Hard data from around the world offers incontrovertible proof that people are consuming less alcohol, and this is having knock-on effects on the wine industry. Although similar trends were also observed among Millennials and Generations Y and X, for Centennials -Generation Z- it seems more deeply rooted.
Although explanations vary, the majority of industry analysts and experts agree that those born between 1996 and 2010 belong to a separate generation that shares certain attitudes. According to a study carried out by the IWSR, in some key markets, a significant proportion of Gen Z are avoiding the consumption of alcohol entirely.
The study shows that Japan is seeing the greatest proportion of abstemious Gen Z members with 63% responding that they haven’t drunk alcohol in the past six months, followed by the USA with 53% and Canada at 44%.
But teetotalism isn’t the only challenge facing the wine industry when it comes to winning over Generation Z consumers. “Wine is experiencing more competition than I’ve seen in 50 years of covering the field:craft beers, cocktails, cannabis, health problems and abstinence. It’s not surprising that people are drinking less in general and less wine in particular,” says Jancis Robinson, Master of Wine (MW).
The British journalist and writer believes that health problems are the main driver of Gen Z when it comes to reducing alcohol consumption, a response to the kinds of issues that led previous generations, such as baby boomers, to take up exercise.
“I’m not sure that the wine industry is doing much,” says Robinson regarding wineries’ attitude toward young people. In any case, she suggests that telling enticing stories might be a good way of introducing people to wine.
In addition to agreeing about the trend toward healthier lifestyles among young people, the sommelier Camila Torta notes that each successive generation seems inclined to spend less on alcoholic drinks. “It’s not so important what you’re drinking as the effect it has, along with the trend to opt for sweeter drinks. In terms of context, I think it’s still about the ‘pre-game’ before going out, or hanging out in other people’s houses, or the park, etc. where you don’t use glasses, and so they prefer beverages that can be drunk straight from durable containers, or something you can add ice to. ‘Cold’ drinks are very important when it comes to that kind of consumption.”
Torta also thinks that communication is one of the keys to reaching Generation Z. “I think that if we want to keep building, it’s fundamental for us to teach them about alcoholic drinks, to communicate clearly and plainly about how and when it’s best to drink.”
What Argentine wine is doing to reach Generation Z
Paula González, the oenologist at Antigal Winery & Estates, believes that Generation Z is having an interesting and challenging effect on alcohol consumption, especially wine. “We should always be ready to listen to the demands of consumers, keep an eye out for trends and to find ways to adapt as a winery to these challenges. It’s important not to lose focus or your brand identity but instead to seek out and develop products that supply the things they want.”
In order to win over this difficult market segment, González believes that the key is to be flexible to consumer demand and find alternative products that adapt to these new trends. “Currently, our focus is on sustainability from the vineyard to packaging, seeking out different alternatives that are of greater interest to the new generations.”
Andrés Vignoni, the head of oenology at Raquis, says that the industry’s big challenge is to differentiate wine from the other alcoholic drinks in the eyes of Generation Z. “Whether because of its long history, its properties, how it accompanies our meals, and its many other benefits, wine isn’t subject to the negative connotations associated with other alcoholic drinks. We are always trying to produce interpretations that lower the alcohol content without affecting its character. Then we can show that when consumed moderately, it does no harm. Quite the opposite in fact,” said Vignoni.
Meanwhile, Juliana Del Águila Eurnekian, President of Bodega del Fin del Mundo, notes that less consumption isn’t just a trend among Centennials. “There’s always a fear that young people aren’t drinking wine and this generation is subject to that. But apart from healthier lifestyle trends and greater awareness about what one is ingesting, there are economic reasons that people get into the world of wine at a later age.”
In that regard, the winery owner admitted that the industry “must be more intelligent and start to attract consumers with products more suitable to a healthier lifestyle. We need to offer lighter products that aren’t so concentrated. There, our winery and Patagonia in general have a competitive advantage because those qualities come naturally.”
Agreeing with Vignoni, she also believes that telling the story of wine and its qualities is crucial to differentiating it from alcohol in general. “We need to talk about the rich culture of wine; it’s not just an alcoholic drink, it’s heritage and tradition, there are so many different options for every occasion … it’s such a vast world that if we manage to project these attributes in an attractive way, we’ll have a much better chance of attracting new consumers, and keeping the ones we already have.”
A passing trend or a new reality for wine?
One of the great unknowns is whether this trend among young people reflects a new approach to wine that will define its future. Paula González doesn’t believe that Generation Z’s attitude to wine isn a fad. “There are clear indicators that the phenomenon reflects a deeper and lasting change of attitude toward alcohol consumption, especially among younger people. Newer generations are focusing on physical and mental wellbeing and looking for healthier alternatives with moderate, balanced consumption,” says the oenologist.
Meanwhile, Andrés Vignoni is more cautious. He says it’s extremely difficult to know. “Fashions are always changing and trends are just trends. Wine is never going to disappear but neither can we expect people to go back to drinking 90 liters a year. When that was happening there wasn’t the competition there is today. Winemakers need to be confident, believe in our product and show that, as Pasteur said, ‘Wine is the healthiest food of all.’”
