Beverages: Five key trends defining opportunities in the global wine market in 2025
- InsightTrendsWorld
- Mar 20
- 11 min read
Why it is the topic trending (bullets, detailed description):
Structural Threats to the Wine Industry:Â The global wine market is facing significant challenges, including demographic shifts, a moderation trend in alcohol consumption, and economic pressures, making the topic of its future trajectory highly relevant.
Identifying Opportunities Amidst Challenges:Â Despite the overall negative outlook for volume, the article focuses on identifying specific opportunities within the wine market, making it valuable for industry stakeholders.
New Insights from a Leading Authority:Â The analysis is based on a newly published report by IWSR, a recognized global leader in beverage alcohol data and insights, lending credibility and weight to the discussed trends.
Focus on the Next Generation of Consumers:Â The article emphasizes the importance of understanding and meeting the needs of younger, more engaged consumers (Millennials), making it crucial for the long-term sustainability of the wine industry.
Impact of External Factors:Â The article considers the influence of government priorities related to climate change and excessive alcohol consumption, highlighting the broader context shaping the wine market.
Overview:
The article discusses the challenges facing the global wine market, including declining consumption volumes and an aging consumer base. However, it also identifies five key trends outlined by IWSR that present opportunities for innovation and growth. These trends revolve around demographic shifts, the moderation trend, financial pressures, innovation in alternative wine categories (no/low alcohol, organic, sustainable), and the valuable Millennial consumer segment. Despite an overall pessimistic outlook for volume, the article suggests that by adapting to these trends, the wine industry can find pathways for future success.
Detailed Findings:
Demographic Challenges:Â The number of wine drinkers in key markets declined between 2021 and 2024, despite adult population growth. Mature markets are increasingly reliant on older generations, but younger recruits are more involved and higher spending. Boomers constitute the majority of drinkers but have lower involvement. Involvement levels are rising as more enthusiastic younger drinkers replace less involved consumers.
The Moderation Trend:Â Sales volumes are declining in the top 10 wine markets, driven by health concerns and financial worries. Many moderating consumers intend to maintain or further reduce their intake, indicating a long-term shift away from previous consumption levels.
Financial Pressures:Â The decline in wine consumption is more pronounced at the lower end of the price spectrum. Growth is predicted only in premium-and-above price tiers between 2025 and 2027. Consumers are increasingly seeking more value and relying on recommendations to ensure their purchases are worthwhile.
Innovation Opportunities:Â The no/low alcohol wine sector is experiencing strong growth, with no-alcohol sparkling leading by volume and low-alcohol still wine being the fastest-growing segment. Alternative wines (organic, sustainable, natural) are gaining appeal due to their health and environmental credentials. Sustainability is becoming an important factor for younger drinkers, who are wary of greenwashing.
Valuable Millennials:Â Millennials, now in their late 20s to early 40s, are a highly valuable segment as they enter their prime earning years. They are more involved in wine, drink more per occasion, and buy more expensive wine than average. They also experiment with a wider range of grape varieties and engage with more wine-buying channels, presenting opportunities for personalized experiences and storytelling.
Key Takeaway:
While the global wine market faces significant headwinds leading to volume declines, opportunities for value growth and consumer engagement exist by focusing on the preferences of Millennial consumers, innovating in no/low and alternative wine categories, and adapting to the moderation trend and financial pressures through effective communication of value and sustainability.
Main Trend:Â The Evolving Global Wine Landscape: Adapting to Demographic Shifts and Changing Consumer Preferences
Description of the trend:Â This trend encapsulates the significant transformation occurring in the global wine market, characterized by a decline in overall volume but a simultaneous emergence of new opportunities driven by evolving consumer demographics, a growing moderation movement, economic considerations, and a demand for innovation and value.
What is consumer motivation:
Older Generations (Boomers):Â Loyalty to the category but lower involvement and spending compared to younger drinkers.
Younger Generations (Millennials):Â Higher involvement, experimental tastes, willingness to spend more, and attraction to brands, storytelling, and experiences reflecting their lifestyles.
Moderating Consumers:Â Driven by health concerns and financial worries, seeking to reduce their overall alcohol intake and expenditure on wine.
