Wine Market Proving Recession-Proof

November 24, 2009

2 Min Read
Wine Market Proving Recession-Proof

CHICAGODespite an ailing economy, the majority of American adults will celebrate the holiday season with a nice glass of wine. According to new research from Mintel, 67 percent of survey respondents say they will partake in wine on holidays and special occasions while at home; another 58 percent plan to drink wine at home with dinner on an ordinary night.

The wine market has grown 20 percent from 2004-09 despite the recession; however, shattered consumer confidence caused a 3.2-percent decline during the height of the financial crisis in 2008. As consumers begin to see signs that the worst of the recession is behind them, Mintel forecasts the wine market will stabilize and increase by 2.1 percent in 2009.

"Despite the recent decline, the future of the wine market looks bright, at least for moderately priced segments," said Sarah Theodore, Mintel senior food and drink analyst. "Value wines have helped consumers rethink their perceptions about wine. Domestic wines have proven to be somewhat recession-proof as unpretentious, economy-priced wines are fueling recent sales.

As wine finds its way out of the recession, it might be taking on a new form. The down economy has given impetus to boxed wine. Marketers have an opportunity right now to really play up the benefits of this type of packaging and finally eliminate its 'cheap' image."

Nearly one in five respondents appears to be status-conscious when it comes to drinking boxed wine. Consequently, 35 percent of those aged 21-24 said they would drink boxed wine at home, but not serve it to guests, compared to 19 percent of all ages. In addition, 35 percent of 21-24 year old wine drinkers believe the wine brand they choose reflects their status to friends, compared to only 14 percent of all ages.

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