UC Davis Chile Survey Identifies Key Challenges for Reconnecting Wine with Younger Generations

• An international study led by UC Davis Chile, the UC Davis Department of Viticulture and Enology, and Arizona State University surveyed Chilean wine industry stakeholders to better understand how the sector perceives changing wine consumption trends worldwide.

• Seventy-seven percent of respondents reported a sustained decline in wine demand over the past five years. Cultural and generational shifts—including lower alcohol consumption and perceptions of wine as "too complex" and "too formal"—were identified as the leading drivers.

• The survey also found that 83% of industry stakeholders acknowledge they do not fully understand Generation Z, whose beverage preferences increasingly favor ready-to-drink (RTD) cocktails, beer, and non-alcoholic alternatives.

Global wine consumption declined to approximately 28.5 billion bottles in 2024, down 3.3% from the previous year and its lowest level since 1961, according to the International Organisation of Vine and Wine (OIV). The downward trend has continued in recent years, creating significant challenges for wine-producing regions around the world.

Against this backdrop, researchers specializing in sensory science and consumer behavior from the UC Davis Department of Viticulture and Enology, UC Davis Chile, and Arizona State University conducted a survey examining how Chile's wine industry perceives current market trends. The study found that 77% of respondents reported a sustained decline in demand over the past five years, confirming a downward trend that has persisted beyond the COVID-19 pandemic.

In 2025, only two of Chile's six largest wineries reported profits, while the remaining companies posted losses amid weakening global demand.

Conducted between January and March 2026, the survey gathered responses from 143 stakeholders across Chile's wine sector, including winery representatives, producers, exporters, grape growers, retailers, service providers and academic institutions.

Beyond documenting declining demand, the study identified significant knowledge gaps regarding today's wine consumers. Eighty-three percent of respondents said they do not fully understand Generation Z, while 69% identified product development as the business decision that would benefit most from a better understanding of consumer behavior.

The survey also found that lower- or no-alcohol content (57%) and branding aligned with contemporary lifestyles (52%) are the attributes most frequently cited as advantages over traditional wine products. Respondents observed that younger consumers are increasingly choosing ready-to-drink (RTD) cocktails, beer and alcohol-free beverages, driven less by price than by convenience, brand identity and perceptions of health and well-being.

"The cultural and generational changes we are seeing explain a significant share of the decline in wine consumption, both globally and in Chile," said Jimena Balic, Affiliated Senior Consultant at UC Davis Chile. "These trends are also shaped by factors such as pricing and the adoption of healthier lifestyles."

Balic added that wines priced between US$10 and US$40—the core segment of Chile's wine industry—have experienced the largest reported decline in demand (63%), representing a direct challenge for the country's primary wine market.

Researchers from the UC Davis Department of Viticulture and Enology, Arizona State University and UC Davis Chile developed the survey as part of a broader applied research initiative integrating sensory science, consumer research and behavioral modeling.

According to the research team, understanding consumer behavior has become a strategic necessity rather than a complementary research activity. At the same time, data from Chile's Central Bank and other public sources show that wine exports have declined steadily—from nearly 940 million liters to fewer than 700 million liters in only a few years—while domestic consumption has not been sufficient to offset those losses.

Understanding Today's Consumer: Perspectives from Academia and Industry

According to researchers, the challenge extends beyond the product itself.

"The gap lies not only in wine's intrinsic qualities but also in the industry's language, the consumer experience and cultural codes that continue to resonate primarily with older generations," Balic said.

She argues that the industry must "decode" wine for new audiences by simplifying its communication and making it more accessible both symbolically and practically.

"This means rethinking not only what we produce, but also how wine is presented, explained and incorporated into new consumption occasions that reflect more casual lifestyles," she said.

Researchers and industry representatives agreed that updated, evidence-based consumer research is essential for revitalizing demand. The study proposes future sensory evaluations with younger consumers, international consumer surveys and predictive preference models to better understand which wine attributes encourage—or discourage—adoption among younger generations.

"Reviving interest in wine should not be viewed simply as a marketing campaign," Balic said. "It requires a deeper redesign process that combines science, innovation and a more nuanced understanding of ongoing cultural change."

Rather than reflecting a temporary decline in sales, the survey suggests a growing disconnect between industry expectations and consumer preferences.

Approximately 80% of respondents identified cultural and generational shifts as the primary barrier to wine consumption, noting that wine is widely perceived as "too complex" and "too formal," making it less relevant in emerging consumption occasions, particularly among younger consumers.

The survey also found that competition comes not only from price but from beverages that better align with younger consumers' lifestyles, with growing preferences for non-alcoholic products and brands that project a more relaxed, contemporary identity.

Balic said the findings should encourage Chile's wine industry to reconnect with younger consumers through product innovation, simpler communication and a better understanding of emerging motivations behind both alcoholic and non-alcoholic beverage choices.

"Without that adaptation," she said, "the decline in wine demand is unlikely to reverse over the medium term."

Building Evidence for Innovation

According to Dr. Ha Nguyen, Assistant Professor of Sensory Science in the UC Davis Department of Viticulture and Enology, wine consumption research has historically focused on consumer preferences rather than the perspectives of producers, exporters and distributors, leaving an important gap in understanding how the industry interprets changes occurring in the marketplace.

"While the industry recognizes that younger consumers are drinking less wine, it does not yet fully understand why," Nguyen said. "Emerging evidence suggests that the challenge is more about communication than the product category itself. Many members of Generation Z report feeling disconnected from wine and perceive it as difficult to access or understand, rather than rejecting it outright."

The survey also shows that ready-to-drink beverages, beer and alcohol-free alternatives are gaining popularity among younger consumers because they better align with contemporary lifestyles and offer greater convenience and accessibility.

Nguyen said these findings provide a strong foundation for future consumer-focused research, using industry perspectives to guide new surveys and identify strategies for reducing barriers to wine adoption among younger generations.

A key innovation of the study is its focus on the observations and experiences of those closest to the market—producers, exporters and distributors—rather than relying exclusively on consumer surveys.

The same research is currently being conducted in California by the University of California, Davis and Arizona State University, using the same survey instrument to compare perceptions and trends across different wine-producing regions.

Preliminary findings point to opportunities for innovation in ready-to-drink wine products, lower-alcohol wines and wine-based beverages that better align with the preferences of younger consumers, rather than expecting new audiences to navigate the traditional complexity of wine.

As one of the world's leading wine exporters, Chile is well positioned to develop and scale these products for international markets, where demand for more accessible, lifestyle-oriented beverages continues to grow.