The global wine industry is facing an “existential crisis,” warns Frugalpac, the makers of the world’s first paper wine bottle, as shifting consumer preferences and declining consumption rates threaten traditional winemaking.
A recent BBC Radio 4 PM programme highlighted a 12% decline in global wine consumption since its peak in 2007. Presenter Evan Davis noted that vineyard values are dropping worldwide, with Knight Frank data showing a 15% decrease in California’s Napa Valley, a 10% drop in France’s Cote d’Or, and a dramatic one-third decline in New Zealand over the past year. Experts attribute this downturn partly to younger generations and changing consumption trends in China.
Wine critic Jane Rakison explained that Europe has seen declining wine consumption for decades, though it was previously offset by growth in other markets. However, as those markets plateau, the industry is beginning to feel the impact. In France, younger consumers now drink half as much wine per capita as older generations.
A Shift in Consumer Expectations
Malcolm Waugh, CEO of Frugalpac, emphasized the need for the wine industry to adapt to younger generations' preferences. “It’s wrong to believe they’re not interested in wine,” he said. “They just want wine on their terms—aligned with their values of fun, convenience, and sustainability.”
He pointed out that traditional wine packaging, including heavy glass bottles and conventional branding, fails to resonate with younger consumers. Instead, sustainable alternatives like Frugalpac’s paper-based bottles—five times lighter than glass and with up to 84% lower carbon emissions—offer a way to modernize the industry.
Success with Sustainable Packaging
Frugalpac’s paper wine bottles have gained traction among younger drinkers. Coldplay partnered with When in Rome to offer Frugalpac bottles at their Manchester gigs, selling out all 8,000 units. Sales of wine in this format far outpaced those of traditional glass bottles, craft beer, and spirits. Similarly, festivalgoers at Glastonbury responded enthusiastically to Frugal Bottles from Aldi, When in Rome, and Wildjac during a sampling event last year.
Gen Z and Millennials Driving Change
Consultancy firm Grappos has found that Gen Z and Millennials are drawn to brands that reflect their sustainability values. CEO Eric Kunisawa explained that these consumers expect transparency in ethical commitments, fair trade initiatives, and environmentally friendly practices.
“They’re also reaching for wine in eco-friendly packaging rather than traditional glass bottles,” Kunisawa noted, highlighting a significant shift in purchasing behavior.
As the industry grapples with declining consumption, brands that embrace sustainability, innovative packaging, and modern branding may hold the key to attracting the next generation of wine lovers.