The European wine industry finds itself at a pivotal moment. Once considered a symbol of cultural tradition and steady demand, wine now faces stiff competition from an increasingly diverse beverage market. Consumers—particularly Millennials and Gen Z—are shifting their preferences towards alternatives such as craft beer, spirits, and functional beverages. This is reshaping how European winemakers think about product development, marketing, and long-term strategy.

The decline in traditional consumption patterns is evident across several of Europe’s major markets. At the same time, winemakers are experimenting with new formats and blends to reconnect with younger audiences, seeking to balance heritage with innovation.

Declining Consumption Across Europe

United Kingdom:

Wine consumption in the UK peaked in 2009 but has since trended downward. Pandemic years provided only temporary relief. By 2023, overall alcohol consumption volumes had dropped by 2%, with wine and spirits recording a steeper 4% year-on-year decline. The market signals an ongoing adjustment, with price sensitivity and lifestyle shifts impacting consumer choices.

France:

Even in France, where wine is embedded in national culture, consumption is shrinking. Between August 2023 and August 2024, still wine sales fell by 4.3% in volume and 1.8% in value. Red wines bore the brunt, with a 7.2% volume decline. Changing health perceptions, alongside growing interest in lighter alternatives, appear to be eroding red wine’s once-dominant position.

Italy:

Italy shows a more stable picture but not without challenges. In 2023, total wine consumption was estimated at 23 million hectolitres. However, sales in the Organized Large Distribution sector contracted by 2.5% in early 2024. Per capita consumption is expected to stabilise at 26.3 litres in 2024, suggesting that although wine retains cultural relevance, consumer habits are becoming more restrained.

Spain:

Spain experienced a modest rebound, with wine consumption up 2.8% year-on-year as of October 2024. Yet, this recovery remains below pre-pandemic levels. With per capita consumption at just 7.9 litres in 2023, the long-term trend still reflects decline. By September 2024, demand had already dipped again by 2.3%, underscoring the fragile nature of recovery.

Germany:

Germany also reflects contraction. From August 2023 to July 2024, wine purchases declined by 4% in volume and 5% in revenue, with domestic wines particularly affected. Per capita consumption among those over 16 years old stood at 22.2 litres, down by 0.3 litres from the previous year. These figures point to a shrinking and highly competitive market.

Strategies to Attract Younger Consumers

The ongoing decline in consumption highlights the urgency for European winemakers to adapt. Younger consumers are not abandoning beverages entirely but are making choices shaped by lifestyle priorities, health consciousness, and experimentation. In response, winemakers are pursuing several strategies.

Alternative Formats

One of the most visible shifts is the introduction of canned wines. Positioned as convenient, portable, and suitable for casual occasions, canned wines appeal to consumers accustomed to ready-to-drink formats in beer and spirits. Their smaller serving sizes also align with moderation trends.

Innovative Blends

Winemakers are experimenting with new grape combinations and lighter styles, catering to consumers who prefer approachable, easy-drinking options. Low-alcohol and sparkling wines are gaining traction, offering alternatives that align with wellness and social drinking occasions.

Sustainability and Transparency

Younger consumers consistently signal that sustainability matters. European producers are increasingly adopting eco-friendly packaging, organic certifications, and transparent supply chains to meet this demand. These attributes not only reduce environmental impact but also strengthen brand positioning in a competitive marketplace.

Digital and Social Engagement

Gen Z’s buying habits are heavily shaped by digital channels. From TikTok-driven cocktail trends to direct-to-consumer online platforms, winemakers are investing in social media visibility and e-commerce. Digital storytelling is becoming as important as terroir in connecting with new audiences.

Diversification Beyond Wine

Some producers are broadening portfolios to include wine-based cocktails or hybrid beverages. By entering adjacent categories, they tap into growth areas without straying too far from their core expertise. This diversification is a pragmatic response to declining wine volumes.

Outlook

The European wine industry faces undeniable headwinds. Declining per capita consumption across the UK, France, Germany, and even historically resilient Italy underscores the urgency for change. While Spain shows some signs of recovery, the long-term trajectory suggests that traditional patterns of wine drinking are no longer guaranteed.

However, these challenges are also sparking creativity. Winemakers are adopting formats, blends, and marketing strategies that resonate with modern consumers while retaining the cultural heritage that defines European wine. For many, success will depend on striking the right balance between authenticity and adaptability.

As 2025 unfolds, the industry’s ability to engage younger drinkers, embrace sustainability, and diversify offerings will be critical. For European winemakers, the task ahead is clear: evolve with consumer tastes or risk being left behind in an increasingly crowded beverage market.