Beverages: Over 60-year low: Wine consumption falls heavily into the red
- InsightTrendsWorld
- Apr 16
- 8 min read
Why it is the topic trending:
Significant Decline in Wine Consumption: The reported over 60-year low in worldwide wine consumption in 2024 is a major concern for the wine industry.
Impact of Economic and Health Concerns: The article highlights the "perfect storm" of factors contributing to this decline, including health concerns and economic pressures.
Threat of US Tariffs: The potential reimposition of US tariffs is identified as a new risk for the industry.
Generational Shift in Drinking Habits: The article notes a "generational" fall in wine drinking, with younger people consuming less than their parents.
Regional Variations: The report details how consumption and production are changing in key wine regions globally.
Overview: The article discusses the significant drop in worldwide wine consumption in 2024, reaching its lowest level since 1961. The decline of 3.3% from the previous year is attributed to a combination of health concerns, economic factors impacting consumer spending, and potential future challenges such as US tariffs. While Europe accounts for nearly half of global sales and also saw a decrease, the US, the world's top wine market, experienced a notable fall. Interestingly, Spain and Portugal were outliers with increased consumption. The article also points to a generational shift in drinking habits, with younger people consuming less wine.
Detailed findings:
Worldwide wine consumption fell by 3.3% in 2024, reaching a 60-year low.
Global wine sales in 2024 were 214.2 million hectoliters (hl), the lowest since 1961 (213.6 million hl).
Global wine production also fell by 4.8% in 2024 to a 60-year low of 225.8 million hl.
Factors contributing to the decline include health concerns and economic pressures on consumers.
The US, the world's top wine market, saw consumption fall by 5.8% to 33.3 million hl.
Potential reimposition of US tariffs is considered a significant risk for the wine industry.
Wine consumption in Europe fell by 2.8%, with France experiencing a 3.6% decrease.
Spain and Portugal were among the rare markets with increased wine consumption.
Italy was the top wine producer (44 million hl), while France's output fell 23% to its lowest since 1957.
Italy also increased its wine exports, driven by the popularity of sparkling wines like Prosecco.
US wine output fell 17.2% due to extreme heat.
There is a "generational" fall in wine drinking, with younger people consuming less.
However, "people drink less, but better" and are willing to spend more per bottle.
The main reasons for the decrease in wine consumption are:
Health concerns: Increased awareness of the potential health risks associated with alcohol consumption is leading people to drink less wine.
Economic factors: Inflation and the rising cost of living are causing consumers to be more mindful of their spending on discretionary items like wine.
Generational shift in drinking habits: Younger generations are reportedly consuming less wine than their parents, possibly due to different social norms and a greater focus on health and wellness.
Wine producers should consider doing:
Focus on Quality and Premium Offerings: Since consumers are drinking less but potentially better, wine producers should invest in producing higher-quality wines that can command a higher price point and appeal to those seeking a more premium experience.
Explore Non-Alcoholic and Low-Alcoholic Options: With growing health awareness and a segment of the population choosing to reduce or eliminate alcohol consumption, producers should consider developing and marketing non-alcoholic or low-alcohol wine alternatives to cater to this expanding market.
Understand and Engage Younger Generations: Since younger people are consuming less wine, producers need to understand their preferences and drinking habits. This might involve different styles of wine, alternative packaging, or marketing strategies that resonate with this demographic.
Emphasize Mindful Consumption: Marketing efforts can focus on the enjoyment of wine in moderation and the quality of the experience, rather than promoting heavy consumption.
Consider Diversification: Some wine producers might explore diversifying their product portfolios to include other types of beverages that are gaining popularity.
Highlight Unique Terroir and Craftsmanship: Emphasizing the unique characteristics of their wines, such as the specific region (terroir) and the traditional or innovative winemaking techniques used, can appeal to consumers who value authenticity and quality.
Key takeaway: Worldwide wine consumption has hit a 60-year low, driven by health and economic concerns and a generational shift in drinking habits, presenting significant challenges and uncertainties for the global wine industry, particularly in major markets like the US and Europe.
