In what feels like a make or break year in the ‘Wine Paris and/or Prowein’ debate, Lucy Britner brings readers key trends from this week’s show in the French capital

Wine Paris organiser Vinexposium’s promise of a larger and more international show certainly felt as though it had been delivered at the Paris Expo Porte de Versailles earlier this week. Numbers just in from organisers confirm a “record-breaking”total of 52,622 visitors attended, with 45% coming from 154 countries. Despite the ongoing challenges the industry is facing, the trade was out in force to taste, talk trends and do business.

Setting out the stall for the global trade, Circana’s SVP of thought leadership Europe and CPG growth advisor Ananda Roy opened the show with a strong case for more innovation as well as “industry transformation”.

He says ‘more of the same’ won’t cut it, as consumer habits continue to change.

Circana’s data analysis reveals that what it calls the EU6 alcoholic beverages market (France, Germany, Netherlands, Spain, Italy, UK) is facing a “notable decline in volume sales”, down by 1.1% (Circana POS data; period ending MAT Nov 2024). Wines saw a 1.9% drop, while spirits have fallen by 4.4%. Those six markets are valued at £57.5 billion.

“Despite inflation-driven value growth, organic demand remains weak, signalling an urgent need for industry-wide transformation,” Roy tells the audience.

He adds that a growing demand for premium products, unique experiences and smaller servings are helping soften the blow. Smaller servings could be the reason why RTDs emerged as a positive during the presentation, with Roy pointing to a 2.3% increase in volume growth in those six markets.

At another talk about hunting growth, IWSR director of consulting Luke Tegner also highlights the growth of RTDs as well as beer, which he describes as a way consumers can still have a premium alternative to more costly categories such as spirits. In the UK, premium beer serves grew ahead of premium spirits in H1 2024, compared to the same period a year prior, Tegner’s presentation says.

Circana’s Roy believes consumers are seeking more than just a drink. “They desire experiences that align with their values – health, sustainability, and authenticity,” he explains. “Innovation isn’t just about new products; it’s about rethinking how we engage with these consumers, embedding sustainability into our DNA, and making wines and spirits ‘cool’ again. Brands that understand and respond to these needs will lead the future.”

YOUNGER DRINKERS

Perhaps unsurprisingly, Roy’s data shows 23% of 25–35-year-olds have stopped buying alcoholic drinks, with an additional 13% delaying purchases. Roy says the trend is fuelled by health consciousness, economic pressures and a “growing preference for innovative, functional beverages that offer more than traditional alcoholic options”.

At IWSR, Tegner makes a case for new moderation strategies.

“As the no/low category develops and more products come to market, other drivers besides alcohol moderation are becoming more important in increasing consumption frequency, particularly in emerging no-alcohol categories.” He cites factors such as taste, availability and brand in categories outside of alc-free beer.

Out in the show, producers also echo this sentiment.

Richard Cochrane, managing director at Felix Solis UK says beer is leading the charge in the no alcohol segment. “Perhaps it could become as big as beer with alcohol – 50/50 – that sort of direction. Wine is maybe not going down that path.”

Cochrane explains this is a good thing “if wine sticks to its guns and makes a compelling argument”.

He highlights the growth of his Spanish brand Mucho Mas, which he says has grown volumes in the UK more than any other Spanish brand in the last 12 months.

“It is possible to grow in a wine market that’s not been having such an easy time, but you’ve got to try and find where you get that connection.

“For wine, it comes down to when you taste it and if you enjoy it there’s more chance of going back to it. I think that’s an element that is being lost at the minute with everyone taking alcohol out.”

He explains that if a consumer loves a wine at 14% and tries the same one at 10%, they think “actually that’s not the same thing”. He says there’s a risk of pursuing lower abvs for duty reasons and losing flavour.  

An argument, then, for wine leaning into an indulgence occasion.

INNOVATION AND THE FUTURE

Circana’s Roy flags that innovation has slowed, with new product launches down 9.2% year-on-year.

With that in mind, Roy believes that “disruptive innovation is at the heart of the industry’s future”. He highlights trends such as canned wines, mood-enhancing non-alcoholic beverages, and personalised, experiential consumption. Elsewhere he says leveraging social media and influencer engagement is crucial in capturing the attention of today’s fragmented and time-poor audiences, though he’s keen to point out that consumers are more likely to engage with influences that feel authentic, rather than ones that appear too polished.

Speaking more specifically about the UK, he describes a “very defined retail landscape, so the role of the retailer is becoming critical”. He explains that ultimately, UK retailers decide what to put on shelves and at what price.

“Working with retailers has become non-negotiable,” he says. “There has traditionally been a bit of tension between brand manufacturers and retailers in terms of their negotiations, but it has come to a stage now where you have to build a strong retail relationship.”

He also mentions premiumisation. “It is a big mistake to think that in the cost-of-living crisis there is no scope for premium products. Consumers are selecting quality; they’re drinking smaller amounts, but they’re drinking quality products. They are open to innovation. So premiumisation is the trend, but it needs to be a trend that you are innovating.”  

Sustainability, he says, is the third, non-negotiable UK trend.

 Overall, Roy stresses that there will be a cost to doing nothing.

“Capitalise on evolving consumer preferences by adopting a holistic, data-driven approach to portfolio strategy and innovation, focusing on occasions and need states across the beverage ecosystem,” he finishes.

Listening to talks and chatting to producers, there is a definite need for exciting innovation. Perhaps it’s time to start talking about what drinks of all kinds can add to an occasion, rather than focusing on what’s being taken away.

by Lucy Britner

Credits: drinksretailingnews.co.uk