Grapes can be seen in vineyards on the Rhine River in western Germany.
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Global wine consumption has been steadily declining in recent years – it has forced the wine industry to adapt. As health awareness and rising inflation increases, demand for organic wines, non-alcoholic beverages and high-end delicious wines is increasing, and this is increasing demand.
Global wine production is expected to fall by about 2% last year, the lowest level since 1961, according to data from the International Wine and Wine Organization. World wine production prospects in 2024. The industry group said climate issues and adverse weather events played a big role in this decline, especially in France, where output is so obvious that it was described as “substantially affecting global wine supply.”
With economic challenges and changes in drinking behavior, production declines and consumption declines. this Latest statistics It shows that world wine consumption fell by 2.6% in 2023 when it was already “already low”.
“People are actively trying to drink less,” said Richard Halstead, chief operating officer of IWSR Consumer Research, an alcohol industry research firm. He explained that while spirits like cognac and whiskey are still reserved for special occasions, the once-everyday drinks and beer-like drinks (usually every day) feel tight.
As wine changes are no longer daily drinks, but more occasional treatment, which has triggered many emphasis in the wine industry.
“The industry is thinking about how people can spend more money by making the product more fun. You’ll see natural, organic, orange, low intervention, the characteristics of wine, which is inherently more handmade,” Hallstead said. “People want to keep in check, they are more interested in the product itself than just a drinking mechanism.”
This more professional interest prompted the growth of the niche that was the past that was brewing. according to study According to market research firm Horizon, the organic wine market will have a CAGR of 10.3% between 2024 and 2030, with Europe’s largest revenue.
Orange wine – Made for longer when leaving the skin on white wine grapes – also keeps enjoying Significant growth.
A hotel exhibited a wine glass.
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Tatiana Fokina, CEO of Enjoying Wine, is a spirits store in Mayfair known for her rare products, said she has witnessed significant changes in wine sales since the store opened in 2012. In particular, she said, people have begun to have a deeper interest in discovering the production process and origin of the wine they consume.
“I think people have more education about what they drink. They have a better sense of taste, they have a better understanding of complex wines, probably higher-level wines, rather than buying more simple low-end wines,” she said.
This change is because experts hope to revive the quality wine industry after one experience 11% price drop In 2024. expertthe demographics of quality buyers are changing, and the baby boomers (born between 1946 and 1964) “aging” the market, while the younger generation is beginning to participate, including through digital markets to help “democratize” access to the industry.
Fokina agrees that people are now willing to spend more on a good bottle of wine than buying three lower quality wines. She said people are becoming more interested in half a bottle of wine because people don’t necessarily want to open a bottle on Tuesday night.
Low alcohol growth
The younger generation is also pioneering the growth in another area of the industry: low-alcohol and alcohol-free wines.
Generation Z (usually defined as people born between 1996 and 2012) now accounts for 45% of drinkers, and in sharp contrast to parents, they see health as the driving force behind their behavior. according to Research From Mintel’s perspective, people aged 20-24 in the UK are half as likely to buy alcoholic beverages than older generations, and that’s one reason to be thirsty for lifestyle and health options.
In the wine Essence (the main wine activity in Portugal), a worker was seen pouring the wine into a glass.
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ISWR notes that wine is taking the lead as the non-alcoholic beverage market experiences a “time of growth change”. The organization expects that between 2023 and 2027, the market will grow at a compound interest rate of about 12%, while beer and cider will grow at a 2%.
Michel Doukeris, CEO of the world’s largest winemaker AB INB.On the most recent Interview with CNBC. He stressed the importance of social occasions to consumers and said that alcohol-free choices allow people to continue socializing.
“Usually, they can’t drink alcohol because they need to drive home. Now they can drink non-alcoholic beer and interact with friends. Still drive home.”