Consumers of Alternative Wines:Â Motivated by health (minimal additives) and environmental concerns (organic, sustainable), willing to pay more for these attributes.
What is driving trend:
Demographic Shifts:Â An aging consumer base and a slower rate of recruitment of younger drinkers.
Increased Health Awareness:Â Growing mindfulness regarding alcohol consumption and its health implications.
Economic Pressures:Â Financial worries and the rising cost of living impacting consumer spending on discretionary items like wine.
Government Policies:Â Prioritization of action on climate change and excessive alcohol consumption influencing production and consumer choices.
Innovation in the Beverage Industry:Â The rise of compelling no/low alcohol alternatives and increasing consumer interest in sustainable and natural products.
What is motivation beyond the trend:
Beyond the direct motivations related to wine consumption, broader societal trends are at play:
Emphasis on Health and Wellness:Â A global movement towards healthier lifestyles and mindful consumption across various categories.
Growing Environmental Consciousness:Â Increased awareness and concern about climate change and sustainability influencing consumer purchasing decisions.
Value-Driven Consumption:Â Consumers are becoming more discerning about how they spend their money, seeking quality and value that aligns with their priorities.
Demand for Experiences:Â Younger generations prioritize experiences and seek brands that can connect with their lifestyles and values through storytelling and engagement.
Description of consumers article is referring to:
The article refers to several distinct consumer groups:
Age:Â Primarily focuses on Boomers (over-60s), who represent the bulk of current wine volume but have lower involvement; Millennials (late 20s to early 40s), who are highly valuable due to their involvement and spending power; and younger legal drinking age (LDA) drinkers, who are being recruited at a slower rate but show high involvement.
Gender:Â Not specifically differentiated in the trends discussed.
Income: Mentions a decline in the population of wine drinkers at lower income levels who may be opting out of alcohol for economic reasons. Millennials who drink wine regularly are reported to buy more expensive wine, suggesting a higher disposable income within this segment.
Lifestyle: Millennials are described as having more experimental tastes, being happy to spend more, exploring broader retail channels, and attracted to brands, storytelling, and experiences reflecting their lifestyles. The moderation trend indicates a lifestyle shift towards mindful consumption driven by health and financial concerns.
Conclusions:
The IWSR report, as outlined in the article, concludes that while the global wine market faces structural challenges leading to volume declines, significant opportunities exist for brands that can adapt to evolving consumer preferences. These opportunities lie in catering to the valuable Millennial segment, innovating in the no/low alcohol and alternative wine categories, and effectively communicating value and sustainability to a more discerning consumer base.
Implications for brands:
Shift Focus from Volume to Value:Â Prioritize strategies that drive revenue and profit through premiumization and engagement with higher-spending consumers like Millennials.
Invest in No/Low Alcohol and Alternative Wine Categories:Â Recognize the growth potential in these segments and innovate to improve product quality and appeal.
Enhance Brand Storytelling and Experiences:Â Connect with Millennial consumers by creating compelling narratives and offering engaging experiences through various channels.
Emphasize Sustainability and Authenticity:Â Integrate sustainability into brand identity and communicate these values transparently to resonate with younger, environmentally conscious consumers.
Focus on Value Proposition and Recommendations:Â In a price-sensitive market, ensure that product quality and the cues on the bottle, along with positive recommendations, justify the consumer's investment.
Develop Targeted Marketing Strategies:Â Tailor marketing efforts to different consumer segments, recognizing their distinct motivations and preferences.
Implication for society:
Potential Shift in Alcohol Consumption Norms:Â The moderation trend suggests a broader societal shift towards more mindful and reduced alcohol consumption, driven by health awareness.
Growing Demand for Sustainable Products:Â The increasing interest in organic and sustainable wines reflects a wider societal concern for environmental issues.
Economic Impact on the Wine Industry:Â The decline in volume, particularly at the value level, could have economic implications for producers and regions dependent on wine production.
Public Health Benefits of Moderation:Â The trend towards lower alcohol consumption could have positive public health outcomes.
