From Decline to Opportunity: Lessons from the 2024 DtC Market

Alexandra Daniels
March 7, 2025

This blog was last updated on March 7, 2025

The 2025 Direct-to-Consumer Wine Shipping Report offers more than just data—it provides valuable insights into the trends shaping the industry and the factors driving change. To delve deeper into these findings, industry experts Andrew Adams from WineBusiness Analytics and Alex Koral from Sovos ShipCompliant joined forces in a recent webinar, unpacking the key takeaways. Their discussion explored not only the numbers but also the underlying dynamics of today’s direct-to-consumer (DtC) landscape, the challenges wineries face and the opportunities that lie ahead.

The state of the DtC wine market: A shift to new norms

The 2025 Direct-to-Consumer Wine Shipping Report confirms what many in the industry have been feeling—2024 was a challenging year for DtC wine sales. In 2024, the total volume of DtC shipments dropped by 10% to 6.4 million cases as the total value declined by 5% to $3.94 billion. While these numbers might seem discouraging at first glance, historical trends reveal there’s more to the story.

For years, the channel operated somewhat independently from traditional wine sales, growing steadily even as retail sales fluctuated. However, as Alex Koral explained during the webinar, the pandemic era fundamentally altered that dynamic. “If we were to just consider 2019 going forward, this would still be a challenging year,” Koral noted. “But what we’re seeing is that DtC is now much more closely tied to the overall wine market. The factors affecting traditional retail and wholesale are now influencing DtC just as much.”

Andrew Adams from WineBusiness Analytics reinforced that, despite the volume declines, the channel has still outperformed some retail sectors. While traditional wine sales are facing similar challenges, DtC remains a critical sales avenue, particularly for small and mid-sized wineries that depend on direct relationships with consumers.

Market trends: What and where consumers are buying

Last year ended on a positive note as total shipment value in December increased by 13% while shipment volume remained stable. This late year rebound suggests that consumer demand for direct shipments remains solid, even as buying behaviors continue to shift. Consumers may be purchasing wine differently than they did during the pandemic boom, but they are still engaging with DtC channels—just with a more selective and value-driven approach.

One of the clearest trends from the report is the ongoing resilience of the premium segment in the DtC market. Wines priced at $80 or more per bottle saw a 2% increase in shipment volume, even as lower-priced wines faced greater challenges. This indicates that while overall premiumization may be slowing, there remains strong consumer interest in high-quality wines and exclusive experiences. It also suggests that wineries focusing on premium positioning, membership perks and direct engagement with high-value customers are in the best position to succeed.

Among the varietals, Sauvignon Blanc defied expectations, becoming the only major wine type to see a 1% increase in shipment volume alongside a 6% rise in total shipment value. This performance indicates growing consumer interest in diversification, even as traditional powerhouse varietals like Cabernet Sauvignon and Pinot Noir maintained higher price points alongside slight volume declines.

Geographically, several states outside of the West Coast remained strong destinations for direct shipments in 2024. Texas, Colorado, New York and Pennsylvania all ranked among the top 10 destination states, reinforcing that consumer demand extends beyond the traditional West Coast strongholds of California, Oregon and Washington. While overall shipment trends fluctuated, these states continued to be significant markets for wineries looking to sustain and grow their DtC presence.

How wineries can win in 2025 and beyond

As the DtC wine market enters a new phase, the future success of the channel will depend on how well wineries adapt to changing consumer expectations and market conditions. The key is in optimizing what wineries can control—deepening customer relationships, enhancing the DtC experience and refining pricing and fulfillment strategies.

  1. Engagement beyond the initial purchase: Adams emphasized that maintaining engagement beyond the initial interaction is essential. With economic uncertainty influencing buying habits, wineries that make their customers feel valued and provide consistent, high-touch engagement will stand out from competitors. Direct engagement strategies—including personalized email marketing, exclusive offers, post-purchase follow-ups and customized product recommendations—will play a critical role in fostering brand loyalty and repeat purchases. Additionally, Adams pointed out an interesting dynamic that could present an opportunity for wineries in 2025—many consumers overbought wine in 2020 and 2021 and have spent the last few years drinking through their stockpile. As their reserves dwindle, these wine drinkers may be ready to re-enter the market, making now a crucial time for wineries to re-engage them with compelling offers and personalized outreach.
  2. Leverage wine clubs and referral programs: One of the most effective ways for wineries to strengthen long-term customer relationships remains through wine clubs and referral programs. These programs provide predictable revenue streams, increased customer lifetime value and a direct connection to engaged wine buyers. While clubs create a sense of exclusivity and belonging, offering members perks, referral programs further extend reach by leveraging the power of word-of-mouth marketing. Offering discounts, included shipping or bonus bottles as perks can help wineries expand their customer base organically while strengthening existing relationships.
  3. Reassess pricing strategies: With rising shipping costs and economic pressures, wineries must also rethink their pricing and fulfillment strategies to remain competitive while maintaining profitability. One key consideration discussed in the webinar was the importance of transparency around shipping costs. Being upfront about these costs—whether by clearly communicating them early in the purchasing process or incorporating them into the listed price of the wine—can help minimize sticker shock at checkout.. Consumers are more likely to complete a purchase if they perceive greater transparency and value in pricing rather than being hit with high shipping fees late in the process.

The path forward

The demand for direct-shipped wine is still strong, but winning in this space requires an evolving and strategic approach. Sovos ShipCompliant will continue monitoring industry movements throughout the year, providing insights to help wineries adapt their strategies and maximize their potential.

For more trends shaping the future of DtC wine sales, download the full report today.

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Author

Alexandra Daniels

Alexandra Daniels is a Senior Content Marketing Manager at Sovos, leveraging 7+ years of experience to develop and execute high-impact content strategies. Specializing in digital marketing, SEO, and demand generation, she is adept at collaborating with subject matter experts to translate complex concepts into compelling insights that clearly resonate with a diverse global audience.
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