Wine Industry Leaders Warn Fine Wine Market Faces Fundamental Shift as Younger Consumers Change Buying Habits

A panel of leading wine industry experts has warned that the fine and premium wine sector faces a period of fundamental change as it confronts a generational shift in consumer behavior. The discussion took place at a recent Liv-ex members event, where Max Lalondrelle, managing director of fine wine at Berry Bros. & Rudd, said the current model for selling fine wine is no longer working. He argued that over the past two decades, the industry has focused on selling wine by price, which has damaged trust among buyers. Many customers have seen wines they purchased appear later on the secondary market at lower prices, eroding their confidence.

Lalondrelle explained that this loss of trust has coincided with global economic and geopolitical challenges. He noted that there is now a large volume of fine wine stored across Europe but fewer active buyers. The industry, he said, must decide whether to wait for consumers to return or to fundamentally change its approach to selling wine. He predicted that in 15 to 20 years, traditional practices such as selling wine in bond by the case may disappear, as younger generations do not want to consume or collect wine in the same way as previous generations.

The panel agreed that merchants and platforms need to shift away from discounting and focus on selling the product itself. Evgeny Chichvarkin, founder and owner of Hedonism Wines, highlighted how some companies are forced to sell at a loss at year-end to meet sales targets or generate cash flow for new vintages. This practice contributes to instability in the market and further undermines buyer confidence.

The discussion also touched on changes in the customer base for fine wine in London following adjustments to non-dom tax rules in the UK. Chichvarkin said his company is seeking new partners in markets like Dubai due to these shifts. However, Lalondrelle noted that while some high-net-worth individuals have reduced their spending—from £100,000 to £50,000 annually—many have not left the market entirely but are simply buying less.

Simon Farr, founder of Cru World Wine, described the current situation as a secular shift rather than a typical downturn. He pointed out that baby boomers, who drove much of the fine wine boom, are no longer buying wine to store for future consumption. The market was further fueled by growing global wealth and low borrowing costs after 2008, but these factors are now fading. Farr believes this will lead to a fundamentally different market environment going forward.

Farr also emphasized the importance of engaging consumers through experiences rather than just sending out offers or price lists. He suggested that inviting people to taste wines and learn about their stories will be more effective in building lasting relationships with customers.

Matthieu Jullien, CEO of LVMH Vins d’Exception, echoed these sentiments and called for greater collaboration across the industry. He said producers and merchants need to focus on hospitality and storytelling rather than relying solely on traditional distribution methods. Jullien reported optimism from international markets such as India and Hong Kong, where demand for fine wine remains strong.

Despite concerns about confidence within the industry, panelists identified positive trends such as hybrid retail concepts and increased interest from younger consumers who want more choice and affordable options. Lalondrelle also highlighted the untapped potential among women as collectors and investors in fine wine. Berry Bros. & Rudd is actively working to attract more women and younger buyers into the world of fine wine collecting.

The consensus among experts is that while recovery is possible, it will require significant changes in how fine and premium wines are marketed and sold. The industry must adapt to new consumer preferences and find ways to rebuild trust if it hopes to thrive in the coming decades.