Submitted by: Submitted by steelersfan55
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Category: Business and Industry
Date Submitted: 01/02/2014 09:16 PM
Trends in Wine Consumption
ECO 365
Trends in Wine Consumption
The article in review is “The U.S. Wine Market: Facts & Figures” and will first provide a brief summary of the article along with offering any particular trends in the consumption pattern within the wine industry. Second, is to consider the “utility derived” from the product or service mentioned within the article. Third, is to describe any changes within the demand of the product or service along with providing the products market prices. Fourth, is to describe any changes to the supply of the product or service, including the market pricing. Finally, propose an opinion on whether or not the demand of the product or service price is inelastic or elastic.
Wine is an upcoming commodity throughout the United States. With interests showing in import and especially domestic wine varieties; local wineries and retailers of wine within the United States are seeing an increase in volume sales from the increased interest in wine. This increases the trend of sales along with the demographic patterns in the purchase of this product (Brower, 2012). Known to be a social drinker once in a while my preferred taste of spirit was for only beer or others before wine but my appetite has swayed even toward a glass of Merlo (the dryer the better).
The drastic change in the demand of wine has been linked to a generational change in the United States that has become more involved in drinking wine over most other spirits. The wine growth is well ahead of beer or any other spirit when up against one another. In 2010 the consumption of wine increased to 276 million from 205 million cases in 2000. An estimated 46 million adult core wine drinkers are thought to be a part of this impressive increase. The core drinkers are put into categories that include ones who consume wine daily, weekly, and those who consume wine on two or three occasions a month. The marginal drinker has shown to represent 31 million adults making...