Beyond the ongoing debate about whether a glass of wine a day is good for your health, significant changes are happening in the wine sector. Although production levels are stable, many bottles remain in cellars due to a decrease in consumer demand.
We drink less wine. According to the International Organization of Vine and Wine, people consumed 5.9 billion gallons of wine globally in 2023. This is a substantial decline from 6.5 billion gallons in 2017.
Image: International Organization of Vine and Wine
A significant decline. Axios reports that this translates to 3.5 billion fewer bottles sold globally. As shown in the graph above, this drop in consumption has brought levels down to the lowest they’ve been in nearly 25 years.
Wine consumption in the U.S. The decline in wine consumption is even more pronounced in the U.S. According to the study, while it decreased by 1.8% globally in 2023, the country’s consumption declined by 3.0% during the same period. The U.S. ranks behind China, Argentina, and Canada, some of the countries where consumption has fallen more significantly compared to 2022. Nonetheless, the U.S. is still the world’s largest wine market.
New generations are less interested. In 2023, The Wine Economist pointed out that baby boomers (those born between 1946 and 1964) have traditionally been the largest group of wine consumers in the U.S. However, as this generation buys less wine, younger generations aren’t stepping in to take their place.
Alcohol is losing its appeal. A few years ago, the “Sober Curious” movement started to make sobriety a trend. Being sober has become fashionable, with campaigns like Dry January in the United Kingdom to encourage people to avoid alcohol for an entire month. This initiative has spread to several European countries. In places like Canada and the Czech Republic, it has even inspired Dry February.
Wine is expensive. Another contributing factor to the decline in wine consumption is rising prices. Inflation has severely impacted the wine sector, leading to increased prices. According to experts, this has prompted some consumers to opt for cheaper alcoholic and non-alcoholic beverages instead.
Image | Denis Sousa
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