The wine market: consumption, the sparkling boom, and the generational challenge

The wine market is currently in a phase of profound transformation. This emerged from the analysis presented by Prof. Massimiliano Bruni (President of the IULM Communication School Scientific Board) during IULM Alumni Day on October 24, on the occasion of Champagne Day. It is an increasingly “premium” market, especially in the sparkling segment, where sustainability and the growth of no- and low-alcohol segments are pillars of change. A market where new generations, particularly Gen Z, are forcing the sector to rethink its language, values, and consumption patterns.

Italy confirms its status as the third-largest country in the world for wine consumption by value, behind the United States and France. This figure highlights the strategic weight of the “Bel Paese” not only as a producer but also as a key market. The growth in domestic consumption, combined with stable exports, strengthens Italy’s position in the global wine landscape. However, this growth reflects a profound transformation in purchasing and consumption models, which are increasingly quality-oriented.

In 2023, the sparkling wine segment reached sales of €3.1 billion, equivalent to 733 million liters. Growth is driven by Champagne and Italian sparkling wines, which show higher increases than still wines. Despite substantially stable volumes, value is growing—a clear sign of the premiumization trend. Globally, sparkling wine represents a significant component of the market.

Champagne maintains a 3.6% share, down 8.4%, while sparkling wines stand at 14.4%, with a 1.4% decline. In contrast, the no- and low-alcohol segments are growing (+5.9%), confirming an evolution in consumption habits. Although Italy is not among the main markets for Champagne, it remains a leader in the production and consumption of sparkling wines.

Italian families with above-average incomes (over €55k), totaling about 6.5 million, show a strong propensity to spend on Champagne and high-end sparkling wines. Among these, younger households show a tendency toward experimentation and quality, while mature families tend to prefer traditional labels. Families with lower incomes, approximately 10.2 million, remain focused on budget-friendly choices, maintaining demand for mid- and low-range wines.

Wine remains a cultural symbol, but generational differences are clearly emerging. Among Baby Boomers, 66% consume wine, a 12-point drop from previous years. Gen X remains stable at 49%, while Millennials stand at 40%, showing growing curiosity toward cocktails and soft drinks. Only 15% of Gen Z consumes wine, preferring alternative experiences and beverages.

Each generation interprets consumption differently. Boomers associate wine with a cultural and ideological concept, while Gen X links it to social status. Millennials experience it as a global experience. Gen Z, on the other hand, seeks authenticity, connection, and social responsibility. For the youngest, consumption is an act of identity, linked to ethical and sustainable values.

The economic crisis and social changes have accelerated the shift from quantity to quality. Nearly half of consumers (44%) prefer to drink less but better, favoring premium and sustainable wines. This trend reflects the evolution of taste and the growing attention to the production chain. Our country also stands out for the strength of out-of-home consumption. Italy is among the European leaders with a 73% penetration rate and a 90% frequency, figures well above the EU average. This data confirms the central role of the Horeca channel and the importance of wine-related sociality in Italian culture.