The wine industry is set for growth as it goes through a generational change in demographics.
Tiburon Strategic Advisors, a market reserach and consultancy firm from California, found in a recent report that millennials, women and the Chinese market are key drivers behind the growth.
The research shows that the industry is set for continuous growth over the next five years and this has made it an attractive space for investors.
It also shows that millennials are drinking more than ‘generation X’ and are drinking more often. According to the report, Women are responsible for 57% of wine drinking in the US and have an increasing purchasing power, and the Chinese market has seen phenomenal growth since discovering the industry just a few decades back.
Conclusions suggest that new world producers, who are willing to experiment with brands and lighter varietals are more likely to succeed in these new market conditions and enjoy sustained growth in a strong industry over the coming years.