Upon the annual release of the Silicon Valley Bank State of The Wine Industry Report, conversations sparked among marketing teams about the future of wine sales. The annual report addresses 2021 sales, predictions, and mistakes. Analyzing the market of wine and spirits, there is a major difference in what various generations are choosing to spend their extra cash to sip on.
Millenials vs. Boomers
In 2022, the oldest range of the millennial generation will be turning 40 years old. How does this change in age among U.S. drinkers of wine and spirits alter the wine market? Boomers have been loyal fans of the wine industry, consistently signing up for wine club memberships and spending vacation time on vineyards around the world. Prioritizing status, displaying their wealth and success, caring about harvest dates, pH levels, wine scores, the story of the wine maker; all qualities of the boomer wine drinker and often the self-proclaimed connossieur. On the other side, the values of a wine drinker who fits into the millennial or Gen Z generations find themselves looking for companies who support different concepts than traditional methods.
The Values of a Young Wine Consumer
- Sustainability
- Health and Environmental Issues
- Social Justice
- Equity and Diversity
- Sourcing Local and Plant-Based Products
- Fair wages and equal pay
- Clean, Natural, Non-GMO
- Recycling and Water Re-use
- Anti-pesticide: No Glyphosate
- Biodynamic and Organic Farming
- LEED Certification
- Carbon Neutral, Carbon Neutral Plus
Where is the wine market right now?
Sourced from the SVB annual report, the wine industry has struggled to compete with beer and spirits among various generations after boomers. Check out the figures from the 2021 report highlighting consumption and demographics:
2022 Predictions
Moving into another year of competing with beer and spirits preferences, the wine industry needs to target the Gen Z and millennials generations to keep up. By marketing to the specific needs, wine marketing and advertising need to alter bottle design to highlight the transparency of sourcing, fair wages, calorie counts, and many other factors young wine consumers look for. Less focused on displaying wealth and success, young wine fans want clarity on the company that is producing their favorite wine. Companies and vineyards need to focus on supporting social justice movements in the United States and committing to a sustainable future of carbon neutral. Gen Z and millennials have the power to shape and change the future of the wine industry for the better.
