Causes of the Current Downturn in Wine Consumption
There has been considerable hand-wringing in the wine industry over the past two years as experts debate the causes of the recent downturn in wine consumption. The decline feels especially abrupt given how sharply sales spiked during the COVID-19 pandemic.
Since then, the trend has been steadily downward.
As with most large-scale, market-driven issues that span multiple consumer segments and demographics, there is no single, magic explanation.
However, five factors are most often cited in wine’s decline: generational shifts and changing preferences; increasing health awareness; economic pressures and rising costs; reduced accessibility and evolving social habits; and challenges related to production and climate.
These factors are identified by recent reports from the International Vine and Wine Organization, Silicon Valley Bank’s (SVB) recent 2026 report on the State of the U.S. Wine Industry, and Gallup.
Some long-time wine industry professionals take a more optimistic view, often indicating, “The wine market goes through cycles from time to time.”
However, the recent SVB report suggests that while some numbers may rebound, the recovery will not be uniform. As the report notes, “a clear divide has emerged between those evolving with the market and those struggling to keep up.”
Health concerns have played a significant role in the shift, prompting many producers to introduce no- and low-alcohol options. Organic and natural wines have also become a growing market segment as consumers seek products perceived as healthier or more sustainable.
Demographic drinking habits are frequently cited as another major driver of the downturn. Baby Boomers (ages 62 to 80) are aging out of regular consumption, while Gen Z (ages 14 to 29) shows less interest in wine overall.
I understand this narrative—and the data supports it—but additional trends are also contributing to declining wine numbers. Embedded within the five factors mentioned earlier is competition. Compared with even a few years ago, consumers of all ages now have far more beverage choices.
Beer and spirits have long competed with wine, but today the landscape includes an expanding array of inventive products and flavor profiles aimed at capturing younger drinkers. Visit any liquor store and you’ll see this firsthand: alongside traditional beer, wine, and spirits, the shelves now feature growing sections of premixed cocktails, flavored beers, and non-alcoholic options across all categories.
These new offerings are designed to capitalize on shifting norms, attitudes, and tastes.
In the coming weeks, I’ll share additional details—and my perspective—on each of the five contributing factors, beginning with generational shifts and changing preferences.