The wine industry is experiencing an existential crisis

Like Emily in Paris, the wine industry is trying to figure itself out amid a series of challenges. Global demand is declining – falling last year to its lowest level since 1996 – while supply issues persist.

State of the industry: Global wine consumption in 2023 was 221 million hectoliters, down from ~247 million hectoliters in 2017, according to the International Organization of Wine and Vine. That equates to ~3.5 billion fewer bottles being drunk.

The why: In 2023, global supply fell to 237 million hectoliters, the lowest in 60+ years, due to poor weather and widespread fungal diseases in both the Northern and Southern Hemispheres. This drop in supply led to an increase in prices, cooling demand.

But… There are signs this relatively short-term drop in consumption is actually a long-term issue the industry needs to address. While Boomers tend to love wine (“you had me at merlot”), Gen Z and millennials prefer other drinks instead.

• 58% of consumers over the age of 65 favor wine over other alcoholic beverages, according to Silicon Valley Bank. That figure falls to ~38% for Gen Z and millennials.

📸 Big picture: In an attempt to win over customers, especially younger ones, the wine industry is dipping its toe into the growing nonalcoholic beverage market as well as leaning into marketing. An international campaign dubbed "Come Over October" ran last month as a counter to "Sober October," encouraging people to invite friends over for a glass of wine and a chat.