Implications for consumers:
Greater Availability of No/Low Alcohol Options:Â Consumers seeking to reduce their alcohol intake will find a wider and potentially higher quality range of alternatives.
Increased Focus on Value and Quality:Â Consumers will likely be more discerning about their wine purchases, seeking better quality for the price they pay.
More Diverse Product Offerings:Â The growth in alternative wine categories will provide a broader selection of organic, sustainable, and natural wines for consumers with specific preferences.
More Engaging Brand Experiences:Â Millennials can expect more personalized experiences and opportunities for engagement with wine brands through various channels.
Implication for Future:
The future of the global wine market will likely be characterized by:
Continued Volume Declines in Traditional Wine:Â The moderation trend and demographic challenges are expected to persist, leading to ongoing volume decreases.
Significant Growth in Value and Premium Segments:Â Brands that focus on higher-quality wines and effectively target valuable consumer segments will likely see growth in revenue.
Mainstreaming of No/Low Alcohol Wines:Â This category will continue to expand and become a more integral part of the overall beverage market.
Increased Importance of Sustainability:Â Environmental credentials will become a more significant factor in consumer choice and brand differentiation.
Dominance of Millennial Influence:Â As they gain more economic power, Millennial preferences will increasingly shape the wine market.
Consumer Trend (name, detailed description):Â Mindful Wine Consumption
Detailed Description:Â This trend reflects the growing number of wine drinkers who are becoming more conscious of their consumption habits, driven by health concerns and financial considerations. This often translates to a reduction in the volume of wine consumed and an increased interest in lower-alcohol or alcohol-free alternatives.
Consumer Sub Trend (name, detailed description):Â Premiumization with Purpose
Detailed Description:Â This sub-trend describes consumers, particularly Millennials, who are willing to spend more on wine, but they seek products that offer not only high quality but also align with their values, such as sustainability, ethical production, and authentic brand stories.
Big Social Trend (name, detailed description):Â The Rise of Conscious Consumerism
Detailed Description:Â This broader social trend encompasses consumers making purchasing decisions based on a wider range of factors beyond just price and quality, including health implications, environmental impact, and social responsibility of the brands they support.
Worldwide Social Trend (name, detailed description):Â Global Shift Towards Health and Wellness
Detailed Description:Â This trend reflects a worldwide increase in awareness and prioritization of health and well-being, impacting various industries, including the alcohol market, leading to greater interest in moderation and healthier alternatives.
Social Drive (name, detailed description):Â Seeking Value Alignment
Detailed Description:Â Consumers, especially younger generations, are increasingly motivated to support brands and products that align with their personal values, whether it's environmental sustainability, health consciousness, or social responsibility, influencing their choices in the wine market.
Learnings for brands to use in 2025 (bullets, detailed description):
Understand Millennial Preferences Deeply:Â Invest in research to gain a comprehensive understanding of Millennial consumers' wine preferences, purchasing behaviors, and lifestyle values to tailor products and marketing efforts effectively.
Embrace the No/Low Alcohol Opportunity:Â Develop high-quality and appealing no/low alcohol wine options that cater to the growing segment of mindful drinkers without compromising on taste or experience.
Integrate and Communicate Sustainability Efforts:Â Implement sustainable practices throughout the wine production process and transparently communicate these efforts to build trust and resonate with environmentally conscious consumers.
Focus on Quality and Justify Premium Pricing:Â With consumers being more discerning, ensure that the quality of wines in the premium-and-above tiers justifies their price point and clearly communicate the value to consumers.
Craft Authentic and Engaging Brand Stories:Â Develop compelling brand narratives that connect with consumers on an emotional level, highlighting the heritage, craftsmanship, or unique aspects of the wine.
Utilize Diverse Engagement Channels:Â Recognize that Millennials engage with wine through various channels, including online platforms, social media, and experiential events, and develop strategies to connect with them across these touchpoints.
Educate Consumers on Wine Value and Quality:Â Provide consumers with the information and cues they need to make informed purchase decisions, emphasizing the elements that contribute to the value and quality of the wine.
