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DtC Wine Shipping Declines in the Face of Industry Headwinds


News provided by

Sovos ShipCompliant

Jan 23, 2025, 05:30 ET

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The 2025 Direct-to-Consumer Shipping Report from Sovos and WineBusiness Analytics showed a challenging year for DTC wine shipping as the overall wine market downturns.
The 2025 Direct-to-Consumer Shipping Report from Sovos and WineBusiness Analytics showed a challenging year for DTC wine shipping as the overall wine market downturns.

Sovos and WineBusiness Analytics annual Direct-to-Consumer Wine Shipping Report shows drop as overall wine market downturns

ATLANTA, Jan. 23, 2025 /PRNewswire-PRWeb/ -- With declining trends across the wine and overall beverage alcohol markets, the direct-to-consumer wine shipping channel faced a challenging year in 2024, according to the latest Direct-to-Consumer Wine Shipping Report from Sovos ShipCompliant and WineBusiness Analytics. The total volume of DtC shipments dropped to 6.4 million cases, down 10% from 2023, and the value of these shipments fell 5% to $3.94 billion— the steepest per metric drop since the report's inception in 2010.

"The downturn in DtC shipments in 2024 left no category untouched," said Andrew Adams, Wine Analytics Report editor, WineBusiness Analytics. "Influenced by broader economic, cultural and social factors, the DtC channel lost the relative insulation it once had. Despite these challenges, most U.S. wineries will continue to depend on the DtC distribution channel to reach consumers."

"Volume growth across the beverage alcohol industry is expected to experience continued constraint, and the DtC declines we're seeing are a reflection of the overall market," said Alex Koral, regulatory general counsel, Sovos ShipCompliant.

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One silver lining is the continued slowdown in the rate of average bottle price increases (6%), which declined from 7% in 2023, 9% in 2022 and 12% in 2021. This downward trend reflects a broader easing of inflation. Still, the 6% year-over-year increase remains well above the historical average rate of growth in average bottle price of 1% from 2011 to 2019.

"Volume growth across the beverage alcohol industry is expected to experience continued constraint, and the DtC declines we're seeing are a reflection of the overall market," said Alex Koral, regulatory general counsel, Sovos ShipCompliant. "Wineries must remain agile in addressing both immediate challenges and long-term shifts. Stabilization in 2025 hinges not only on external economic conditions but also on how effectively wineries adapt to consumer preferences and market headwinds."

Other notable findings and trends in the 2025 Direct-to-Consumer Wine Shipping Report include:

  • Declining price inflation: The average price per bottle shipped increased by 6%, continuing a four-year trend of smaller price increases. However, this increase remains well above the pre-pandemic average annual change.
  • Struggling low end of the DtC shipping channel: Wines priced at $40 or less saw a significant 15% decline in shipment volume as continued economic pressures, including inflation, drove many consumers away from wine clubs and deterred winery visits.
  • Deceleration of premiumization: Once a bright spot as the overall wine shipping channel slackened, the ultra-premium end of the DtC shipping channel ($80+ average bottle price) slowed in 2024, producing only a 2% increase in shipments.
  • Non-West Coast wineries avoid price increases: Of the seven winery regions tracked, only the Rest of U.S. (wineries outside the West Coast) did not increase prices, instead seeing no change in the average price per bottle shipped from 2023.
  • Pinot Noir and Sauvignon Blanc stand out: Though no category of wine experienced significant volume gains in 2024, Pinot Noir and Sauvignon Blanc performed best among the most-shipped wines. 
  • Largest wineries drive declines: Wineries producing 500,000 cases or more annually played an outsized role in the declines the DtC channel witnessed in 2024. These large wineries increased their average price per bottle shipped by 13% and experienced an 18% decline in shipments from 2023. Their shipments represent 16% of the entire DtC channel's volume.

The Direct-to-Consumer Wine Shipping Report is an annual collaboration between Sovos ShipCompliant and WineBusiness Analytics, examining shipment trends from wineries to U.S. consumers. The proprietary data included is compiled from an algorithm measuring total DtC shipments based on millions of anonymous direct shipping transactions filtered through the ShipCompliant system and paired with WineBusiness Analytics' comprehensive data on U.S. wineries, resulting in the most accurate depiction of the DtC wine shipping market.

To download the full Direct-to-Consumer Wine Shipping Report, visit dtcreport.com.

About Sovos

Sovos is transforming tax compliance from a business requirement to a force for growth. Our flagship product, the Sovos Compliance Cloud platform, enables businesses to identify, determine, and report on every tax obligation across the globe. Sovos processes 16 billion+ transactions per year, helping companies scale their compliance strategy in almost 200 countries. More than 100,000 customers – including half the Fortune 500 – trust Sovos' tax and regulatory expertise and unparalleled integration with their business applications. Learn more at sovos.com.

Sovos ShipCompliant has been the leader in automated alcohol beverage compliance tools for 20 years, providing a full suite of cloud-based solutions to wineries, breweries, distilleries, importers, distributors and retailers to ensure they meet all federal and state regulations for direct-to-consumer and three-tier distribution. ShipCompliant's solutions reduce risk, lessen the burden of compliance, accelerate bringing products to market and enable revenue growth. With 60+ partner integrations, Sovos ShipCompliant leads a robust ecosystem of technology partnerships, enabling powerful complementary solutions. For more information, visit https://sovos.com/shipcompliant and follow us on LinkedIn and Twitter.

About WineBusiness Analytics

The WineBusiness Analytics team maintains the wine industry's most accurate databases and provides data-driven analysis, data, insights and reports to help clients grow and manage their businesses. For more information visit www.winebusinessanalytics.com.

Media Contact

Abby Cohen, Rosen Group PR, Sovos ShipCompliant, 1 9732240403, [email protected], https://sovos.com/shipcompliant/

SOURCE Sovos ShipCompliant

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