Raise your glass: Rising demand will continue to contribute to industry expansion and boost revenue

Rising consumer spending and higher per capita expenditure on alcohol have supported demand growth for many different wine varietals, and the industry has expanded to meet growing demand. Much of this growth has occurred as younger adults have been purchasing more wine than traditional premium beer or liquor. Over the next five years, faster growth in California's minimum wage is expected to force many wineries to restructure their capital and labor expenses in an effort to remain profitable. Nonetheless, rising demand will continue to contribute to industry expansion, causing revenue to increase over the five years to 2022...read more.

Industry Statistics & Market Size
Revenue
$15bn
Annual Growth 12-17
1.3%
Forecast Growth 17-22
Profit
Employment
30,908
Businesses
1,551
What Our Customers Say

Industry Threats & Opportunities

  • California’s rising minimum wages will place some pressure on industry establishments
  • Consumers are opting for less-expensive wines, hindering industry revenue growth
  • Demand for wine is forecast to increase although at a slower rate
  • Industry Report - Industry Investment Chapter

    The Wineries industry in California has a high level of capital intensity due to the industry's reliance on complex machinery used during the wine production process. For every dollar spent on labor, IBISWorld estimates that industry operators will spend $0.44 on capital in 2017. Wineries must invest in various equipment used for crushing, fermentation, filtering, storing, testing and bottling the products that they produce. Although capital resources are purchased infrequently, these costs still account for a significant portion of industry revenue, though the amount varies depending on the size and operations of the player. For instance, value (i.e. low...purchase to read more.

    Additional Insights for the Wineries in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wineries in California Industry are

  • Establishment of export markets
  • Establishment of brand names
  • Supply contracts in place of key inputs
  • IBISWorld analysts also discuss how external factors such as Per capita expenditure on alcohol and Consumer Spending in California in the Wineries in California industry impact industry performance..

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    What is the Wineries in California Industry?

    The Wineries industry consists of companies engaged in at least one component of the winemaking process. This process includes growing and harvesting grapes, crushing and pressing grapes into unfermented wine and then fermenting the wine. The industry also makes wine blends, brandies and wines from other fruit sources.

    Industry Products
  • Chardonnay
  • Cabernet Sauvignon
  • Merlot
  • Pinot Grigio
  • Pinot Noir
  • Sauvignon Blanc
  • Zinfandel, Riesling and other blends
  • Rosé and sparkling wines
  • Industry Activities
  • Growing wine grapes
  • Blending wines
  • Bottling wines
  • Marketing and retailing wines
  • Manufacturing brandy, vermouth and cider
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita expenditure on alcohol
  • Consumer Spending in California
  • Number of adults aged 20 to 64
  • Per Capita Alcohol Consumption in California
  • Excise tax on wine

  • Current Performance
  • Rising globalization
  • Shifting demographics
  • Economic and environmental factors
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand growth subsides
  • Industry landscape shifts
  • Table: Wineries in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wineries in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wine & Spirits Wholesaling
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Beer, Wine & Liquor Stores
  • Golf Courses & Country Clubs
  • Hotels & Motels
  • Casino Hotels
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Bars & Nightclubs

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing
  • Fruit & Nut Farming
  • Glass Product Manufacturing
  • Printing
  • Wineries

  • Products & Services
  • Zinfandel, Riesling and other blends
  • Chardonnay
  • Cabernet Sauvignon
  • Rosé and sparkling wines
  • Merlot
  • Pinot Grigio
  • Pinot Noir
  • Sauvignon Blanc
  • Chart: Wineries in California Industry Products and Services Segmentation

  • Major Markets
  • Wholesalers
  • Supermarkets & grocery stores
  • Convenience stores
  • Exports
  • Restaurants, hotels & other food service providers
  • Liquor Stores
  • Chart: Major Market Segmentation for the Wineries in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Wineries in California

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wineries in California Industry

  • E. & J. Gallo Winery Constellation Brands Inc. The Wine Group Inc. Bronco Wine CompanyTreasury Wine EstatesTrinchero Family Estates Inc.
  • Table: E. & J. Gallo Winery - financial performance
  • Table: Constellation Brands Inc. - financial performance
  • Table: The Wine Group Inc. - financial performance
  • Table: Bronco Wine Company - financial performance
  • Table: Treasury Wine Estates - financial performance
  • Table: Trinchero Family Estates Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wineries in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wineries in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita expenditure on alcohol (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    American Viticulture Area (Ava)
  • Federally-recognized counties or defined areas that have been designated as superior wine grape-growing regions.
  • Baby Boomers
  • The demographic of Americans born between 1946 and 1964, accounting for a major proportion of the population.
  • Generation X
  • The demographic of Americans born roughly between 1965 and 1984, who follow the baby-boomer generation.
  • Generation Y
  • The demographic of Americans born from roughly 1980 through the 1990s who follow Generation X.
  • Sulfites
  • A compound that naturally occurs in grapes that can prevent wine from spoiling when used in larger quantities. Sulfites are a commonly-known allergen.
  • Varietal
  • A wine made from a single grape variety.
  • Viticulture
  • The cultivation of grapevines.
  • Winery
  • A place where wine is made.
  • Why buy this report?

    The Wineries in California industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wineries in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wineries in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wineries in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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