There’s an elephant in the room. The wine industry is at an impasse. Global alcohol consumption is tanking, it’s no secret. Younger generations are drinking less than those before them. But what is the wine industry doing?
Understanding the reasons behind this decline – a thorny combination of health concerns, social media and public image, variety and choice, and financial insecurity – and addressing the way drinking behaviours are changing, could help the industry (one not known for its ability to enforce change quickly) adapt to survive.
Health-conscious consumers
Health and wellness trends are driving moderation and abstinence. Robust messaging around the negative health impact of consuming any amount of alcohol has turbo-charged the debate. According to the World Health Organisation, as of January 2023 ‘there is no safe amount of alcohol that does not affect health’.
Younger generations are much more aware of what affects their health and well being than the generations before them were at the same age. Gen Zs in particular (born between 1997 and 2012) are assailed by a surfeit of information and data.
Erica Duecy, founder of the Business of Drinks podcast and consultancy (and a GenXer), says that more than half of Gen Zs and Millennials (those born between 1981 and 1996) in the US see even moderate drinking – one or two drinks a day – as unhealthy. In the UK, about a third of Gen Zs do not drink at all, according to marketing intelligence agency Mintel.
Looking after both physical and mental health through moderation was the second most prevalent consumer sentiment around changing global alcohol consumption behaviours, according to drinks market analysts IWSR’s BevTrac, based on data gathered in the six months to April 2023.
Social media strains
Social media can perpetuate these sentiments: ‘The depiction of success and what a good life looks like has changed so much recently and has been fired up by social media,’ says Jarlath Curran, Decanter’s wine logistics manager and a Millennial. ‘Everybody is beautiful, fit and healthy,’ he adds – and for many, alcohol doesn’t align with these goals.
Ben Franks, also a Millennial and chief commercial officer of Canned Wine Co, echos this: ‘There’s a lot of pressure on social media where everyone is expected to be super healthy, super successful, and always achieving constantly. That makes us hyper-aware of our health.
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