From Fortune:

The US wine industry is in decline, losing customers to other industries and age groups. For the first time in 45 years, sales of spirits have surpassed wine sales in the US, with cannabis and non-alcoholic options gaining popularity among younger consumers. The decline in sales is driving prices up, especially in Napa, where tastings cost an average of $81.

In the last three years, wine sales have been continuously declining. The industry is in the midst of a crisis, facing a decline in its customer base, while other alcoholic beverages and cannabis use are on the rise. The report also indicates that only 58% of consumers over the age of 65 prefer wine, while the younger demographic is far less interested.

The report warns that the ongoing decline of wine consumers, particularly in younger generations, will eventually lead to overproduction in vineyards and a surplus of wine. Ultimately, this could result in a significant decrease in prices.
It’s clear that the wine industry needs to evolve and adapt to attract a more diverse population of consumers to contend with falling sales.

Rising interest in non-alcoholic options, declining interest in wine in younger generations, and high prices in regions like Napa indicate a crisis in the wine industry. This can also lead to an oversupply of planted vineyards, causing discounting and price reductions in the future. Wine producers need to evolve and attract a more diverse population of consumers.



Read more: Boomer-centric wine industry at a crossroads as Gen Z turns away from alcohol