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The wine industry in the US is facing declining volume sales, with a 3% decrease last year, and millennials and Gen Z showing less interest in wine compared to older generations. According to Silicon Valley Bank, 58% of consumers over the age of 65 favored wine, while millennials and Gen Z prefer wine nearly 30 percentage points lower. This generational shift is a result of younger consumers prioritizing healthier lifestyle choices.
We have not done a great job as an industry around making wine approachable and relevant to younger consumers.
The decline in wine sales can be attributed to the industry's failure to connect with younger consumers and make wine appealing to them. According to Tom Steffanci, president at Deutsch Family Wine & Spirits, the industry has not received high marks in this regard. Moreover, there is a trend of drinking less among Americans, with beer consumption hitting a decades-low level and a movement towards non-alcoholic options and cannabis. Millennials and Gen Z are particularly concerned about wellness and what they consume, which has contributed to their lower preference for wine.
The younger generations are very much concerned about wellness and what they put into their bodies.