By Jennifer Matthews
- The wine industry faces a surplus as younger generations turn to healthier drink alternatives
- Wineries are expanding into the non-alcoholic market that is projected to soar to $2.61B by 2031
Vineyards are overflowing, yet the glasses remain half-empty. Still reeling from the pandemic’s impact, the wine industry now grapples with an excess supply, putting massive pressure on both grape farmers and small business owners. Between 2017 and 2023, wine consumption has plummeted by 10.5%, specifically among younger generations who are increasingly favoring healthier and more affordable beverages over traditional wines.
Why This Matters: The prime wine-consuming generation has been Baby Boomers, and millennials along with Gen Z aren’t interested in continuing the uncorking. This decline isn’t just a numbers game, but it shows a large shift in cultural and consumer preferences within younger communities. Over the course of history, wine has been a symbol of sophistication and celebration, but as younger drinkers prioritize wellness and budget-conscious choices, wineries find themselves at a crossroads.
To compete with the changing market, wineries are expanding into the non-alcoholic market, a market that is projected to soar from $1.21 billion to $2.61 billion by 2031. This pivot could not only build a broader audience, but it would also sustain the livelihoods of grape farmers and winery employees who have been hit hard by the surplus. The wine industry as a whole seems to be embracing non-alcoholic alternatives as a way to help to stay relevant in this new market. However, this transition would require a strategic investment and better understanding of the new consumer landscape to resonate with the communities they want to serve.
What’s Next: The global wine consumption has dropped by 7.5% over the past two decades, and the outlook suggests this trend is set to continue. Especially when you consider that Dry January is turning into Dry February, and Sober October is picking up steam, as Axios reported. With fewer regular wine drinkers and a growing preference for non-alcoholic and healthier options, the industry’s traditional model is under severe strain.
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