One billion dollars

posted by philip in Snooth, Wine Industry

I’ve talked about the size of the wine industry before, but what’s been exciting me recently is how the direct-to-consumer market (online stores, wine clubs etc.) has exploded. Up 58% last year, and finally topping $1 billion.

The driving factors? Further deregulation, allowing out of state wineries to deliver to your door, and strengthening consumer demand. This is great news. There’s no reason why less than 5% of the wine market should be online. I know wine is fragile and heavy, but Fedex are efficient and careful. Plus, with a scarcity of wine specialists in many towns, wine fans are forced to travel far and wide looking for specific wines. There’s obviously a more efficient solution.

There’s a reason why the US online wine industry is less developed than Europe and it isn’t due to lack of demand.

Luckily, the wheels have been set in motion. The laws are changing. The largest European wine retailers have already begun to set up shop stateside. This is forcing the US companies to up the ante. The next few years promise to be very interesting.

I’d rant some more, but we just signed another two data providers yesterday and we have work to do!