Global Wine Trends
Winemaking is a business, and the goal of any business is to make a profit. In order to make a profit in winemaking, you need to sell your wines. Time passes, generations change, and with them consumer preferences and tastes and, accordingly, the demand for wine. What was popular 10-15 years ago may be difficult to sell tomorrow. To successfully develop your own wine business, you need to understand and follow wine trends. Especially internationally, since fashions from abroad arrive in Russia sooner or later. And this is not only connected to winemaking but also to other spheres of life. It is important for winemakers and marketers to know what kind of wines will be drunk in the future, from what packaging and where.
So, let's take a look at some of the currently most popular global wine trends.
Low-alcohol and non-alcoholic wines
This is a photo of Irene Falcone, an Australian entrepreneur, who launched the Nourished Life natural cosmetics online store in 2012, spending $100 on it and then selling it for $20 million in 2017.
However, for us wine specialists, she is interesting for a different reason. At the end of 2020, Falcone launched an online store called Sans Drinks selling non-alcoholic drinks, including non-alcoholic wines. Its income exceeded $250,000 within its first six weeks of operation, so great was the demand, with over 300 orders per day. She expects to earn more than $4 million by the end of 2021, due to the huge demand for non-alcoholic wines in particular.
This example of Australia and Irene Falcone is interesting because in a country based on alcohol, where rum was the first currency, the fastest growing drinks category is currently non-alcoholic wines. According to international information company IRI, this category was worth was over $4.5 million in 2020, and this category is now becoming so popular and expanding so rapidly that it may be worth $15 million by the end of 2021.
According to IWSR (International Wine and Spirits Research), the global consumption of low-alcohol and non-alcoholic wines has doubled, and the global market for low-alcohol and non-alcoholic beverages is continuing to expand. Their consumption is expected to grow by 31% by 2024.
Lulie Halstead, CEO of Wine Intelligence, says that people buy non-alcoholic and low-alcohol wines for three main reasons: health, control and taste. Consumers are increasingly concerned about their health, they want to control the situation and themselves, and the flavour profile of non-alcoholic wines has improved significantly in recent years.
The main drivers of this trend for non-alcoholic and low-alcohol wines are Gen Z and Millennials, that is people aged 21 to 35. Studies have shown that 3 out of 10 consumers in this age category choose non-alcoholic or low-alcohol wine because they are following a diet, considering their health or want to relax at a party, control the situation, then get behind the wheel and drive home without any problem. Following lockdown especially, people have begun to drink less alcohol, as many abused it during that time.
According to IWSR, Germany, Spain and the United States are pushing growth in the category, with Germany the largest market. The United States is the second and fastest growing (30% growth in consumption in 2020). In general, non-alcoholic drinks are more popular than low-alcohol ones.
Ready-to-drink wines
According to Nielsen, 58% of consumers who bought wine in 2020 drank it on the day of purchase. People are no longer prepared to wait 5-10 years for the wine to reach its peak in bottle; they want to drink it on the day of purchase. Moreover, not everyone has the appropriate conditions for storing wine at home. Therefore, this trend should be considered by winemakers who produce powerful, tannic red wines, which need longer to develop in bottle.
Rosé
Rosé (pink wines) is one of the world’s most popular and rapidly developing categories of wine. The largest consumer countries are France, the USA and Germany.
Who are the main consumers of wines in this category? According to Nielsen, 40% of consumers of rosé wines are women aged 21 to 34 who are very active on social media. They popularise rosé with their selfies and photos with pink wines, thus also explaining the growing demand.
Dry, pale-coloured pink wines are especially trendy, making up more than 50% of the category. Consumers believe that if the wine is pale, then it is light and belongs to the premium category.
The main reasons for the popularity of this category of wine:
- lifestyle and glamour
- lightness and freshness
- beautiful colour
- fun
- availability/price point
- social media (very instagrammable)
- food-friendly - rosé wines pair well with light, healthy cuisine.
The main drivers of this category are also Gen Z and Millennials.
Sparkling wines
The global popularity of sparkling wines is growing every year. This category includes all wines with bubbles, including pink sparkling wines, Petnats (Pét-nat), etc.
Sparkling wine such as Prosecco and other wines made by the tank method should be considered separately. Prosecco is one of the best-selling sparkling wines in the world.
Reasons for the popularity of Prosecco:
- lightness
- freshness
- clarity for the consumer from a flavour point of view
- bubbles, as it is always a celebration
- well-priced
Concerning sparkling wines in general, it is worth noting that they are now drunk all year round as an aperitif, and not only for celebrations. The main drivers of this category are Gen Z and Millennials.
High-quality natural, organic and biodynamic wines
People have begun to take serious care of their health (especially after the pandemic), to think about environmental protection and how to live and work in harmony with nature and are more interested in the ingredients in wine, hence the fashion for authentic wines. Consumers are increasingly thinking about what they drink and how the wine was made. All this affects consumer purchasing behaviour.