Strategy Recommendations for brands to follow in 2025 (bullets, detail description):
Develop a Diverse Product Portfolio:Â Offer a range of wines across different price points and categories, including traditional wines, no/low alcohol options, and alternative wines (organic, sustainable), to cater to various consumer needs and preferences.
Invest in Digital Marketing and Social Media:Â Create engaging and visually appealing content on platforms frequented by Millennials to build brand awareness, educate consumers, and foster a community around the brand.
Offer Personalized Experiences and Build Loyalty:Â Leverage data and technology to provide personalized recommendations and build loyalty programs that resonate with Millennial consumers' desire for unique experiences.
Strengthen Relationships with Retailers and On-Premise Channels:Â Work closely with retailers and bars to ensure that your products are well-positioned and promoted effectively to reach target consumers in their preferred purchasing environments.
Host Experiential Events and Tastings:Â Organize wine dinners, pop-up events, and tasting sessions to provide consumers with opportunities to engage with your brand and learn more about your wines in a memorable way.
Obtain and Highlight Relevant Certifications:Â Secure certifications for organic, sustainable, or natural production methods and prominently feature these on your packaging and marketing materials to build trust with consumers who value these attributes.
Continuously Monitor Consumer Trends and Adapt:Â Stay informed about evolving consumer preferences and market dynamics through ongoing research and adapt your product offerings and marketing strategies accordingly.
Final sentence (key concept) describing main trend from article:Â The global wine market is undergoing a significant transformation, characterized by volume declines but offering opportunities for value growth through adaptation to evolving demographics, the rise of mindful consumption, financial pressures, and the demand for innovative and purpose-driven wine options.
What brands & companies should do in 2025 to benefit from trend and how to do it:
In 2025, wine brands and companies should focus on understanding and catering to the evolving consumer landscape to thrive despite overall volume challenges. They should:
Prioritize Millennial engagement:Â Develop products and marketing strategies specifically tailored to the preferences and values of this key demographic, focusing on experiences, storytelling, and authenticity.
Embrace innovation in alternative categories:Â Invest in the development and marketing of high-quality no/low alcohol and organic/sustainable wine options to capitalize on growing consumer demand.
Communicate value and sustainability effectively:Â Clearly articulate the quality and value proposition of their wines, especially in the premium segment, and transparently highlight their sustainability efforts to resonate with discerning consumers.
Final Note:
Core Trend:
Name:Â The Value-Driven Evolution of Wine
Detailed Description:Â The global wine market is shifting from a volume-centric model to one focused on value creation by catering to specific consumer segments like Millennials, embracing innovation in categories like no/low and sustainable wines, and emphasizing quality and brand authenticity.
Core Strategy:
Name:Â Targeted Engagement and Sustainable Innovation
Detailed Description:Â Wine brands should strategically engage with valuable consumer segments, particularly Millennials, through personalized experiences and compelling storytelling, while simultaneously investing in sustainable production practices and innovative product development in the no/low alcohol and alternative wine sectors.
Core Industry Trend:
Name:Â The Premiumization and Diversification of Wine
Detailed Description:Â The wine industry is experiencing a trend towards premiumization, with growth concentrated in higher price tiers, coupled with a diversification of product offerings to include no/low alcohol and alternative wines to meet changing consumer preferences.
Core Consumer Motivation:
Name:Â Seeking Value and Alignment in Wine Choices
Detailed Description:Â Consumers are increasingly motivated by the desire to find value in their wine purchases, considering not only price but also quality, brand authenticity, and alignment with their personal values, such as health and environmental sustainability.
Final Conclusion:Â The global wine market in 2025 and beyond presents a complex landscape of challenges and opportunities. By understanding and adapting to the key trends identified by IWSR, particularly the evolving demographics, the moderation movement, and the demand for value and innovation, wine brands can navigate this landscape successfully and build a sustainable future.
Core Trend Detailed (name, detailed summary):
Name:Â The Value-Driven Evolution of Wine
Detailed Summary:Â The global wine market is shifting its focus from selling large quantities to increasing value by appealing to specific consumer groups like Millennials and innovating in categories like no/low and sustainable wines, while also emphasizing the quality and authenticity of their brands.
