The wine industry has long thrived on innovation to enhance flavour, workplace efficiency and sustainability. However, it is not immune to the changing taste preferences of younger generations. Endeavour Group’s director of merchandise and buying, Tim Carroll, joined Food and Beverage Industry News to share his insights.
Released in August, Endeavour Group’s ‘State of Grapes’ report uncovers trends and insights into what the future of wine may look like. The report shows that factors such as affluence, generational divides, climate, and local wine production influence the preferences of each market.
This initiative follows the launch of the company’s Trade Supplier Charter, aimed at fostering transparent partnerships through improved data access and actionable insights. The ‘State of Grapes’ report is one way of not only providing data but also presenting it in a format that can be easily understood and applied across the industry. Coinciding with Wine Australia’s We Make A Wine For That campaign in August, Carroll said the organisation provided the perfect platform for the launch.
“The report aims to provide all our suppliers and industry bodies with the granular information they need to make more informed decisions, innovate with greater confidence, and ultimately, grow their businesses alongside ours,” said Carroll.
Key national findings from the report include:
- The wine category’s market share has stabilised.
- There is a national pivot to lighter wine styles.
- The spritz category (sparkling-wine-based cocktails) has become a feature on drinks menus.
- Cost of living continues to affect purchasing decisions.
- Younger drinkers are prioritising personal taste over conventional food pairings.
- High-income areas consistently spend more on wine than other areas.
Australia mirrors the global trend of declining alcohol consumption since 2018. However, the report shows that from 2023 to 2024, total wine gained 0.1 per cent in share versus total liquor, marking a stabilisation of the category. This is the first time in more than a decade that wine has grown in share across Endeavour Group.
The report also shows that across all states there is a consistent trend towards lighter-bodied and more refreshing wine styles. Varieties such as Pinot Noir, Rosé and Prosecco have grown their market share, while traditional fuller-bodied red wine varieties like Shiraz have declined in sales since 2018, losing 1.3 per cent share across Dan Murphy’s and BWS channels.
As younger consumers become more conscious of their alcohol intake and seek lower alcohol options, the shift to lighter wine styles reflects a lifestyle choice linked to moderation and health. Carroll noted this is part of a broader “mindful drinking” movement. Social media has also elevated visually appealing trends, making spritz-style drinks and rosé increasingly popular.
Spritz category spotlight
The spritz category has emerged as a feature on drinks menus. Innovation in this area has supported the wine industry’s stabilisation, particularly among Millennial and Gen Z consumers who are drawn to such options. Purchases of spritz within Endeavour Group’s channels have grown strongly, especially during the Christmas and New Year period.
“While Millennials and Gen Z are not consuming wine at the same rate as previous generations and are less interested in traditional wine culture, they are also more open to new products, alternative packaging, and authentic brand stories,” said Carroll.
He added that younger generations are more likely to prioritise taste over rules, signalling opportunities for the industry to innovate through products such as canned wines, low-and-no alcohol options, and contemporary branding.
Cost-of-living crisis
Carroll said that the cost-of-living crisis is making consumers more value-conscious. Shoppers are seeking promotional deals and discounts more actively than before. At the same time, consumers are selecting more premium products when they choose to drink, which indirectly moderates overall consumption.
The report shows that older wine drinkers are less swayed by financial pressures, while younger Australians increasingly prioritise value, with promotions becoming a key factor in decision-making. High-income areas consistently spend more on wine than other regions, particularly in metropolitan centres in Victoria, New South Wales and Western Australia. This demonstrates a clear correlation between disposable income and wine expenditure across the country.
What’s in store for the industry?
Carroll emphasised that generational shifts are creating new challenges for winemakers. As younger drinkers gravitate towards different styles, a mismatch between production and consumption has created a surplus. Wineries are responding by diversifying portfolios, which in turn drives new product innovation and supports industry-wide collaboration to address shared challenges.
Looking ahead, Carroll expects continued focus on diversification, premiumisation and sustainability. With the industry using data from the report to explore new product development, traditional winemaking can remain resilient by embracing change while maintaining its heritage.
“We were pleased to launch this report in partnership with Wine Australia, to provide market insights, research and development, and ideas of promotional activities,” said Carroll. “We hope the State of Grapes report is useful to the industry as a guide to consumer behaviour across the country in 2025.”