Radius Innovation Trend Radar: How wine is adapting to Gen Z preferences

IWSR data reveals that many wine markets are becoming more reliant on drinkers aged 55 and above. While younger LDA consumers are still being recruited into the wine category, the frequency of consumption is on a downward trend in many markets. For example, in Australia, the number of LDA consumers up to the age of 24 who reported consuming wine at least monthly halved between 2010 and 2023.

This poses a major challenge for wine producers looking to capture the attention of the Gen Z market. Born between 1997 and 2012, consumers in this generation are aged from 12 to 27 years old. Health-conscious, and sober-curious – having come of age during the rise of non-alcoholic spirits – this group is exposed to a greater array of categories than older generations.

With Gen Z less familiar with wine-specific regions and varietals – and increasingly swayed by moderation concerns – they are also sensitive to price increases. Data suggests they are moving away from occasions usually associated with wine consumption, forcing the wine category to adopt a new approach to reach them, and prove its relevance to their lifestyle.

Wine is working hard to catch up with a generation quite unlike any before it and the race is on to prove that the category is relevant to Gen Z’s lifestyles, as well as their values. Brands are having to innovate to appeal to these young LDA consumers in a way that feels authentic and rooted in their culture.

Rejecting Tradition: Established wine categories and the terminology associated with them mean less to Gen Z drinkers than to the generations before them. Gen Z are showing interest in non-traditional regions, sustainable practices, and experimental styles like orange wine, co-ferments, and chilled reds. They are also embracing low- and zero-ABV options for a more mindful approach.

Evolving Formats: With shifting drinking habits, Gen Z prefer versatile packaging like RTDs, Bag-in-Box, and resealable aluminium bottles, making wine more accessible and sustainable for different occasions.

Genuine Connections: Authenticity matters — brands leveraging social media and cultural trends, like Josh Cellars’ viral meme moment and Whiny Baby’s mood-based branding, successfully engage younger LDA consumers.

Gen Z Branding & Collaborations: Collaborations with artists, celebrities, and designers help brands stay relevant. Limited-edition art packs, bold colours, and street-culture-inspired designs make wine visually appealing and shareable on social media.

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