Consumers believe that organic and biodynamic practices in the vineyard result in higher-quality grapes, which then produce higher-quality, healthy wines.
Despite relatively higher average retail prices, the volume of consumption of certified organic wines increased on average by almost 9% per year from 2014 to 2019. This was facilitated by the increase in certified vineyard areas, especially in Italy, Spain and France.
The largest markets for organic wines are Germany, France, the United Kingdom, the United States and Sweden. These countries account for more than 60% of global consumption. Looking at the overall picture, according to IWSR, the current share of wines made from organically grown grapes is 2.75% of total global wine consumption. Of course, this figure is small but growing and is expected to increase to about 4% by 2024. As a bottle equivalent, according to Beverage Daily, organic consumption should grow to 1 billion bottles per year by 2022.
In Italy, a new wave of organic and IGT (Indicazione Geografica Tipica - "Protected Geographic Origin”) Tetra Pak wines is aimed at young consumers of legal drinking age interested in quality at a more affordable price.
The main drivers of this category are also Gen Z and Millennials.
Wines in lightweight glass bottles
The international wine expert community has declared a war on heavy glass bottles. In February 2021, Master of Wine Jancis Robinson announced that she and her team would begin to weigh bottles during tastings, record the weight of particularly heavy or light bottles, then criticise or praise producers for their choice. Robinson has stated that it doesn’t matter whether the wine is good or not, heavy bottles have to go.
This idea is also supported in scientific circles, for example by Dr Richard Smart, an Australian viticulture specialist, consultant, author and co-author of more than 380 publications, including the famous work Sunlight into Wine. In 2019, he published an article on JancisRobinson.com about how wine producers and consumers can help reduce wine’s carbon footprint. The most important issue for him was the use of lightweight glass bottles (due to production and transportation). Moreover, according to YouGov, 64% of the British want to reduce their carbon footprint.
Wines in aluminium cans
According to Nielsen, the global sales volume of wines in aluminium cans increased by 61% in 2020, which, according to market experts, will continue to grow.
Both the quality of wines and the number of winemakers using cans are growing. There are vintage wines made from grapes from premium plots (single vineyard) and from organically grown grapes. For example, the cost of a can of Underwood wine (Oregon, USA, 375 ml) is $7, while a brand like SANS costs $25 for a can of Cabernet Sauvignon Napa Valley single vineyard organic wine.
Dr Robert Williams from Wine in a Can Research predicts that there will be more premium wines in cans. When Underwood (Oregon, USA) and Alloy (Paso Robles, USA) started producing wines in cans, in 2013 and 2014 respectively, their goal was craft quality. Thanks to their efforts, the category grew from $6.5 million to $14.5 million between 2015 and 2016.
Why are wines in aluminium cans becoming so popular?
First, it is convenient. You can drink it where it is inconvenient to drink from a glass. For example, by the pool, on the beach (in countries where this is allowed) or at an open-air festival.
Second, it resounds with young people. You can buy a can of wine, put it in your backpack and go and meet friends.
Third, it is a small volume. So, there is no temptation to buy a 750 ml bottle and drink too much, with all the possible negative consequences.
Fourth, they have a rapid recycling lifecycle. This lasts about 60 days, from the moment the consumer buys a can from the store shelf, drinks its contents and disposes of it. It is then recycled and returned to the shelf. The global recycling rate for glass is only about 26.5%, while the global recycling rate for cans is 69%.
Finally, these wines are bought for quick consumption, not for long-term storage.
Considering alternative packaging, sales of bag-in-box wine have been growing rapidly in the United States, the United Kingdom and Japan, while wine in cans sells well in the United States, the United Kingdom and Australia. There is also a new container on the market - a bottle consisting of 94% paper. This is very modern and has proved popular.
Drinking wine at home/e-commerce
The pandemic changed everything, with people becoming much more likely to buy wine via the Internet. Internet sales volumes were 300-500% higher during the pandemic compared to previous periods, and this trend has continued. Why? Because it is convenient: consumers want to choose wine at home, not have to go anywhere and get a delivery at an agreed time. Moreover, drinking at home is cheaper, and price is a key decision criterion. In addition, you may also get good promotions.
Conclusion
Wine trends represent new opportunities and new niches for producers. The main drivers of all wine trends today are Gen Z and Millennials. These two generations are generating new demand, and where there is demand, there must also be supply. If you can't offer something today, then your competitors will do it tomorrow. However, it is also worth remembering that the classics will always remain classics!
LEONID FADEEV, Stage 2 MW Student, WSET / IWSC “The Future 50” winner, Weinakademiker, DipWSET, WorldSom Magister Sommelier, founder of Vine and Wine Consulting