Fascinating Trends that are Redefining the Wine Industry
A 2018 study of American wine consumer habits shows that price and taste are key influencers of consumption. 79% of the respondents admitted to sipping wine just to get a taste. Another 80% were motivated by price when buying wine. Wine is consumed in numerous ways across a wide variety of markets.
Most traditional shifts in the wine industry arose from people becoming adventurous with their choices. Such trends tend to be tricky to predict. However, nowadays, new factors such as technological advancements and culture shifts have come up. These modern factors have brought about unexpected trends in the wine sector. So, what fascinating trends can you expect to see more of?
Progressive Buying Trends
Technology continues to ease the process of buying wines. There is increasing popularity of virtual labels. You can now buy wine easily without leaving your home and such options will continue to gain popularity. This is evident from the rise in reliance on online shopping and the advent of wine delivery services.
Technology will also impact consumerism by informing their choices. Nowadays, there are a handful of apps that offer guidance on the best wines for different occasions. Such apps will become more popular as more people grow increasingly reliant on expert wine picks.
Increased Consumption of Lesser-Known Varieties
Wine drinkers continue to step more out of their comfort zones and explore lesser-known varietals. This has opened the doors for more diversity and competition in the sector. You can expect to see more consumption of wines from regions that are unpopular as wine-producing hubs.
The wine buyers seem to be seeking newer alternatives almost every time they make a purchase. Already Slovak, Greek, Slovenian, Portuguese, and Austrian wines are gaining a fair share of the limelight. They have become top picks of those seeking fresher wine tastes and alternatives.
More Vegan-friendly Collections
Veganism continues to be a hot trend and wine producers have taken note. As such, they have shifted their focus to offer more vegan-friendly wines to market to this fast-growing consumer niche. They avoid fining agents derived from animal proteins in the final process of bottling their wines.
You can expect more vegan diets and restaurants to come up in the future especially in the western world. As such, if you want to target that niche, consider getting a vegan certificate. It will allow you to serve the environmental-conscious wine drinking population.
Cannabis-wines Market Growth
As more states and nations continue to legalize marijuana, its infusion in numerous products grows. Wine is one of the products that have been infused with cannabis for commercial purposes. Canaccord Genuity LLC, a Canadian investment bank predicted to Business-insider that this is a potential $600 million market.
Legally, you are prohibited to mix cannabis and alcohol meaning that the alcoholic content is removed from the wines. You can nonetheless expect to see more brands competing to make the best tasting cannabis-infused wines. Some of them will put up samples of their wines in the upcoming cannabis drinks expo.
The Old is now New
Currently, there is little emphasis on emerging wine regions within the United States. The focus is rather on the evolution of the already established wine regions. The young vintners look intent on rediscovering old ways of producing wine. This makes them refer to those who have been in the wine production industry for numerous years.
The future may as such see the wine industry plunged into its old ways. Some wine marketers and restaurant owners also appreciate the manner that consumers are looking to rediscover the classics. Even with a huge list of canned, natural and other trendy wines being available, the classics are still significant. They are reminiscent of the historic estates that shaped the modern US wine industry.
Rose wines are growing increasingly popular as all-year wines rather than seasonal beverages. With areas like Italy and Spain also producing rose wines, more people get an opportunity to enjoy them. This has allowed for its supply to meet the ever-increasing supply.
However, do not think that Rose wines from Provence are out of the game. The French region still remains the dominant region in the production of these wines. The other French regions will also continue to offer more affordable and lovable rose wines as time goes.
Hybrids to have More Share of the Limelight
Hybrid wine grapes are bred from the crossing of vinifera with other species of grapes. They allow for seamless wine manufacture under tough conditions. However, they tend to be inferior to the higher-quality and fancier vinifera wines. An aspect that is rapidly changing.
Local wine communities not located in the well-known US wine regions are set to reap hugely from hybrid wines. They can merge the pragmatism of cold-weather grapes with the inception of a new nonchalant. You should look out for newer examples as the year lapses.
One of the biggest rising markets is China. Despite its slowing economy, the country is expected to have an 8% surge in wine imports. The VinExpo/IWSR study predicts that by 2020 China will have more wine imports than France. The study also forecasts that the Chinese wine market will exceed $19.5 billion by 2022.
You can as such expect global wine producers to tweak their production styles to appease the Chinese market. This includes a shift in packaging designs. Red and gold are widely accepted by the Chinese and you will more likely see such labels in the future.
The other emerging and high-potential markets include the Czech Republic, Singapore, and Taiwan. They make up the most attractive fresh markets for wine producers within the next five years.
Natural, Organic, and Biodynamic Varieties
Environmental protection and sustainable wine production continue to be key driving factors of wine sales. As more people become environmentally sensitive, they look to purchase wines produced through environmentally-conservative methods. More consumers are likely to pay more for wines they consider natural or additive-free.
As a producer, you do not have to go all-in yet. However, the earlier you start to produce your wine sustainably the better. One of the ways you can encourage organic wine consumers is by having your labels display the ingredients.
Unique Consumption Habits of the Millennial Generation
You have to know how best to appeal to the largest living generation. The Millennial one. As a majority of them were born between 1986 and 1996, they are of legal drinking age. They also have already joined the workforce and are transitioning into their high-spending years. However, they still have not embraced wine consumption as they were expected to.
While baby boomers purchase the most wine, they may not have numerous years of consumption left in them. This means that as a producer, you have to focus most of your efforts on tapping the millennial market. To do so, you have to offer uniqueness and a personal experience. This can allow you to address the fear and concerns of any millennial.
One thing is certainly assured whether it is during the Uber generation or the era of self-driving cars. The demand for great wine. You have to start with a huge fortune to start a winery and make a small fortune. Or so the adage goes. However, there are numerous growth opportunities you have to take advantage of to reap big in this industry.
About the Author
Molly Moriarty has been an editor and freelance writer since 2010 and has had her work mentioned on MediaBistro, Yahoo! Finance, MSN Money, "Loyola Law Review," "The Portland Mercury" and "Carillon Magazine. She received her M.S. in journalism from Boston University and holds a B.A. in English from the University of Melbourne.
Molly M is a freelance writer who writes about business.