Main trend: The Global Decline in Wine Consumption and Shifting Drinking Habits
Description of the trend (please name it): The Wine Demystification and Diversification. This trend describes the ongoing decrease in overall wine consumption globally, driven by factors such as increased health awareness, changing social norms around alcohol, and economic pressures. Simultaneously, it highlights a diversification in drinking habits, with a generational shift towards lower volumes but potentially higher quality, and a growing interest in alternative beverages.
What is consumer motivation: Consumers are increasingly motivated by health concerns related to alcohol consumption, prompting some to reduce or abstain from drinking wine. Economic pressures are also leading people to be more mindful of their spending on discretionary items like alcohol. Additionally, younger generations may have different social norms around drinking compared to previous generations, with a potential preference for other types of beverages or activities.
What is driving trend:
Increased Health Awareness: Growing public knowledge about the potential health risks associated with alcohol consumption is leading to a decline in overall intake.
Changing Social Norms: Younger generations may have different social attitudes towards alcohol, with a greater emphasis on health and wellness, potentially leading to reduced drinking.
Economic Pressures: Inflation and cost of living increases can lead consumers to cut back on non-essential spending, including alcoholic beverages.
Rise of Alternative Beverages: The market for non-alcoholic and low-alcoholic beverages is expanding, offering consumers more choices.
Shifting Lifestyles: Changes in lifestyle and leisure activities may also contribute to decreased wine consumption.
What is motivation beyond the trend: While consumption is down, the article notes "people drink less, but better," suggesting a focus on quality over quantity. This could be driven by a desire for more premium experiences when alcohol is consumed.
Description of consumers article is referring to (what is their age?, what is their gender? What is their income? What is their lifestyle): The article indicates a global trend but specifically mentions a "generational" fall in drinking, with younger people (likely Millennials and Gen Z) consuming less wine than their parents (likely Gen X and Baby Boomers). The impact of economic factors suggests that consumers across various income levels may be reducing their wine consumption due to financial pressures. The trend is observed across different lifestyles globally, although specific consumption patterns may vary by region and culture.
Conclusions: Global wine consumption is significantly declining, driven by a combination of health concerns, economic factors, and a generational shift in drinking habits, with a possible trend towards lower volume but higher quality consumption.
Implications for brands:
Wine Producers: May need to adapt their production and marketing strategies to cater to lower overall consumption, potentially focusing on higher-quality products and exploring alternative beverage categories.
Retailers: Need to adjust their inventory to reflect changing consumer demand and consider the rise of non-alcoholic and low-alcoholic options.
Hospitality Industry: Restaurants and bars may see a decrease in wine orders and should consider diversifying their beverage offerings.
Implication for society: The decline in wine consumption could have implications for cultural traditions associated with wine and the economies of wine-producing regions.
Implications for consumers: Consumers may have more choices in the beverage market, with a growing availability of non-alcoholic and premium options.
Implication for Future: The "Wine Demystification and Diversification" trend suggests that the wine industry will continue to face challenges related to declining consumption and will need to innovate and adapt to remain relevant in a changing beverage landscape.
Consumer Trend (name, detailed description): The Mindful Drinker: This trend describes consumers who are more conscious about their alcohol consumption, often choosing to drink less overall, opting for higher-quality beverages when they do drink, or exploring non-alcoholic alternatives for health and lifestyle reasons.
Consumer Sub Trend (name, detailed description): The Gen Z Alcohol Evolution: Younger generations are exhibiting different drinking habits than previous generations, often consuming less alcohol or abstaining altogether, driven by factors like health consciousness and social norms.
Big Social Trend (name, detailed description): The Growing Focus on Health and Wellness: A global societal trend towards prioritizing health and well-being is influencing various consumer behaviors, including the consumption of food and beverages.
Worldwide Social Trend (name, detailed description): The trends of declining alcohol consumption and a focus on health and wellness are observed in many parts of the world.
