an industry. How will we respond?Most...
