Industry publications continue to report on the industry downturn, referencing lower production and waning consumption as driving factors. Many attribute declining consumption to a health conscious younger generation that is less interested in drinking wine than previous generations.
But at Liv-ex, we see things differently. We think the future of wine is bright, and that younger generations are simply changing the way they engage with wine, rather than turning their backs altogether. That said, wine businesses must adapt and evolve to better meet the needs of the next generation of enthusiasts.
Where’s the evidence?
2022 research from the IWSR reported in The Drinks Business found that millennials were likely to spend more on a bottle of wine than their boomer and Gen X counterparts. The same research highlighted that younger drinkers are more curious, and interested in trying new wines, including different grapes, styles and alternative formats.
Similarly Decanter researchers reported that ‘younger generations will spend more on less’, focusing on the quality, and being more likely to choose a high-quality bottle at home over multiple drinks out.
Liv-ex’s own transactional data points to a similar story. We’ve seen increased trade of drinking wines over the past seven years, as well as growing diversity of wines traded on the platform.
Trade of sub-£20 wines doubled between 2017-2024, and the number of wines traded below £40 per bottle increased 1.5x as well. While the volume of Bordeaux wines traded on the platform decreased by 26% between 2017 and 2024, the volume of Piedmont traded grew by 5.7%, California by 3% and Tuscany by 2.8%.
In the early 2000s, Italy represented just 1% of our traded stock, and last year it was 16%. While California didn’t feature when Liv-ex first began, now 5% of our traded stock comes from the region.” – Exchange Director and Deputy Chairman, Justin Gibbs
How can wine business adapt?
To stay relevant, wine businesses must offer greater variety and a modernised buying experience. Research suggests that younger people are less enamoured with the traditional wine regions of Bordeaux and Burgundy, and are more interested in variety and trying something new.
Liv-ex members can offer their customers far greater choice and variety, without the need to invest in new stock upfront. By integrating Liv-ex with their existing ERP, members can show all Liv-ex listings on their own ecommerce site. Members can even create personalised buying experiences by tailoring the view for each of their customers, showcasing only the most relevant and of-interest wines.
Give younger buyers the data they desire
Younger wine enthusiasts rely on data to guide decisions—from pricing to provenance to ABV.
Liv-ex is the most trusted data provider in the fine wine market, offering members a range of data points for hundreds of thousands of wines.
By integrating with Liv-ex, members can bring current and historic pricing data, critics scores, drinking windows and trading data into their system seamlessly. This can help them tailor their e-commerce site to younger, more health-focused audiences by allowing customers to filter wines in terms of ABV.
Thanks to the wealth of data they have access to, members can also instantly provide their customers with portfolio valuations, complete with all the data a collector needs to buy and sell with confidence.
To find out how Liv-ex can support your business goals, get in touch today.
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