Social Drive (name, detailed description): The Desire for Health, Well-being, and Financial Prudence: These underlying drives are contributing to the decrease in wine consumption and the shift in drinking habits.
Learnings for brands to use in 2025 (bullets, detailed description):
Acknowledge the trend of lower overall wine consumption.
Focus on quality and premium offerings.
Consider expanding into non-alcoholic and low-alcoholic beverage options.
Understand the drinking habits of younger generations.
Strategy Recommendations for brands to follow in 2025 (bullets, detail description):
Wine producers should invest in producing higher-quality wines that justify a higher price point.
Retailers should allocate more shelf space to non-alcoholic and low-alcoholic beverages.
Marketing efforts should focus on mindful consumption and the enjoyment of quality over quantity.
Final sentence (key concept) describing main trend from article: The significant drop in worldwide wine consumption highlights "The Wine Demystification and Diversification" trend, marked by lower overall intake and a shift in drinking habits towards quality over quantity and alternative beverages.
What brands & companies should do in 2025 to benefit from trend and how to do it: In 2025, wine producers and related businesses should adapt to "The Wine Demystification and Diversification" trend by:
Focusing on producing and marketing higher-quality, premium wines to cater to consumers who are drinking less but better and are willing to spend more for a superior product.
Exploring and investing in the growing market for non-alcoholic and low-alcoholic wine alternatives to appeal to the increasing number of consumers who are choosing to reduce or eliminate their alcohol consumption.
Developing targeted marketing strategies that acknowledge the changing drinking habits of younger generations and emphasize mindful consumption and the enjoyment of wine in moderation.
Final note:
Core Trend: The Wine Demystification and Diversification: Global decline in wine consumption and shifting drinking habits.
Core Strategy: Focus on Quality, Explore Alternatives, and Acknowledge Mindful Consumption: Adapting to changing consumer preferences in the beverage market.
Core Industry Trend: The Growing Awareness of Health and Wellness Influencing Alcohol Choices: A significant factor impacting consumer behavior in the beverage sector.
Core Consumer Motivation: Desire for Health, Well-being, and Mindful Spending: Driving the shift towards lower wine consumption and alternative options.
Final Conclusion: The significant decline in global wine consumption signals a fundamental shift in drinking habits, requiring the wine industry to innovate and adapt to a consumer base that is increasingly health-conscious, financially prudent, and exploring a wider range of beverage options.
Core Trend Detailed: The Wine Demystification and Diversification
Description: The Wine Demystification and Diversification trend describes the ongoing decrease in overall wine consumption globally, driven by factors such as increased health awareness, changing social norms around alcohol, and economic pressures. Simultaneously, it highlights a diversification in drinking habits, with a generational shift towards lower volumes but potentially higher quality, and a growing interest in alternative beverages.
Key Characteristics of the Trend (summary): Global wine consumption is declining, with a shift towards lower volume but potentially higher quality and an increased interest in alternative drinks.
Market and Cultural Signals Supporting the Trend (summary): The article cites the over 60-year low in worldwide wine consumption in 2024, the decrease in sales in major markets like the US and Europe, and the reported generational fall in wine drinking as signals of this trend.
How the Trend Is Changing Consumer Behavior (summary): Consumers are becoming more health-conscious and financially prudent in their alcohol choices, leading to reduced wine consumption and a greater exploration of non-alcoholic and premium options.
Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, summary):
For Brands and CPGs: Wine producers may focus on higher quality and explore alternative beverages.
For Retailers: Retailers need to adjust inventory to reflect lower wine demand and the rise of alternatives.
For Consumers: Consumers have more beverage choices, including non-alcoholic and premium options.
Strategic Forecast: The "Wine Demystification and Diversification" trend suggests that the wine industry will continue to face challenges related to declining consumption and will need to innovate and adapt to remain relevant in a changing beverage landscape.
Final Thought: The significant drop in worldwide wine consumption highlights "The Wine Demystification and Diversification" trend, marked by lower overall intake and a shift in drinking habits towards quality over quantity and alternative beverages.
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