U.S. wine exports fell 17 percent in 2005 to $659 million from a record high of $795.5 million in 2004. In spite of the decline, 2005 wine exports were still greater than the yearly wine exports from 2000 through 2003. Major markets for U.S. wine exports include the United Kingdom, Canada, Japan, Italy, and the Netherlands. Major U.S. wine competitors include France, Italy, Australia, Spain, Chile, Germany, Portugal, South Africa, New Zealand, and Argentina. In 2005, wine imports to the United States reached a record high of $3.79 billion.
According to Wine Institute estimates, wine sales in the United States were up 12 percent in value and 5 percent in quantity in 2005. The estimated retail value of wine shipments from all sources to the United States in 2005 is $26 billion. Wine consumption in the United States has been rising slowly and consistently over the last 11 years.
A Supreme Court ruling in the spring of 2005 said that states cannot discriminate in favor of their in-state wineries by allowing only those local wineries to make shipments via common carriers to their in-state consumers while prohibiting out-of-state wineries from making shipments to those same consumers. Another important development for the U.S. wine industry was the completion of the first phase of the U.S.-EU agreement on
wine. The agreement provides for mutual acceptance of existing wine-making practices and addresses labeling issues.
The greatest competition to the market share for U.S. wines comes from the European Union-25 nations and some of the New World (non-European) producers, particularly Australia.
The European Union’s 2005 wine production decreased 12 percent from 2004. Production is not expected to increase significantly in the near term due to policy controls. Australian wine production has experienced strong growth in the last decade. A weaker U.S. dollar against the currencies of key trading partners, a general improvement in the global economy, and strong marketing strategies should aid sales of U.S. wines in 2006. The Foreign Agricultural Service of the USDA predicts that for all of FY 2006 (October 2005 through September 2006), the value growth of U.S. wine
exports will be unchanged from FY 2005.
