Non-alcoholic wines seen as key to reviving Europe’s declining wine industry

Enjoying wine is part of Europe’s cultural history, and it has become fashionable to drink less, especially among younger generations.

That’s why a group of experts is encouraging the European wine industry to embrace the growing market of low and non-alcoholic wine. It might be the key to stop the negative economic trend. 

EU citizens account for roughly half of global wine consumption, drinking 107 million hectolitres in 2023. But that consumption has been in decline for many years. 

During 2010 and 2020, EU consumption fell by almost a quarter. This decline is expected to continue, albeit at a slower rate. 

The reasons for this decline, according to experts, are health concerns and changing drinking patterns. Thus, the idea of offering consumers low or non-alcoholic options.

Last year the EU Commission established a reflection group to study the situation of the wine industry. 

The reason was “to address the current challenges that the wine sector is facing, such as extreme weather conditions, how to adapt to a changing climate and changing environment, but also shifts in consumer taste”, as Gerardo Fortuna explains, a Euronews reporters who covers the industry.

Given the current tough situation for international trade, the export of wine is down as well as the domestic consumption, Fortuna says.

That’s why the reflection group recommended to the industry to explore the segment of low or non-alcoholic wines which are becoming more and more popular.

There’s a growing market potential for European producers as the size of the global market for non-alcoholic wine will grow from almost €8 billion today to €14billion by the end of 2031.

That represents annual growth rates of more than 10%. The biggest markets are the US, Canada, Australia and India. 

It seems that proud EU wine producers are finally coming around to the idea of non-alcoholic wine. That’s a significant shift compared to just a few years ago.

Yet balancing traditional wine interests with emerging opportunities is a challenge for European  wine producers, says Eric Sargiacomo, vice chairman of the Agriculture Committee in the European Parliament.

But the industry is well positioned will make this a success, he says.

It is always difficult to give up long cherished traditions and embrace change, but overall non-alcoholic wine can be a flavourful and healthy alternative for those looking to enjoy drinks without alcohol.

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And if European winemakers get fully on board, this could also be a powerful business opportunity in the years to come.