Although the U.S. economy performed surprisingly well in 2023, the wine business news columns were filled with gloom and doom as wine demand lagged behind the growth needed to sustain the industry. The problems affected the wine sector at all levels, but were most obvious in the vineyards. I’ve heard reports from all aroound the world of vineyards simply abandoned for lack of a market for the grapes or grubbed up and repurposed to a more profitable use.
2023 was a bad year for wine, but that’s not the whole story. Stagnant and falling demand has been here for more than ten years. And wine isn’t alone. I track the beer and luxury goods industries because I think they can tell us something about trends affecting wine. Beer is down, too. And all but the very top of the luxury goods market is suddenly stalled after a prosperous pandemic period.
There is one corner of the wine world where optimism can be found, however. Not the giddy optimism that comes when you don’t really appreciate how challenging conditions are, but the realistic optimism that comes when you have studied the problems and devised a plan to turn things around. Where is this magical place? Welcome to Ontario, Canada, and the dynamic Niagara wine region.
Uncork Ontario
The Canadian wine industry is concentrated in Ontario and British Columbia and has not been immune to the economic problems (declining demand) and natural crises (widespread wildfire damage in British Columbia)
This Article was originally published on The Wine Economist
