Eco-Friendly Wines and Innovative Packaging Drive Growth Amid U.S. Market Decline

The U.S. wine market is facing a period of significant change, with overall sales declining for three consecutive years. Despite the presence of more than 11,000 wineries across the country, the largest 50 producers now control over 90% of the domestic market by volume, according to WineBusiness Monthly. This concentration has made it difficult for smaller brands to adapt quickly to shifting consumer preferences and market forces.

Recent data from Sovos ShipCompliant’s Consumer Wine Shipping report shows a 12% drop in nationwide shipment volume from January to June 2025, with value slipping by 6%. These figures have raised concerns throughout the industry. However, some sectors are bucking the trend and achieving strong growth by responding to new consumer demands.

One area seeing robust expansion is eco-friendly wine. Consumers, especially younger ones, are increasingly seeking wines that are produced with environmental responsibility in mind. A meta-analysis published in Food Quality and Preference found that people are willing to pay about 15% more for wine labeled as sustainable. The IWSR reports that young consumers are driving growth in organic wine sales, and a recent Wine Market Council study found that 60% of younger buyers want organic or sustainable options. While overall wine sales have dropped, organic wine sales grew by 2.6% last year, according to Nielsen IQ.

Countries like Austria have benefited from this trend. With a quarter of its vineyards certified organic, Austria has increased its export value by $105.7 million since 2015. Oliver Chramosta of Austrian Wine says that international recognition for low-intervention and sustainable practices is opening new business opportunities worldwide.

The global organic wine market was valued at nearly $9.84 billion in 2021 and is projected to grow at an annual rate of 11.3%, reaching about $25 billion by 2030. Wineries such as Sicily’s Alileo Wines are investing in sustainability certifications because they see clear demand from consumers who want authenticity rather than marketing spin. Alileo has experienced a 20% year-over-year sales increase, driven not only by its eco-friendly approach but also by its packaging—premium boxed wine that reduces waste and production costs.

Packaging is another area where consumer preferences are changing rapidly. More than half of Gen Z drinkers value boxed wine for its environmental benefits, and two-thirds find it more convenient for social occasions, according to research from Ocado. Zach Poelma of Southern Glazer’s Wine and Spirits notes that premium canned wine sales are growing at high double-digit rates, outpacing lower-priced alternatives.

Archer Roose Wines, which offers low-intervention luxury wine in cans, sold over 100,000 nine-liter cases last year—a record for the company—with a 45% increase in sales velocity and a 26% rise in depletions. CEO Marian Leitner-Waldman attributes this success to meeting demand for moderation and convenience: single-serve formats allow consumers to enjoy quality wine without opening a full bottle. The brand also appeals to those seeking vegan, gluten-free, and sustainably sourced products.

Une Femme Wines is another example of rapid growth in alternative formats. The company expects to sell 300,000 cases this year and has seen case depletion growth of 122% through June compared to last year. CEO Jen Pelka says their customers view canned wine as an upgrade in convenience and sustainability rather than a compromise on quality.

Wineries are also finding success by integrating their brands into broader lifestyle experiences through partnerships and collaborations. Rivaura Estate Vineyard and Winery in Idaho has grown production to 5,000 cases and consistently sells out thanks to a partnership with American Cruise Lines, which brings regular groups of visitors for tours and tastings. The winery has expanded its offerings with a nanobrewery, food truck, and plans for a beachside tasting room on the Clearwater River.

At 3100 Cellars in Eagle, Idaho, founder Hailey Minder credits doubling sales year-over-year to strategic partnerships with local businesses and focusing on sparkling wines—a unique selling point in their region. By working closely with local restaurants and offering exclusive experiences at their tasting room, they have built strong community ties.

Nationally distributed brands like Archer Roose and Une Femme are targeting venues where consumers spend their leisure time—music festivals, sports arenas, airlines such as JetBlue and Delta, cruise lines like Virgin Voyages, hotels including Hilton properties, and cultural institutions like the Metropolitan Museum of Art. These partnerships align with how people want to experience wine today: as part of travel, entertainment, or social gatherings.

Across the board, successful brands share several traits: clear values around sustainability or lifestyle; innovative packaging; strategic partnerships; and an ability to create memorable experiences beyond just selling bottles. As consumer expectations continue to evolve toward convenience, environmental responsibility, and enjoyment beyond traditional settings, these strategies appear essential for achieving double-digit growth in an otherwise challenging market environment.