Rising Prices: The Main Factor for Growth in 2023

DTC Beverage Alcohol Market

The DTC market grew in the first half of 2023 driven by a 9% increase in the average price per liter across total beverage alcohol. The number of items per order decreased slightly against 2022 thus leading to an 8% net increase in the average order value. 

Tax Collection

Growth in the value of the DTC market also led to an increase in the amount of taxes paid. Since the decision in South Dakota vs Wayfair in 2018, Vinoshipper has become a marketplace facilitator across 39 states. This ensures accurate and timely tax collection and remittance to state and local county governments across the United States.

Sales by Age Demographic

Sales of beverage alcohol in the first half of 2023 remained concentrated between Millennials, Generation X and Baby Boomers, as they accounted for 96% of order value for the third year running. The chart shows how evenly distributed alcohol purchasing is by the three major age cohorts and how marketing and sales strategies should be deployed to connect with each age group instead of focusing on one directly.

The average order value increased across all age groups, none significantly greater than the other as price increases hit all shopping carts. The Silent Generation cohort remains the highest average order spender, but they make up just 2% of total sales value. In 2023, the average order value continued the trend of increasing with age.

Sales by Varietal

Pinot Noir was the most purchased DTC varietal by value in the first half of 2023. Apple Cider fell two spots to 4th, as a result of stable pricing, as opposed to an increase in prices for wines and meads. The largest jump was by Cabernet Franc.