As wine consumption declines across Europe, experts are urging producers to pivot towards the growing market for low and non-alcoholic wines, which could provide a significant economic boost.
Wine has long been integral to Europe’s cultural history, yet in recent years, especially among younger generations, drinking less wine has become a popular trend. In response to this, industry experts are advising European producers to tap into the rising demand for low and non-alcoholic wines as a potential solution to reverse the negative economic impact.
The European Union remains the world’s largest wine consumer, accounting for approximately half of global wine consumption with 107 million hectolitres consumed in 2023. However, consumption has been steadily declining for over a decade. Between 2010 and 2020, the EU’s wine consumption dropped by nearly 25%, and this downward trend is expected to persist, albeit at a slower pace.
Experts attribute this decline to increasing health concerns and changing drinking habits, particularly as more consumers seek healthier alternatives. This has spurred the growing interest in low and non-alcoholic wines.
In response, the European Commission formed a reflection group last year to assess the challenges facing the wine industry. According to Euronews reporter Gerardo Fortuna, the group aims to address issues such as climate change, extreme weather events, and shifts in consumer preferences. Additionally, the group noted a decline in wine exports, exacerbated by a tough international trade environment.
One key recommendation from the group was for the wine industry to explore the emerging market for low and non-alcoholic wines, a segment that has seen a rise in popularity. The global market for non-alcoholic wine is expected to grow from nearly €8 billion today to €14 billion by 2031, with an annual growth rate of over 10%. Major markets for this product include the United States, Canada, Australia, and India.
This shift towards non-alcoholic wine represents a significant change for European producers, many of whom have traditionally focused on alcoholic wine. Despite this, there is growing optimism in the industry, with many producers beginning to embrace this new trend.
Eric Sargiacomo, vice chairman of the Agriculture Committee in the European Parliament, acknowledges the challenge of balancing traditional wine production with emerging opportunities in the non-alcoholic market. However, he believes the European wine industry is well-positioned to succeed in this new arena.
While embracing change may be difficult for an industry rooted in tradition, non-alcoholic wines offer a flavorful and healthy alternative for consumers looking for a drink without the effects of alcohol. If European wine producers fully commit to this shift, they could unlock a valuable and profitable market in the coming years.
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