There's too much wine and not enough wine drinkers
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Illustration: Maura Losch/Axios
A global decline in wine consumption is creating problems for vineyards: there are too many grapes, and there’s too much wine.
Why it matters: The wine industry is adjusting to a new normal — one that leaves the fates of hundreds of long-standing businesses, thousands of acres of land and tanks and tanks of wine hanging in the balance.
The big picture: Global wine consumption in 2023 was 221 million hectoliters — down from around 247 million hectoliters in 2017, according to the International Organization of Wine and Vine.
- That’s the equivalent of around 3.5 billion fewer bottles of wine.
Zoom in: "In the U.S., the prime wine-consuming generation has been Baby Boomers, and as they buy less wine, that's not entirely being replaced by the younger generations," says Mike Veseth, an industry-watcher who runs The Wine Economist.
- More Americans — especially young people — are choosing to drink less or not at all. Dry January is turning into Dry February, and Sober October is picking up steam.
- Plus, inflation has hit wine, which isn't the cheapest drink to begin with. And people might be turning to cheaper beverages — alcoholic or not, Veseth says.
- As a result, wineries are closing, wine producers are leaving grapes unpicked or pulling crops out of the land, and tanks of bulk wine are sitting in reserves.
What we're watching: The wine industry is attempting to bring customers back.
- This year, there was an international marketing campaign, dubbed "Come Over October," that ran counter to "Sober October" and encouraged people to invite friends over for a chat and a glass of wine.
Winemakers also want a bigger slice of the growing non-alcoholic beverage market, which has thus far been dominated by beer and cocktails.
- Vineyards could pivot to non-alcoholic wine or add it to their offerings. And the excess wine in their stores can be de-alcoholized, Veseth says.
- Ultimately, though, the key will be turning more young people into wine drinkers.
