The wine industry in America has streaks of worry on its forehead. The main reason for this is the low consumption of wine among Millennials. Millennials i.e. the youth of 23 to 38 years, on whom the focus of the market remains. This concern has been expressed in the recently released annual report of the US wine industry.
Report author Rob McMillan believes the wine industry’s efforts to attract new customers are insufficient. Boomers (ages 57-75) are on their way to retirement. So the reduction in their spending is justified, but even Millennials have not given any indication that they are ready for this path.
Rob, a longtime analyst on the US wine market, cautions that the next decade is going to be a challenging one for the industry. He has feared that the sale of wine may decrease by 20% during this period. For the report, Rob analyzed the financial statements and sales for 2021 of more than 600 companies.
Young people lost interest in wine, they were burdened with debt
Accordingly, the purchasing power of Millennials is also lower than that of Boomers. Young people’s interest in wine has also decreased. They are burdened with student loans. Job opportunities are few, they hardly even think of buying a house. Recent surveys have also been included in the report.
In this, people were asked what they would like to share in the party in wine, beer, spirits (alcoholic drinks made from grains, fruits, vegetables), flavored malt beverages? 49% of people 65+ said they would like to bring wine, while only 21% of Millennials agreed. Only 30% of the rest of the age group were in favor. Leaning towards beer and spirits.
The difference between the prices of wines and better cocktails has narrowed. That’s why interest has waned. According to Rob, good wine, beer or spirits is more expensive than it was in the 90s.
Social media also has an impact. The youth are aware of the issues of social justice, climate change and health. So the social value of the brand is also important to them. The producers also have to show commitment on these issues. Natural products and methods have to be promoted. Then, perhaps the youth will be able to be attracted.
Here… Sales in India grew by 12% in the last six months of 2021
The sale of liquor and other alcoholic beverages in the country increased by 12% in the last six months of last year. Many companies sold these products in higher quantities in the last quarter than pre-Kovid.
Manufacturer companies say that consumption increased in homes during Kovid. After this, the relaxation of restrictions increased the footfall, which also increased sales. A trend has also been seen that people prefer to opt for expensive brands.