The annual US Wine Landscapes report for 2021 from Wine Intelligence reveals that Millennials are saving and destroying the US wine industry. The global pandemic has meant that this demographic is in the pilot seat of the world’s largest and most valuable wine market.
The big news is they are drinking differently, choosing alternative and interesting wines but not consuming as much as previous generations.
In last year’s report, Wine Intelligence noted that “if Millennials account for the future wine drinking population, the US wine market will experience some evolutionary pain. The newer wine drinkers are highly involved, open-minded, seeking quality and willing to pay for it, while drinking less overall.”
This year’s report confirms this to be the case in the post-Covid era as Boomers move away from wine and Millennials look to purchase new and interesting products on Apps and online.
The report states the pandemic has created different occasions and needs and initial estimates show that wine volumes have reversed their decline in 2019. However, this is likely to be temporary, and a more austere era for spending predicted post-pandemic.
Successful wine brands in the 2020s will be those catering to the needs of the Millennial. Wine Intelligence says “At its best, wine can offer intellectual depth, a sense of place, education and fun. These needs align very closely with a Millennial generation scarred both by the financial crisis of 12 years ago, and the chaos of the pandemic. It will translate into a wine market that offers more interest, and probably higher prices, but ultimately less liquid.”
