The data research company International Wine and Spirits Record (IWSR) has investigated the global decline in wine consumption, identifying four causes. The primary reason is changing consumption patterns.
Healthy lifestyle
According to IWSR, consumers are increasingly interested in a healthy lifestyle and are more inclined to socialize without alcohol. In 2023, half of the wine drinkers in selected markets reported actively moderating their alcohol consumption. One-third of them do so by abstaining from alcohol on certain occasions. About 20% opt for alternatives with no or low alcohol content. This trend spans generations, but on average across selected markets, Gen Z is driving it the most.
Desire to experiment
The second cause identified by IWSR is the shift between product categories. Bevtrac consumer data showed that in many markets, Millennials and increasingly Gen Z consumers have less affinity for specific beverage categories and are instead open to experimentation. "This trend should not come as a surprise," commented Richard Halstead, COO Consumer Research, IWSR. With the enormous changes in the beverage market over the past decade and a half, the increasing availability of specialty drinks, the trend towards cocktails, and widespread smartphone shopping, wine has faced much competition from increasingly adventurous alcohol consumers.
Less alcohol
The third cause cited by IWSR is that younger adult wine drinkers generally participate less frequently in wine consumption. Long-term data showed that the frequency of consumption is declining in many markets. For example, in Australia, monthly wine consumption among 18- to 24-year-olds halved between 2010 and 2023.
Higher-quality wines
Another reason is the desire for a better drinking experience. Many consumers choose to seek out more sophisticated brands and categories. While people are drinking less frequently, when they do, they opt for higher quality. In the wine sector, this trend is evident in the rise of premium rosé, organic wines, and sparkling wines.
There is a clear division between price segments. Lower-priced wines are losing volume, while wines in the super-premium segment and above are experiencing growth, albeit at a declining overall growth rate. This shift is driven by lifestyle changes, such as moving away from daily wine consumption with meals.
Continued decline in consumption
The IWSR concludes that the challenges facing the wine industry are most pronounced in the lower price segments and among still wines. Although there are clear growth opportunities for brand owners, these gains will not be sufficient to offset the declines in cheaper wine products in the mass market. This means that the long-term overall decline in wine volume is expected to continue for some time. RW
