Unlocking Growth Opportunities in a Dynamic Wine Market

In the world of fine dining and social gatherings, wine has long held a place of honor, gracing dinner tables in high-end restaurants and cozy homes alike. Its rich flavors and cultural significance have made it a preferred choice for those seeking a flavorful indulgence, whether paired with a gourmet meal or enjoyed during a casual evening with friends.

Despite its esteemed status, wine is experiencing a notable contraction. According to IWSR, a leading source of data, analysis, and insights on the global beverage alcohol market, the number of wine drinkers in key markets globally has fallen by 5 million people between 2021 and 2024, despite population growth. This decline is particularly pronounced in mature markets like the US, UK, France, and Portugal, where younger consumers are not entering the wine category at the expected rate. In the United States, for instance, IWSR notes that wine volumes have already plummeted by 14% between 2019 and 2024. Despite this downturn, emerging trends reveal pockets of opportunity that wine producers can leverage to drive growth and offset category decline.

Understanding the Decline in Wine Consumption

The decline in wine consumption is driven by multiple factors. IWSR consumer research highlights health-related moderation as a primary cause, with 40% of consumers in 17 key markets reporting reduced wine intake due to lower overall alcohol consumption. Financial considerations also play a significant role: 28% aim to cut spending on wine, and 23% cite rising wine prices as a deterrent.

Using Premiumization as a Path to Value Growth

Despite volume declines, premiumization remains a bright spot. In the United States, where wine volumes dropped by 14% over the past five years, losses were concentrated in standard and low-price tiers. In contrast, premium-plus segments—premium ($9.50–$15.49), super-premium ($15.50–$24.99), and ultra-premium ($25.00–$49.99)—demonstrated greater resilience. Globally, between 2021 and 2023, value-priced wine sales fell by 27%, while premium segments remained relatively stable, according to IWSR data.

Marten Lodewijks, President US at IWSR, attributes this trend to optimistic consumer sentiment among remaining wine drinkers, who are willing to invest in higher-quality wines. “As consumers spend more, they rely heavily on recommendations to ensure their purchases deliver value,” Lodewijks notes. Brands can capitalize on this by emphasizing quality, storytelling, and trusted endorsements to justify premium pricing.

Engaging Younger, High-Value Consumers

While younger legal drinking age (LDA) consumers are less likely to drink wine, those who do are highly engaged and willing to spend more. IWSR research shows that these younger drinkers exhibit greater involvement than the Boomer generation (over 60s), who dominate current consumption but report lower engagement. This shift offers a silver lining: as enthusiastic younger LDA consumers replace less involved ones, overall category involvement is rising.

Millennials, now in their prime earning years, represent another high-value segment. IWSR data indicates that Millennials who regularly drink wine purchase more expensive options than the market average. To attract and retain these consumers, brands should focus on personalized experiences, such as pop-up events, wine dinners, and wine clubs, while leveraging diverse purchasing channels to enhance engagement and build loyalty through storytelling.

Capitalizing on The Rise of No/Low-Alcohol Wine

The no/low-alcohol wine category is experiencing robust growth, offering a significant opportunity for producers. In 2024, the top 10 global markets (Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, UK, and US) saw a 13% increase in non-alcoholic wine sales, building on strong gains in recent years. Between 2022 and 2024, 61 million consumers adopted no-alcohol beverages, and 38 million embraced low-alcohol options, according to IWSR’s No- and Low-Alcohol Strategic Study.

This trend is set to continue, with a forecasted CAGR of +7% for no-alcohol beverages from 2024 to 2028, compared to just +1% for TBA. Notably, no/low sparkling wine dominates, accounting for 70% of global no/low wine volumes. However, low-alcohol still wine is emerging as a high-potential category, with a CAGR of +22% from 2018 to 2023 and a projected +15% from 2023 to 2028. Producers should consider expanding their portfolios to include no/low options to capture this growing market.

Strategic Opportunities for Growth

The challenge for wine producers is to identify growth opportunities across categories, price tiers, and markets. By focusing on premiumization, engaging younger and Millennial consumers, and investing in no/low-alcohol offerings, brands can offset volume declines and drive value growth. Tailored marketing strategies, such as personalized experiences and localized engagement, will be critical to building awareness and loyalty.

Aseptic Cartons as a Growth Driver for Wine Brands

As brands deploy a number of strategies to turn around their wine fortunes, they should also keep in mind that consumer attitudes toward sustainability are evolving, with eco-friendly packaging becoming a significant purchase driver. According to the 2024 Innova Consumer Survey, 27% of global consumers consider sustainable packaging a top priority when buying food and beverages. This aligns with broader trends observed in other studies, such as PwC’s 2024 Voice of the Consumer Survey, which found that consumers are willing to pay a 9.7% premium for sustainably produced goods despite economic pressures.

Manufactured primarily from renewable paperboard, aseptic cartons are readily recyclable and significantly lighter than traditional glass bottles, enabling substantial reductions in transportation-related emissions and storage costs. These benefits position aseptic cartons as an attractive option for wine producers seeking to balance environmental responsibility with economic viability.

The wine industry is already embracing aseptic cartons, as evidenced by a robust +8.45% compound annual growth rate (CAGR) in the share of new wine launches packaged in this format between 2020 and 2024, according to Innova Market Insights.

How Lamipak Supports Success

Beyond supply of Aseptic packaging in various trending formats, Lamipak empowers beverage producers to seize these opportunities through expert guidance and innovative packaging solutions. By partnering with leading market research and consumer insights firms, we deliver actionable strategies to develop standout products and marketing campaigns that resonate with evolving consumer preferences.

Speak to us today to explore how we can help you create compelling products and strategies tailored to your market’s needs, unlocking growth in a challenging wine landscape.

Sources

The IWSR. (2025). Five key trends defining opportunities in the global wine market in 2025. https://www.theiwsr.com/insight/five-key-trends-defining-opportunities-in-the-global-wine-market-in-2025/

Drinks Intel. (2025). How is beverage alcohol surviving 2025 in the US market? https://drinks-intel.com/cross-category/how-is-beverage-alcohol-surviving-2025-in-the-us-market-intel/

PWC (2024) Voice of Consumer Survey https://www.pwc.com/gx/en/news-room/press-releases/2024/pwc-2024-voice-of-consumer-survey.html

Innova Market Insights Consumer Survey (2024) Which packaging related aspects positively influence your product choice