Outlook
Winescape: Summer 2024
Summer 2024 Issue of “Winescape” Is Now Available
Published four times a year, “Winescape” offers comprehensive analysis of the wine and grape markets as well as trending topics. Download current and previous issues of “Winescape” at winescape.com.
In the Summer 2024 issue of “Winescape,” a new wine industry report series from Terrain and American AgCredit, author Chris Bitter:
- Analyzes early-2024 data for key economic indicators and the wine and grape markets
- Reveals attributes and factors that will serve as advantages for vineyards and wineries in a slower-growth environment
- Provides insights into North Coast vineyard values, with nuanced predictions for the region's market segments
In the Market Happenings section, Chris looks at pertinent economic data for early 2024 and provides his near-term outlook for the wine and grape markets.
“Despite the lackluster outlook for the economy, I still expect some stabilization in wine sales volume as the post-pandemic hangover lifts, particularly in the direct-to-consumer channel and higher price tiers of the retail market,” he writes.
“Even if retail sales do not return to outright growth,” he continues, “wine shipments should rebound from their depressed level in 2023 once inventories fall back in line. This may take time, though, as progress on the destocking front has been slow.”
“Absent a strong rebound in wine sales,” Chris states, “the trajectory of grape prices will depend heavily on the pace of vineyard removals.”
Although we’re entering a slower-growth environment, Chris notes that opportunities persist and the prospects for any one vineyard or winery hinge on its unique qualities and position within the market.
In the Trending Topic section, he offers insights into the direction of North Coast vineyard values while evaluating the region’s eight market segments.
“I see compelling reasons that values are poised for a downward adjustment, though the magnitude and duration of the decline are less certain and will vary widely across the market segments of the region,” Chris writes. “Additionally, values for top-tier vineyards in prime areas may not decline at all.”
He adds, “For wineries seeking to acquire vineyards, the current market environment should present opportunities to purchase at lower prices.”
Read the full Summer 2024 issue at: Winescape.com.
Terrain content is an exclusive offering of American AgCredit, Farm Credit Services of America and Frontier Farm Credit.