Wine - NAFTA

The Wine market in NAFTA is experiencing significant growth and development.

Customer preferences: Consumers in the NAFTA region have shown a growing interest in wine, with an increasing number of people incorporating wine into their daily lives. Wine is no longer seen as a luxury item reserved for special occasions, but rather as an everyday beverage choice. In addition, there is a growing preference for wines from local producers, as consumers are becoming more interested in supporting local businesses and experiencing the unique flavors and characteristics of wines produced in their own region.

Trends in the market: One of the key trends in the Wine market in NAFTA is the rise of organic and sustainable wines. Consumers are increasingly concerned about the environmental impact of their purchasing decisions and are seeking out wines that are produced using organic and sustainable farming practices. This trend is driven by a desire for healthier and more environmentally friendly products, as well as a growing awareness of the importance of supporting sustainable agriculture. Another trend in the market is the increasing popularity of wine tourism. People are not only interested in drinking wine, but also in visiting vineyards and wineries to learn about the production process and experience the culture and history of wine. This trend is particularly strong in regions with a long history of winemaking, such as California and Mexico, where wineries are attracting tourists with tastings, tours, and events.

Local special circumstances: In the United States, the Wine market is influenced by the diverse preferences of consumers across different states. California, for example, is known for its high-quality wines and is the largest wine-producing state in the country. The region's Mediterranean climate and fertile soil provide ideal conditions for grape cultivation, resulting in a wide variety of wines with distinct flavors and characteristics. On the other hand, in Mexico, the Wine market is still relatively new and developing. However, with its rich history of winemaking and growing reputation for producing high-quality wines, Mexico is emerging as an exciting player in the global wine market.

Underlying macroeconomic factors: The growth of the Wine market in NAFTA can be attributed to several underlying macroeconomic factors. Firstly, the increasing disposable income in the region has allowed consumers to spend more on premium and luxury products, including wine. Additionally, the growing middle class in countries like Mexico and Canada has contributed to the rise in wine consumption, as more people have the means to afford and appreciate wine. Furthermore, the NAFTA agreement has facilitated the trade of wines between the member countries, leading to increased availability and variety of wines in the market. In conclusion, the Wine market in NAFTA is experiencing growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As consumers continue to embrace wine as an everyday beverage choice and show a preference for local and sustainable products, the market is expected to further expand in the coming years.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.