Younger wine drinkers don't want to be lectured on wine, they want to enjoy it, according to researchers.
The domestic wine industry is in trouble. Silicon Valley Bank’s “State of the U.S. Wine Industry Report” predicts that total wine sales will remain negative in 2024, with the bleak data to back the claim that consumer demand for wine continues to wane.
In the face of these struggles, industry professionals, winemakers and analysts look to the generational shift underfoot for answers.
The baby boomers, arguably the shepherds of our modern wine culture, are aging out and making way for Generation X and millennials to shape the country’s changing relationship to wine. For a brief generational recap, baby boomers, aged 60 to 78, came of age post-World War II, experiencing a prosperity in stark contrast with the austerity their parents lived through during the Great Depression. Some boomers exercised this wealth to prop up the American wine industry—visiting wine country, joining wine clubs, seeking out wine education and generally valuing wine as a large portion of their alcohol consumption.
Gen X, aged 43 to 59, were born between the mid-1960s and ’80s and came of age during times of economic uncertainty and political turmoil. This shaky upbringing fostered a self-reliant, pragmatic and skeptical mindset which has made this generation and its habits hard to pin down.
Millennials, aged 27 to 42, came of age during the rise of the internet and globalization, valuing work-life balance and adopting digital tools of communication and commerce. As millennials enter maturity, the wine industry anxiously speculates whether they will value wine with the gusto of their forebears. Following millennials comes Gen Z, aged 12 to 26, a young generation whose shifting attitude toward alcohol in general has been the cause of much handwringing. According to SVB’s report, they are a healthy, sober-curious bunch, not always invested in spending on alcohol, but their relative youth means it will take time to see a clearer picture of their true habits.
The truth remains that overall wine consumption in the U.S. is dwindling, with supply continually outpacing demand. Despite this fact, recent reports indicate that Gen X and millennials are consuming ample wine—they’re just doing so differently than previous generations. By listening to younger consumers and understanding their fresh perspectives, wine businesses can reimagine their offerings and revitalize their marketing strategies to form genuine connections with younger audiences.
WineGlass Marketing survey seeks answers
Among many insightful studies tracing these emerging trends is a recent survey conducted by Napa-based, full-service agency WineGlass Marketing. WineGlass sought answers to explain the drop in demand for their clients’ products and decided to dig deeper into generational trends to find them.
As Susan DeMatei, founder of WineGlass Marketing, explains, “The press has been overwhelming, saying the market is down, and saying it’s all the winery’s fault because they don’t talk to millennials—OK, so what do [millennials] want?”
The agency tapped Quest Mindshare out of Ontario to conduct an extensive study, gathering results from over 1,600 domestic wine drinkers focused on the similarities and differences between how Gen X and millennials consume wine.
When asked why they decided to home in on these two generations, DeMatei explains, “Gen X is underreported but they’re an incredibly lucrative potential audience.” With the so-called Great Wealth Transfer upon us, this fickle generation will soon be inheriting upward of $30 trillion, according to estimates by the consulting firm Cerulli Associates. And yet their wine-consuming habits are difficult to understand, and thus to market to. DeMatei wanted to take a stab at better understanding them and their habits surrounding wine so she could advise wineries on how to capture their attention. The study purposefully left out Gen Z, opting to focus on what they consider to be the two closer targets, while the so-called Zoomers continue to come of age.
The most surprising aspect of the survey, according to DeMatei, is: “How clear [the results] are.”
She says the opinions illuminated by the study paint a distinct picture: Gen X and millennials understand and enjoy wine, they don’t seek further education; and, in fact, they find it alienating. These younger generations are largely confident consumers who crave variety, confidently purchase online and don’t need their hands held along the way.
DeMatei expresses hope that their findings will help wineries concentrate efforts and improve strategic planning. She acknowledges that the wine industry needs to update its direct sales model to better engage with these generations.
These survey results, along with anecdotal evidence from three local wineries, suggest that with new approaches—such as improvements to online offerings and diversification of tasting room experiences—the industry can shepherd in a new era of success for domestic wine businesses.
