We're over halfway through 2025, and a funny old year it's been.
Unless you've been hiding in Plato's cave for the past year, it's been largely impossible to avoid the onslaught of bad news reports of unfolding terror in various troubled corners of the world.
The wine industry, itself, has not been immune – every day there are headlines saying young people no longer want to drink, that sobriety is now in, the only good alcohol is no alcohol.
Even the world's most prestigious regions have not escaped unscathed with reports of Bordeaux ripping up vines, wildfires growing ever fiercer in California and Champagne facing a glut of unsold wine.
However, against this raw doomspiral, there are some serious signs of hope for the industry. After all, humans have been producing wine since around 6000 BC, we're unlikely to stop any time soon just because of a few societal hiccups.
So what is the good news?
It's a big wine world
It's far from breaking news that traditional wine markets are suffering, as consumption declines around the world. This is down to several factors such as aging populations, an enduring cost of living crisis, and a general move away from alcohol.
According to the IWSR – a global leader in beverage alcohol data and insights – the number of wine drinkers in key markets rebounded after Covid, only to then drop and continue to decline, with a loss of around 5 million consumers between 2021 and 2024. In key markets, like the UK and France, 50 percent of drinkers are 55 or older.
Sales have also fallen worldwide, as the IWSR reports,: "Global sales volumes of wine priced at value level or below fell by 27 percent between 2021 and 2023... This looks likely to continue, with IWSR forecasts predicting growth only in premium-and-above price tiers between 2025 and 2027."
In an unfortunate tandem with the decline in consumption, production costs have also risen. Like most industries, the wine industry is far from immune to the cost-of-living crisis.
As reported by the BBC back in 2023, the rising cost of glass production has been heavily impacted by Russia's war against Ukraine, which has had a significant impact on the wine industry. Costs surrounding cork production, labels and printing have also spiraled.
There is also an ongoing shortage of laborers that has been impacting the industry for several years. As reported by ProWein, "almost every other company (45 percent) in the wine industry reports having been affected by staff shortages over the last two years (2021 and 2022)."
The 2019 Covid pandemic restrictions were the initial roadblocks but other factors like salary offered versus cost-of-living crisis have also had an impact.
The declining birth rates – as reported by ProWein – are also having an impact on labor, as Boomers exit the workforce with no one to take over the reins.
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