6 Highlights from the 2020 Direct-to-Consumer Wine Shipping Report

Delaney McDonald | January 24, 2020

This January, Sovos ShipCompliant released the 2020 Direct-to-Consumer (DtC) Wine Shipping Report with our partner, Wines Vines Analytics. The year 2020 marks the 10th annual DtC report, which features exclusive data and insights on the state of the industry not tracked or reported on anywhere else. With wine shipments to consumers reaching a record $3.2 billion in 2019, all eyes are on the continued yet slowing growth of the maturing DtC market. Let’s dive into the numbers and what they mean for 2020 and beyond.

How we get the report numbers

We’re frequently asked about how we gather and analyze the data for the report, so here is a peek inside the process. The Direct-to-Consumer Wine Shipping Report takes shipment data from over 1,000 U.S. wineries’ shipments to consumers each month, totaling more than 20 million shipments over the course of the year. 

As we gather information, each shipment is edited for submission for governmental tax and reporting requirements, and all elements are validated by standardized tables. The verified data is submitted to a proprietary model built on a database of more than 10,000 wineries that is updated monthly by Wines Vines Analytics. This algorithm has been trusted by the industry for a decade to provide the most accurate DtC data available. 

Highlights from the 2020 DtC report

The DtC report is packed full of data, insights and forecasts regarding the wine industry. The report findings are broken down by month, winery region, winery size, varietal, destination of shipments and price to produce the most thorough analysis. We will continue to dive deeper into a number of themes and trends presented in the report in the coming weeks, but here are some notable takeaways from an industry-wide viewpoint.

  1. DtC channel growth matured in 2019. The volume increased 4.7 percent and value increased 7.4 percent, indicating a maturing market with a lack of new states opening up to DtC shipping. 
  2. The varietal Syrah saw strong increases in 2019 with a 16 percent increase in value, a 14 percent increase in volume and a 2.5 percent bump in average price.
  3. America’s largest wineries are embracing DtC shipping. Wineries producing more than 500,000 cases of wine annually far outperformed all other categories of wineries in 2019. This group of the largest wineries has increased its value of DtC shipments by over 500 percent and now represent 15 percent of the volume of all winery DtC shipments.
  4. In 2019 wines priced at $100+ continue to outperform the overall DtC channel, supporting the continued trend of premiumization in the wine industry. 
  5. Oregon and Washington wineries continued to outpace other regions in shipment volume, value and price per bottle.
  6. 2019 saw the largest increase in average price per bottle shipped since 2011, with a 2.5 percent increase. 

Download your free copy of the 2020 Direct-to-Consumer Wine Shipping Report for additional insights and thorough analysis of industry trends.

Opportunity to meet at upcoming industry events

Looking to discuss the report findings with a Sovos ShipCompliant team member? We’ll be at a number of industry events in the coming months, and we’d love to chat about how we can help streamline your compliance operations so you can focus on taking advantage of these DtC trends to grow your business. We’ll be at the Unified Wine & Grape Symposium, Feb. 4-6 (see us at booth C1329), Oregon Wine Symposium, Feb.11-12 (see us at booth 214), Sovos ShipCompliant Beverage Alcohol Summit Mar. 24, Craft Brewers Conference & BrewExpo America, Apr. 19-22, and the Sovos ShipCompliant Wine Summit, May 28.