OK, boomer! Millennials and Gen X don’t want wine-splaining
The findings on millennial wine-drinking habits are both revealing and optimistic. Millennials frequently enjoy wine, with many imbibing multiple times a week. They are also willing to spend more on wine, often exceeding the benchmark $20 price point, even happily spending over $40 on a special-occasion bottle.
On top of that, they’re not drinking less wine. The majority of respondents are drinking the same as a year ago, and 35% of millennials reported drinking more than last year.
For millennials, wine is, first and foremost, a casual and social drink—as opposed to a precious commodity. They value variety and opt for wine as a healthier alcoholic option, reaching for a glass in lieu of a higher-ABV (alcohol by volume) cocktail. They focus on flavor and craftsmanship, but prefer casual enjoyment over traditional wine-tasting formats. In other words, they don’t care about soil types, terroir and vinification as much as boomers. For them, wine information is accessible at the touch of a button: they’ll go down that rabbit hole if they so choose—they don’t need a docent guiding the way.
As DeMatei explains, “There’s a difference between learning and discovery.” Millennials are looking to discover new wines, but they don’t want to be talked at or lectured to in order to do so. This is a generation that has grown up with ample information at their fingertips; they are a lot less eager for education than their parents.
According to the survey, millennials also show a strong interest in organic and sustainable wine options, aligning with their overall preference for healthier choices and environmentally conscious products.
Sonoma-based winemaker—and millennial—Jack Sporer confirms the findings.
“Millennial and Gen Z wine customers are attracted to [our wines] and the natural wine movement as a whole because it’s a surefire way to find wines of authenticity and sustainability,” says Sporer, of Magnolia Wine Services in Sonoma. “These wines, and the spaces where they can be found, are laid-back, accessible and, above all, F-U-N.”
How does Gen X stack up? This generation similarly enjoys wine and values both convenience and quality, the survey shows. According to the WineGlass Marketing Report, Gen X tends to favor wine as its alcoholic beverage of choice, drinking it two to three times a week on average. They are also a bit more price-sensitive than millennials, with a majority preferring wines under $25. Gen X consumers are less likely to be wine club members, with 80% not belonging to any clubs. Less inclined to shop online than the younger groups, Gen X prefers to purchase wine from retail outlets, particularly specialty shops and wine stores. Gen X consumers appreciate the relaxed atmosphere of wineries but, like millennials, are less interested in educational aspects of wine tasting. Above all, they value authenticity and remain somewhat skeptical of health and sustainability claims in wine marketing.
Be online, foster community
Online shopping is the way of the world for millennials. Instead of solely relying on brick-and-mortar retail shops and tasting rooms to stock cellars, they buy wine through myriad channels: delivery apps, online shops, winery websites and social media. It follows that this generation wants support and ease when purchasing wines digitally. They value well-written, easily accessible tasting notes and well-functioning websites. Moreover, they appreciate personalized recommendations and the option to customize wine selections, making the online shopping experience more engaging and tailored to individual tastes.
One way she fosters an online community is by collaborating with other small, artisan brands. “We love partnering with other makers and artists—hosting giveaways is a fun way to cross-pollinate customer bases. When done well, we’ve had customers thank us for introducing them to other great small businesses,” Stoumen says.
Stoumen also recognizes the importance of a well-designed website: “Creating a beautiful website with a smooth checkout process was an investment we prioritized as soon as we had the funds. But none of that matters without relationships—and those take time to build, whether online or in person.”
Stoumen believes to market wine successfully, engagement must be treated as a two-way street. She notes that, all too often, “the questions are about how the industry can engage younger drinkers, but not about how people in the industry should engage themselves in younger people’s worlds.”
The answer? “Get curious, ask younger people questions about what they care about, hang out where younger people hang out—in person or online—hire people of all ages including some younger people and ask them their opinions.” Stoumen’s approach has paid off in spades, securing her a loyal following of Gen X and millennial customers.
“No generation is a monolith,” says Stoumen. “If we aren’t treating people as individuals, how can we truly make a connection?”
Online or in-person, it’s important to listen to and engage with younger audiences to learn what they want and be able to sell it to them.
