Why Wine Sales Are at a 20-Year Low

According to Impact Databank, U.S. wine sales fell below 300 million cases last year for the first time in two decades. Worldwide, wine consumption also dropped another 2.7%, according to the International Organisation of Vine and Wine.

Patrick Steptoe, an alcohol industry expert and CEO and founder of Luther Dryers, says much of the decline can be attributed to changing preferences among younger consumers. In general, younger drinkers are choosing to consume less alcohol, including wine, as they have more alternatives than previous generations.

“They have many more alternatives than we did as kids,” Steptoe explains.

Those alternatives are becoming increasingly popular. Steptoe points to THC beverages, hard seltzers and canned cocktails as some of the options younger consumers are reaching for instead of traditional beer and wine.

“Convenience is key,” Steptoe says. “It’s just a wave of the future that you see. The demand is increasing, and this is why the decrease in the demand for traditional things like wine and even some spirits.”

But it’s not just about what younger consumers are drinking — it’s also about how they’re drinking. Steptoe says data shows younger generations are less likely to socialize around alcohol in the same way previous generations did.

Between an ever-growing selection of alternatives and a shift away from alcohol-centered socializing, wine is facing a new kind of competition.

For an industry built around tradition, the message may be clear: wine isn’t just competing with other drinks anymore. It’s competing with an entirely different drinking culture.

Listen to the full interview about the decline of wine sales, how it’s affecting bars and restaurants and more here: