Wine Market Trends: Gen Z’s Return Hints at a Rebound
Wine Market Trends: Gen Z’s Comeback Could Spark Rebound
After years of concern about the direction of wine market trends, new data is flipping the narrative.
According to an extensive new survey by IWSR, Gen Z is returning to alcohol, and in meaningful numbers.
Over 73% of legal-age Gen Z consumers said they had consumed alcohol in the past six months, up from 66% two years ago. That’s the largest increase across any generation. And it’s a strong signal that the recent downturn in the drinks market may not be structural, but cyclical.
As younger consumers re-enter the category, and premiumisation continues to hold firm, many in the industry are asking: Are we approaching the bottom of the fine wine market?
Gen Z and Shifting Wine Market Trends
For years, industry narratives painted Gen Z as the sober generation. But IWSR’s findings suggest economic constraints, not cultural shifts, were the real driver behind reduced alcohol consumption.
With the cost-of-living crisis easing and more Gen Z drinkers entering higher-earning phases of their careers, they’re coming back to alcohol, and they’re trading up. Nearly 30% of Gen Z respondents said they were drinking more than they were two years ago. Over 40% reported their friends and peers were drinking more too.
This is no blip. It’s a reset.
Premiumisation Still Leading the Way
While global alcohol volumes have dropped, with spirits down 2% in 2024, revenues have held steady or grown. That’s because consumers are continuing to prioritise quality over quantity.
This “less but better” mindset plays directly into the hands of premium wine and spirits. Fine wine isn’t just a luxury purchase, it’s a long-term asset. As global investors rebalance away from lower-end products, the spotlight is staying firmly on high-end, age-worthy labels with proven secondary market performance.
The current climate is similar to any asset class correction: values adjust, weaker hands exit, and smart capital steps in.
Are Wine Market Trends Signalling a Turning Point?
The downturn in global alcohol consumption has raised questions: is this a permanent structural decline or a short-term cycle?
If Gen Z is indeed returning to alcohol and focusing on premium products, and if premiumisation continues to drive revenue despite volume drops, then current wine market trends could indicate we’re approaching the bottom of the market, not a breakdown.
For fine wine collectors and investors, this moment matters. Smart investors know: you don’t buy the hype, you buy the dip.
What This Means for Collectors
- Gen Z is re-engaging with alcohol, and spending more on quality.
Boomers may be slowing, but Millennials and Gen X are holding strong.
Premium wines and spirits remain resilient as assets, even in low-volume markets.
Valuations have cooled, creating opportunities for entry or expansion.
If you’re considering expanding your wine portfolio, or getting started, now could be a strategic entry point. With demand showing signs of recovery and prices adjusting after recent highs, the conditions are aligning for a rebound.
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