Wine consumption is changing. The industry hopes new trends will help it

Global wine consumption has been on a steady decline in recent years — and it’s forced the wine industry to adapt. Organic and orange wines, non-alcoholic options and high-end fine vintages are all seeing increased demand, as growing health awareness and rising inflation hit consumer habits.

Global wine production is expected to have fallen around 2% last year, hitting its lowest levels since 1961, according to the International Organization of Wine and Vine’s 2024 World Wine Production Outlook. Climate issues and adverse weather events played a big part in this drop, the industry organization said — especially in France, where output fell so significantly it was described as “substantially influencing the worldwide wine supply.”

The decline in production has come hand in hand with a fall in consumption, following both economic challenges and changes in drinking behavior. The latest statistics show that world wine consumption dropped by 2.6% in 2023 compared to 2022, when it was “already low.”

“People are actively trying to drink less,” Richard Halstead, COO of consumer research at alcohol industry research firm IWSR. While spirits like cognac and whiskey are still reserved for special occasions, drinks like wine and beer — which used to be the daily go-to — are feeling the pinch, he explained.

It’s sparked a change of focus for many in the wine industry, as wine becomes less of an everyday beverage and more of an occasional treat.

“The industry is thinking on how people can spend a bit more money on it, by making the product more interesting. You see characteristics like natural, organic, orange, low-intervention, wine a bit more artisanal in nature.” Halstead said. “People want to be in control, they are more interested in the product itself, rather than it simply being an alcohol delivery mechanism.”

This more specialized interest has driven growth in what used to be niche areas of winemaking. According to a study by market research firm Horizon, the size of the organic wine market will see a compound annual growth rate of 10.3% between 2024 and 2030, with Europe generating the largest revenue.

Orange wine — made when the skins are left on white wine grapes for longer — has also been enjoying significant growth.

Tatiana Fokina, CEO of Hedonism Wines, a spirits shop in Mayfair known for its rare offerings, said she has witnessed major shifts in wine sales since the store opened in 2012. In particular, she said people had started taking a deeper interest in finding out about the production process and origins of the wine they consume.

“I think people are much more educated about what they’re drinking. They are having better developed palates, they are learning a bit more about complex wines, possibly higher-level wines, rather than buying more of simple,…