Not your mother’s tasting room
If millennials and Gen X agree on one thing, it’s the old credo: “variety is the spice of life.” Both groups are drawn to unique experiences and diverse options when it comes to wine. For wineries with under-visited tasting rooms, DeMatei has ideas on how to attract younger crowds. She points to museums as an example of adaptive offerings. “Museums now provide interactive online experiences, multimedia exhibits and activities for children. They’ve made themselves accessible to new generations.”
Wineries with tasting rooms are similarly tasked with getting creative and evolving to fit changing needs. DeMatei suggests out-of-the-box experiences she’s seen succeed first-hand around wine country: escape rooms, ATV rides, picnics in the vineyard, ecology tours and farming or gardening workshops. She emphasizes that there is still an agrarian drive pushing people out of cities to explore the beauty of the countryside, but the focus needs to be taken off the technical aspects of winemaking and broadened to entertain a better-informed audience.
Cat Hunter, associate marketing manager for the winery, confirms that patrons—largely Gen X and millennials—are drawn to this laid-back yet thoughtful approach. “We want the space to feel accessible, comfortable and inviting—to encourage guests to settle in, explore the wine and make an occasion of it. Our regulars find this casual hospitality really appealing.” Hunter affirms that the pomp and circumstance of yesteryear’s tasting rooms is the wrong approach when welcoming younger groups. “There’s an element of ease and whimsy we like to keep alive in everything we do, and we’ve found this attitude has really boosted engagement across all age groups.”
While the WineGlass Marketing report offers valuable insight into wine-consumption trends among Gen X and millennials, it’s crucial to note that the survey focused solely on current wine drinkers. This approach allowed for in-depth analysis of existing consumer behaviors and preferences but leaves the broader challenge of converting non-drinkers to wine consumers unaddressed. DeMatei’s solution? An umbrella campaign backed by the top-grossing domestic wineries aimed at selling Gen X and millennials on wine.
“We need the Orson Welles, ‘We will sell no wine before its time’ campaign of the 21st century,” she says, referring to the late 1970s Paul Masson wine advertisements featuring the acclaimed film director.
In other words, the concept of regular wine drinking didn’t sell itself in this country—it could be time again for the industry to unite and promote a new narrative of domestic wine to the younger target audience.
As the wine industry grapples with shifting consumer preferences, the key to its success may lie in understanding and adapting to the unique tastes and values of Gen X and millennials. These generations are rewriting the rules of wine consumption—favoring casual enjoyment, sustainability and diverse experiences over traditional wine education and formalities.
As the survey suggests, to thrive in this new landscape, wineries would be wise to embrace innovation and community, both online and in-person, creating engaging online spaces and reimagining tasting room experiences to appeal to younger palates and perspectives.
As in years past, the future of the wine industry depends on its ability to evolve and resonate with influential, new generations. By fostering authentic connections, prioritizing the health of the planet, and offering unique, memorable experiences, wineries can tap into the enthusiasm and spending power of Gen X and millennials. If the industry adapts to changing dynamics, it may well witness a renaissance in wine appreciation, one that blends the rich traditions of winemaking with the vibrant, diverse and tech-savvy spirit of younger generations.
The challenge now is for the industry to come together, craft a compelling narrative and invite these new wine lovers to shape the next chapter in the story of American wine.
In the Field: The creative tasting rooms of the North Bay
Abbot’s Passage – Mercantile & Shuffleboard, Glen Ellen
Benziger Family Winery – Biodynamic farm tours, Glen Ellen
Matanzas Creek Winery – Lavender fields and bocce, Santa Rosa
Chenoweth Wines – ATV tours, Sebastopol
The Donum Estate – Wine tasting among impressive sculpture collection, Sonoma Valley
Sterling Vineyards – Aerial tram, Calistoga
Ryme Cellars – Laidback wine picnics al fresco, Forestville
The Study Wine Bar – Urban winery serving natural wine from the Richmond Wine Collective, Richmond
Dos’ Bar – Cooperative tasting room featuring local natural wine, Sonoma
