Younger Wine Drinkers Fuel Demand for Alternative Bottles

Younger wine drinkers are driving demand for alternative wines, including natural, organic and sustainably produced bottles, but the category is still facing obstacles tied to price, availability and consumer habits, according to a new report from IWSR.

The research firm said Thursday that the global market for sustainable, organic and alternative wines has continued to mature, with Gen Z and Millennials emerging as the main growth engine across five core markets and 10 secondary destinations. But IWSR said older consumers remain less engaged, and many shoppers still say they have trouble finding these wines in stores, bars and restaurants.

The report, Opportunities in Sustainable, Organic and Alternative Wine 2025, found that consumer interest has risen in several major markets since 2023, especially in Australia, Canada, the United Kingdom and the United States. China continues to show the strongest link between wine drinking and sustainability concerns, though those attitudes have leveled off compared with 2023.

Organic wine has remained one of the strongest segments. Volumes have grown over the past five years in most markets, though the pace has slowed recently. France and Germany remain the largest markets by volume, but growth has been faster in Australia, where organic wine sales posted a compound annual growth rate of 14% from 2019 to 2024. Canada grew 2% over that period, while the United Kingdom grew 1%.

IWSR said natural wine remains the top opportunity in its index of alternative wine types, which weighs market potential against the size of each country’s wine-drinking population. Organic wine ranks second, helped by steady awareness and rising engagement in key markets. Sustainably produced wine is also gaining ground, particularly in countries where concern about sustainability has increased, including the United Kingdom, China, the United States, Australia, Canada, South Korea, New Zealand, Japan and Denmark.

“The global market for sustainable, organic and alternative wines continues to mature, driven primarily by younger wine drinkers, whose strong alignment with sustainability, healthy lifestyles and ethical consumption is reshaping demand,” Dan Mettyear, head of research for EMEA at IWSR, said in a statement. “However, growth is constrained by several barriers. Across markets, consumers report limited choice and availability in both the off- and on-trade as the biggest obstacles to buying alternative wines. Price, perceived value and a preference for familiar, more traditional options also remain significant challenges.”

The report said younger consumers are especially important in Australia, the United States, China, Canada and the United Kingdom. In those markets, at least half of Gen Z and Millennial regular wine drinkers said they felt a strong connection to sustainability. At least 64% said they felt strongly connected to alternative wines.

By contrast, Boomers showed much weaker interest in Australia, the United States, Canada and the United Kingdom. IWSR said older consumers were less likely to connect alternative wines with sustainability or see them as worth trying.

“Engaging older consumers remains critical for sustaining long-term growth, as they represent the largest age group in many mature markets,” Mettyear said. “Boomers tend to show a lower connection to sustainability and limited interest in alternative wines, remaining unconvinced of their value. Increasing awareness and improving penetration among these older age groups remains an important focus for the future of the category.”

IWSR said limited choice and availability remain major barriers across all three main segments it studied: organic, natural and sustainably produced wines. Between 17% and 23% of regular wine drinkers across the five core markets said there was not enough choice in retail or on-premise settings. Between 18% and 23% said these wines were too expensive. Another 31% said they preferred to stick with wines they already knew and trusted.

Consumers also reported difficulty finding these products in stores and restaurants. Sustainably produced wine was singled out as having especially limited options across all five core markets.

The report also pointed to signs that some alternative categories are broadening beyond their niche audience. Regular wine drinkers increasingly described these products as better for health or as part of a healthy lifestyle. Orange wine moved up two places in IWSR’s opportunity index since 2024, passing pét nat. Biodynamic wine also improved compared with 2021. Still, both ranked near the bottom overall at ninth and tenth place.

IWSR said China, the United Kingdom and the United States appear to offer the strongest long-term potential as more consumers expand their interest in alternative wines and health-related claims continue to gain traction.