Despite the recent change in wine consumption trend, a Yarra Valley vineyard continues to hold a strong place in the industry.
De Bortoli Wines, a major Australian wine exporter which has a winery and a vineyard in the Valley, decided to remove some of its vineyards in the other regions due to the shifting consumer insights and preferences.
Managing director Darren De Bortoli said they are removing vineyards at Bilbul and Rutherglen.
“Yarra Valley vineyard is not on the list of removing vineyards. As is the case with many producers in the industry, we’re continually assessing how we do business to ensure we are adequately responding to shifting consumer insights and preferences,” he said.
“It’s an ongoing process, and part of staying adaptable in a constantly changing landscape.
“The decision reflects broader shifts we’re seeing in consumer behaviour across the industry. Red wine consumption in particular has been impacted by evolving preferences, with younger consumers, including Gen Z, drinking less and tending towards lighter styles. That’s not to say they won’t engage with red wine later in their wine journey, but currently, the market is adjusting to that reality.”
Wine Australia revealed data about the change in global trends in wine consumption on its website.
“In the five years to 2023, global consumption of wine fell by 3.1 billion litres – that is the equivalent of 31 billion standard glasses of wine,” it reads.
“Volumes are now below pre-pandemic levels, and IWSR has forecast wine consumption to fall by another billion litres by 2028.
“If that happens, the global wine market will have shrunk by 20 per cent over the decade. The total loss in wine consumption would be more than four times the size of Australia’s annual wine production volume.”
Wine Australia pointed out six causes influencing the drop in the volume of wine consumption.
Mindful drinking: Increasing numbers of consumers are choosing to reduce or eliminate their alcohol and wine intake due to health and sustainability concerns.
Demographic shifts: On average, global consumers are getting older and living longer as a result of declining birth rates and rising life expectancy, however, younger consumers are drinking less alcohol than previous generations, often choosing to abstain altogether for periods of time.
Changing beverage preferences: One major development is a surge in demand for functional beverages that cater to consumers who seek more than just hydration from their drinks. These beverages are specifically formulated with ingredients that offer additional health benefits, such as boosting energy, improving digestion, relieving stress or supporting the immune system.
Evolving wine-drinking occasions: Wine has become less of an everyday drink and more of an occasion-based drink.
Cost of living pressures: Economic pressures due to higher prices and other financial concerns are also causing many to drink less wine.
Geopolitical uncertainty: Geopolitical tensions and international conflicts are disrupting supply chains, making it difficult for wine producers to get their products to market.
Nevertheless, the wines produced with the grapes grown at the De Bortoli Yarra Valley vineyard still have strong demand from consumers.
“The Yarra Valley is a well-regarded cool climate region, known for producing high-quality Chardonnay, Pinot Noir, Cabernet Sauvignon, etc,” Mr De Bortoli said.
“As a region, it continues to hold a strong place in the market and in the minds of consumers.”
