A Vineyard at 2Hawk Winery
The Oregon Wine Board released its annual Oregon Vineyard and Winery Report today, showing continued momentum throughout the state’s wine industry. In 2018 the Oregon wine industry had record levels of grape acreage, wine production and a 12% increase in Oregon wine sales across the United States.
While the North Willamette Valley leads in quantity of vineyards and wineries—651 and 503, respectively—there are now 793 wineries across the state, with 24 added last year. Wineries in the South Willamette Valley swelled by 16, the biggest regional growth in 2018- totaling 89 in the region. In addition, Oregon now has more than 500 tasting rooms.
Total planted acreage of wine grapes increased by almost 6%, nearly 2,000 acres, increasing from 33,996 to 35,972. The record levels of new vineyard plantings underscore the widespread optimism within the Oregon wine industry and the continued record levels of out of state and foreign investment in the sector.
The highest growth rate in planted acreage last year was in the Umpqua and Rogue Valley AVAs. Year over year grape acreage increased by 10% as southern Oregon continued its development into a world class wine producing region.
Data for the annual Vineyard and Winery Report was gathered by the Institute for Policy Research and Engagement (IPRE) at the University of Oregon. The reported sales growth trend echoes that of recent Nielsen data, which shows sales of Oregon wine at U.S. retail rose 12% in 2018, compared to the total table wine category’s performance of 0.6% increase from the previous year.
Oregon Wine Industry Profile
The estimated value of Oregon’s wine grape crop topped the $200 million mark in 2018, at $208 million, up from $192 million the year prior,. The increase was 8.8%. IPRE researchers also found that Oregon wine sales expanded from $550 million in 2017 to $607 million last year. They were buoyed by a 19% increase in direct-to-consumer shipments, according to the Sovos/Wines Vines Analytics 2019 Direct to Consumer Wine Shipping Report.
Tom Danowski, Oregon Wine Board president, noted that industry momentum is due to the increasing recognition of Oregon’s reputation for quality and consumers’ willingness to seek out and pay for exceptional wines. Danowski went on to add:
Visit any winery or vineyard now in the midst of harvest, and it’s easy to see the skills, experience and extra effort from winemakers, vineyard managers, growers, tasting room staff and everyone involved in the process of crafting Oregon wines
Pinot noir continues to reign supreme among varieties as Oregon’s signature grape. With more than 20,000 acres of Pinot vineyards, the acreage devoted to Pinot noir increased by 5% in 2018. The leading varietal accounts for 56% of all planted acreage and 58% of 2018 wine grape production. Oregon’s second-most planted variety, Pinot gris, grew by 4% last year. It now has 5,078 planted acres.
Merlot grew by 26% in planted acreage while Cabernet Sauvignon grew by 25%. Syrah also made a significant leap at 21%, and Cabernet Franc and Chardonnay continued their steady growth at 16% and 13% growth in planted acres, respectively. Oregon’s Chardonnay production continues to soar, and is rapidly gaining a reputation as the next big thing to come out of the Oregon wine industry.
Additionally, new varieties that gained traction include Albariño and Gamay. Viognier, another up and coming varietal that thrives in southern Oregon, added almost 100 more planted acres, an increase of 38%. Oregon now grows over 50 different varieties of wine grapes.
Exports play a significant role in underscoring Oregon wines’ growing recognition on the international stage. Canada is the leading export market, accounting for 45% of export sales. In 2018, Canadians consumed 47,338 cases of Oregon wine. Notable growth areas include Scandinavian markets, with a 59% increase in wines exported to Denmark, and Asia. 15,258 cases of Oregon wine were exported in 2018 to Japan, China, Hong Kong, South Korea and other Asian countries.
The Oregon wine industry’s record-breaking performance underscores Oregon’s emergence as a world class wine producing region, not just in the North Willamette Valley, but throughout the state. More importantly, the best is yet to come.
