A recent Silicon Valley Bank report found that the U.S. wine industry is struggling to reach younger consumers. The trend of sober-curious, Dry January, and Sober September is contributing to the decline in wine consumption among younger generations, who have more beverage options than the Boomers did when they began drinking.
The study calls for the wine industry to embrace issues younger consumers care about, such as wellness, sustainability, and social responsibility, as well as make their ingredients and nutritional data more transparent.
Eric Asimov of the New York Times believes that while wine may never play the same role for younger consumers as it has for older people, it can still do better.
What Others Can Learn From the Study about the U.S. Wine Industry
- Younger consumers are opting for spirits, beer, alternative beverages, or alcohol abstinence over wine.
The sober-curious trend is popularized by events such as Dry January and Sober September, which are having an impact on younger generations who are increasingly choosing to abstain from alcohol. This is backed up by a Berenberg Research study cited by Business Insider, which found that both Gen-Zers and Millennials are drinking less than older generations due to anti-alcohol messaging and personal reputation fears.
- Younger consumers have more beverage options than Boomers did when they began drinking.
When the Boomers began drinking, wine coolers like Bartles & Jaymes served as “gateway” beverages introducing them to wine. Now, younger generations are turning to hard seltzers and ready-to-drink cocktails as better options for beginner alcohol drinkers than less affordable and trendy wine options.
- Wine needs to embrace issues that younger consumers care about.
The SVB study argued that the wine industry needs to be louder in its messaging and embrace issues that younger consumers care about, such as wellness, sustainability, and social responsibility. It called on producers to list their ingredients and offer nutritional data, such as calories per serving, to support transparency, although the industry has resisted such labeling.
- Existing wine advertising is mainly directed at older consumers.
The study found that existing advertising for wine is mainly directed at older consumers and “selling white-linen hospitality and gracious living, with a nod to the lifestyles of the rich and famous in many cases — information that’s interesting to wine geeks and consumers over 60 but probably not to the vast majority of potential customers.” This means that the wine industry needs to focus on creating targeted messaging for younger generations instead of relying on the same advertising for older consumers.
- Wine still has potential for younger generations.
Though Eric Asimov of the New York Times believes that wine will never play the same role for younger consumers as it has with older people, he still believes that it can do better. This means that there is still potential for the wine industry to reach younger generations through targeted messaging, embracing values they care about, and creating more appealing products.
