Still, it’s not a complete wash for the wine industry, with premium wines showing “excellent growth and returns.” And young consumers certainly have the money to spend on wine if they so please: A report from Bain & Company notes that the luxury market is seeing growth thanks in part to spending by Millennials and Generation Z.
But even so, McMillan is concerned that a failure to get young people into the wine industry through lower-priced bottles will ultimately catch up with even the higher-end offerings. “There has never been a wider gulf between the success of the production side of the wine business and that of the premium side,” his report says. “Those issues impacting lower-priced wine will eventually impact premium producers too if nothing alters the current consumer trajectory.
So he recommends that wine producers do a better job of marketing to this younger cohort, emphasizing sustainability, social responsibility and health and wellness. Until they do, the world of American wine might remain an older person’s game.