Like Everything Else, the Cost of Wine is Going Up

he average consumer knows that when they walk into the grocery store, they will pay more for items like eggs and chicken. Now they can add wine to the list.

The wine industry saw a 30% increase in costs this year, and multiple factors are to blame. The COVID-19 pandemic didn’t help, shuttering restaurants and wineries, and driving up costs per bottle.

Increased gas prices and inflation have made it challenging to distribute wine at the same costs, and much of that has to do with the bottle.

Stephen Rannekleiv, a global strategist for the beverages division of Rabobank, wrote in the financial giant’s second-quarter wine outlook. “However, we would not be surprised to see some glass suppliers implement additional price increases as the year progresses. Nor would we be surprised if the extent to which their input costs are increasing turns out to be structural rather than transitory.”

Read more on Dimensional Insights.