DtC Wine Shipping Channel Experiences Market Correction with First-Ever Decline in Both Volume and Value

Although we skilled our first-ever decline in each quantity and worth … DtC maintained its share of a contracting U.S. off-premise retail wine market.

On the heels of 2020 and 2021, two consecutive years of chart topping income numbers for the direct-to-consumer (DtC) wine transport channel, 2022 represents a market correction from pandemic circumstances, in addition to the results of an inflationary economic system, in line with the newest Direct-to-Consumer Wine Shipping Report from Sovos ShipCompliant and Wines Vines Analytics.

Although quantity dropped by 10.3% and the worth of shipments fell 1.6% from 2021, DtC shipments of wine in 2022 saved tempo with 2021 shipments by capturing 12.0% of the off- premise gross sales of home wines, basically matching the biggest ever share of home off-premise gross sales recorded by the DtC transport channel (12.1% in 2021). The first-ever declines in each quantity and worth ought to be understood in relationship to the pandemic-induced market circumstances of 2020 and 2021, in addition to the weird financial local weather of 2022.

“After the all-time excessive of $4.2 billion in worth that the DtC transport channel skilled in 2021, the declines seen in 2022 weren’t that stunning,” stated Andrew Adams, Wine Analytics Report editor at Wines Vines Analytics. “Consumers had been spending rather more time in eating places and bars because the on-premise sector rallied.”

The common value per bottle (APB) shipped jumped considerably for a second yr in a row, coming in at $45.16, a 9.7% common enhance throughout the channel. And whereas this quantity have to be understood in relation to the numerous reductions that occurred on the peak of the pandemic, evaluating the 2022 APB to the pre-pandemic baseline, it has nonetheless elevated greater than 10% since 2019 – greater than double the mixed will increase from the three years earlier than 2019.

While declines in shipments from 2021 hit each area, wineries of all sizes and almost each varietal, the highest-priced wines escaped important quantity declines in 2022, with wines priced at $100 or extra rising their quantity by 7.8% and people with an APB of greater than $200 hovering in quantity by greater than 20% in 2022. These will increase helped the channel keep its share of the off-premise home gross sales, at the same time as wines below $30 dropped in quantity by 17.5%, persevering with tendencies from 2021 and in distinction to the unrivaled will increase in shipments these lowest-priced wines skilled in 2020.

“Although we skilled our first-ever decline in each quantity and worth for the DtC transport channel in 13 years of reporting in the marketplace, DtC maintained its share of a contracting U.S. off-premise retail wine market,” stated Larry Cormier, vp, basic manager, Sovos ShipCompliant. “Inflationary pressures all through the provision chain imply that wineries can now not provide the sorts of incentives they did through the pandemic, once we noticed two consecutive years of record-breaking worth leads to the channel.”

Other notable findings and tendencies described within the 2023 Direct-to-Consumer Wine Shipping Report embrace:

  • Rest of California continues to outperform: The Rest of California area noticed the smallest drop in quantity in 2022, dropping solely 3.0% from 2021, whereas the worth of DtC shipments dropped barely in any respect (-0.1%). This is the second yr in a row that the Rest of California area considerably outperformed the general DtC transport channel.
  • Cabernet Sauvignon reveals most power in a down yr: Cabernet Sauvignon shipments confirmed relative power in an in any other case difficult market. Cabernet noticed will increase within the worth of shipments (+5.7%) and smaller-than-average decreases within the quantity shipped (-7.2%) from 2021.
  • Kentucky wine lovers proceed to say sure to authorized transport: In its second full yr of being open for wine shipments after a change within the state’s legal guidelines, Kentucky noticed the quantity of its shipments enhance by 18.1% and the worth of these shipments develop by 49.6%.
  • Top states stay: The prime 5 states by quantity of shipments remained as they had been in 2021. California residents, by a large margin, obtained essentially the most shipments, with 30.81% of the whole quantity of wine going to shoppers on this massive wine-producing state. California was adopted by Texas, New York, Florida and Washington.

The Direct-to-Consumer Wine Shipping Report is an annual collaboration between Sovos ShipCompliant and Wines Vines Analytics, inspecting cargo tendencies from wineries to U.S. shoppers. The proprietary information included is compiled from an algorithm measuring complete DtC shipments based mostly on tens of millions of nameless direct transport transactions filtered via the ShipCompliant system and paired with Wines Vines Analytics’ complete information on U.S. wineries, leading to essentially the most correct depiction of the DtC wine transport market.

To obtain the complete Direct-to-Consumer Wine Shipping Report, go to

About Sovos ShipCompliant

Sovos ShipCompliant has been the chief in automated alcohol beverage compliance instruments for greater than 15 years, offering a full suite of cloud-based options to wineries, breweries, distilleries, importers, distributors and retailers to make sure they meet all federal and state laws for direct-to-consumer and three-tier distribution. ShipCompliant’s options scale back danger, reduce the burden of compliance, speed up bringing merchandise to market and allow income progress. With 60+ companion integrations, Sovos ShipCompliant leads a strong ecosystem of know-how partnerships, enabling highly effective complementary options. For extra info, go to and observe us on LinkedIn and Twitter.

About Wines Vines Analytics

The Wines Vines Analytics staff maintains the wine trade’s most correct databases and gives data-driven evaluation, information, insights and reviews to assist purchasers develop and handle their companies. For extra info go to

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