How to Capture the Next Generation of Wine Drinkers
The wine category is expected to dramatically transform in 2025, fueled by rapidly evolving shopper preferences and purchase patterns. This presents both challenges and unprecedented growth opportunities for Table Wine marketers, particularly domestic brands. To navigate this dynamic landscape, shopper intelligence leader Catalina offers access to the critical data-driven insights you need to outperform your competitors and cultivate enduring brand loyalty across diverse target audiences.
Meeting the Moment
The wine industry faces a confluence of forces in 2025. The rise of the “intermittent sobriety” movements, the emergence of low-alcohol and cannabis-based beverage alternatives, and potential tariff-related price increases require wine marketers to develop new strategies that meet the moment.
As Rob McMillan‡, an industry analyst, aptly concludes, "Hope is not a strategy. Instead, wineries must embrace innovation, collaborate, and proactively shape the narrative around wine."
Catalina’s Shopper Intelligence Platform reveals that the Table Wine category experienced a 5% decline in 2024, largely attributable to the decline of the Boomer population. But Millennials and Gen Z are not naturally filling the gap.
"Wine is what young consumers want, they just don’t know it yet," said McMillan, who believes that the industry is experiencing a demand correction, not an existential crisis.
Category Insights & Growth Strategies
Success in today’s Table Wine category hinges on understanding the US consumer’s shifting attitudes toward alcohol. Catalina's data analytics team has taken a deep dive into their purchase patterns, brand loyalties, and spending habits to develop these five growth strategies that are designed to help your brands resonate with the next generation of wine enthusiasts:
- Focus on New Buyer Acquisition. Prioritize attracting new buyers, especially younger shoppers, who are entering the category at a rate of 3%. They are critical for long-term growth and sustainability. But don’t focus solely on new buyer acquisition. Catalina data shows a significant 22% of wine buyers drank more of it in 2024. Industry analysis reveals this cohort is likely led by the 44% of Millennials who are highly involved in the category and spend more when they do.º
- White Wine Purchases Will Dominate. New category buyers are most likely to purchase White Wine in 2025. Last year, they spent an average of $111.85, according to data insights from Catalina. The top brands include domestic entries such as Josh Cellars (9%), Kendall Jackson (5%) and Chateau Ste Michelle (4%) as well as import Clos du Bois (4%).
- Purchases of Other Fruit Wines Expected to Surge. This dynamic segment, which includes Sangria, Wine-based Ready-to-Drink, and Flavored Varieties, is small but experiencing explosive growth, driven by the innovation and experimentation Gen Z consumers crave. It accounted for the highest share of new category buyers.
- The Rise of Premiumization. While Domestic White Wine is the most popular varietal among new buyers, imported brands remained resilient across segments. Two competing forces are expected to converge in 2025: Industry reports¦ say there’s a growing demand for higher-quality premium wines, even among younger consumers. However, the potential of increased tariffs on foreign goods is likely to translate to an even higher price point, which may dampen sales.
- Red's Decline and Rose's Diminishing Reign. While still popular, the initial fervor surrounding Rose All Day has cooled. Domestic Rose Wine consumption declined 14% in 2024, and Red Wine volume fell 6% across imported and domestic segments. In 2025, wineries should differentiate themselves by exploring new flavor profiles and engaging in storytelling that will maintain consumer interest.
Uncork Growth: Partner with Catalina
The Table Wine industry is at an inflection point. By leveraging Catalina’s data-driven insights and omnichannel shopper engagement, CPG winemakers can navigate these challenges and capitalize on emerging opportunities. Understanding consumer preferences, identifying new buyer segments, and developing innovative marketing strategies will be critical to your success in 2025 and beyond.
Contact Catalina today to learn more about how our shopper intelligence solutions can help you capture the next generation of wine drinkers - results@catalina.com.
‡State of the US Wine Industry Report 2025
°IWSR, 2024
¦Wine Industry Advisor, July 2024