Global wine consumption falls as inflation bites and younger consumers drink less

 

Global wine consumption plummeted to a seven-year low in 2025 as the industry grappled with a volatile cocktail of inflationary pressure, shifting generational habits, and geopolitical instability. 

According to the annual review released on May 12 by the International Organisation of Vine and Wine (OIV), worldwide intake dropped 2.7 percent last year to 208 million hectolitres, marking a cumulative decline of 14 percent since 2018.

The trade body attributed the downturn to a combination of long-term lifestyle changes and a harsh economic climate that has eroded consumer purchasing power.

 

In mature markets, evolving social preferences and a move away from alcohol among younger demographics have fundamentally altered demand. 

These internal shifts have been exacerbated by external shocks, including trade disruptions and the lingering effects of global inflation, which have hit discretionary spending across the board.

The decline was felt most acutely in nine of the world’s top ten wine markets, with the United States, France, and China driving much of the volume loss. 

In the United States, the world's largest consumer, demand fell by 4.3 percent. 

OIV Director John Barker noted that while a weaker dollar and past trade tariffs played a role, the primary drivers remained reduced purchasing power and a burgeoning preference for a wider variety of alternative alcoholic beverages. 

Meanwhile, France saw a 3.2 percent dip, and China’s market continued its dramatic contraction, falling 13 percent last year and a staggering 61 percent since 2020.

Despite the cooling demand, global production rose slightly by 0.6 percent to 227 million hectolitres, though officials noted this increase followed a historically poor harvest in 2024. 

The OIV emphasized that the industry is at a crossroads, needing to pivot from a volume-driven business model toward "premiumisation"—a strategy focused on higher value, exclusivity, and quality rather than sheer quantity.

Industry experts suggest that survival will depend on rapid innovation to meet modern tastes. 

Ananda Roy, vice-president at market research firm Circana, argued that the sector must look beyond traditional packaging to embrace trends such as high-quality bag-in-box options, smaller bottle sizes, and the "NoLo" (no- and low-alcohol) category. 

While Barker estimated that NoLo wines currently represent only one to two percent of the global market, he highlighted that technological advancements in the field are developing quickly as the industry seeks to recapture the interest of a changing consumer base.

Source: CNA

Image source: iStock/Krilerg