Younger Americans Drive Alternative Wine Growth

Alternative wines are gaining ground among younger American drinkers, but the category is still being held back by limited shelf space, weak value perceptions and a gap in interest among older consumers, according to new research from IWSR.

The market research firm said demand for natural, organic and sustainably produced wines has continued to build across the United States and other major wine markets, with Gen Z and millennials driving much of the growth. But the report also found that many shoppers still struggle to find these wines in stores and restaurants, and that price remains a major obstacle when they do.

IWSR said its 2025 report on sustainable, organic and alternative wine showed that purchases of these products have risen sharply since 2023 in most subcategories in the U.S., Canada, the United Kingdom and Australia. The firm said the trend reflects stronger consumer interest in sustainability and health, especially among younger regular wine drinkers.

In the U.S., as in other markets, the report found that at least half of younger regular wine drinkers say they feel a strong connection to sustainability, and at least 64% say they feel closely connected to alternative wines. That level of engagement is helping support sales of organic wine and other niche categories even as overall wine consumption remains under pressure.

Still, IWSR said growth is uneven. Mature wine markets such as France and Germany remain larger in volume terms, but they are expanding more slowly than countries including Australia, where alternative wine volumes grew at a compound annual rate of 14% from 2019 to 2024. Canada posted a 2% compound annual growth rate over the same period, while the United Kingdom grew 1%.

The report said natural wine remains the biggest opportunity within the category, based on market size and performance in China, Australia and the U.K. Organic wine ranked second, helped by steady awareness and rising engagement in several markets. Sustainably produced wine is also gaining traction in countries where consumers have become more receptive to environmental claims, including the U.S., the U.K., Canada, Australia, South Korea, New Zealand, Japan and Denmark.

Dan Mettyear, head of research for EMEA at IWSR, said younger drinkers are reshaping demand because they are more likely to connect sustainability with their buying decisions. But he said growth is constrained by “limited choice and availability in both the off- and on-trade,” along with price concerns, doubts about value and a preference for familiar wines.

The report also pointed to a generational divide. Older consumers showed lower awareness and less purchase interest in alternative wines than younger adults did. That matters for U.S. producers, importers and retailers because it limits how quickly the category can move beyond a niche audience.

For American wineries and distributors, the findings suggest that alternative wines may have room to grow if they can secure broader placement in grocery stores, wine shops and restaurants while also making a clearer case on price and quality. The challenge is not only convincing younger consumers to buy once, but also persuading a wider range of drinkers that these wines offer enough value to become part of their regular purchases.