Recent numbers from Yountsville, CA by Wine Opinions report a continued decline in wine consumption, with less than one percent growth this year, the lowest it has been since 1993. Market research attributes the decline to economic troubles and the millennial male preference for craft brew and spirits.
Let’s take a quick look at the current consumption demographics: The Millennial Generation (Ages 21-38) is now 70 million strong, running close to the 77 million Baby Boomers, many of which are aged closer to retirement and reduced alcohol consumption. Since the 2008 recession, men in their 20s have spent severely less in restaurants & high end booze, with craft brews & spirits hitting their sweet spot with exciting beverages for $10 or less.
With craft beer becoming popular among young males, the cheap wine market is where most of the sales got hit. Expensive top-end wines are still widely popular, with a 15% predicted increase this year in the Silicon Valley. Wine regulars from the older generation are still keeping the wine consumption in the positive, but with current trends and the rise in the “iGeneration” (Ages 6-20) coming into the alcohol market with 61 million consumers, the numbers are predicting a generation shift to other alcoholic markets. Apps like Untappd help local craft beers become widely popular in pop-ups amongst younger drinkers.
Overall, wine consumption is still in the positive and holds a secure position in total alcoholic beverage sales, but what these numbers display is that these few upcoming years may be the turning point in the trend that has become the craft beer generation. With cheap wine sales down, will wineries try to market to the younger male generation?