(NVR) - Silicon Valley Bank predicts that 2015 will be a great year for premium wineries like those that dominate Napa Valley.

The bank’s annual State of the Wine Industry Report forecasts that an improving economy will propel fine wine to grow 14-18 percent in sales and help raise wine prices, both good news for local wine businesses.

“We are seeing real strength in the U.S. economy going into 2015, which will increase demand for wine,” said Rob McMillan, founder of Silicon Valley Bank’s Wine Division and author of the report.

McMillan added, “Declining oil prices are transferring wealth to oil-consuming countries, the employment picture is improving, the U.S. dollar is strengthening and interest rates will move at a measured pace. As long as the industrialized world economies can hold their own, the middle-income consumer will see improved prospects.”

McMillan continued, “We are especially positive on the year ahead. We expect the fine wine business will experience accelerating growth, achieving 14 to 18 percent sales growth in 2015. At the same time, the cellars are full with several consecutive years of very good vintages.”

Other positive factors helping fine wines include overturned “blue” laws and relaxed restrictions on direct shipments like the recent opening of Massachusetts to direct sales.

McMillan added that starting in mid-2014, wines priced above $20 a bottle broke out strongly higher. “ ‘Trading up’ is a clear trend again,” he said. Red wines showed the strongest growth, and he expects that to continue throughout 2015.

However, he said that growth in sales of wines priced above $20 was driven by higher volume without higher prices for the consumer. McMillan said that prices will start rising due to the improving economy and increasing demand.

Silicon Valley Bank is a leader in banking for boutique wineries like most of those in Napa Valley, so its comments primarily reflect their experience. The bank surveyed nearly 600 West Coast wineries and combined it with in-house expertise and ongoing research to create the report. It maintains an extensive compilation of performance of its clients, who admittedly are typically blue-chip wineries.

Among McMillan’s key findings and predictions:

Supply: He expects to see that 2014 was the third consecutive harvest of heavy yield and great quality across most appellations.

Sales growth: After finishing the year at the top end of its predicted sales growth of 6-10 percent in 2014, he is predicting a breakout year of growth in the fine wine category in the 14-18 percent range in 2015.

Prices: While the large supply of wines in the cellars should normally indicate continued depressed pricing, he said that 2015 will be a year of both volume and price increases in the fine wine segment, driven by an improving economy and higher demand.