Author: Areni Global
If producers want to stay relevant to younger consumers, they’ll have to go to the so-called “third” and “fourth that they congregate.
Read the wine industry’s headlines, and there’s plenty of hand-wringing about all the young people who aren’t interested. But in-depth research suggests the situation isn’t necessarily so bleak.
A wide-ranging 2024 survey by Wine Institute of California offers a more nuanced picture of what young people really think, says Honore Comfort, Wine Institute’s Vice President of International Marketing. Young people today have “a very positive perception of wine,” she notes, and have specific ideas about when and where and how it should be consumed: “that wine is about sharing with others and celebrating a special occasion. It belongs at the dinner table. If you’re going over to someone’s house, you show up with a bottle of wine.”
But while legal age drinkers recognise the value of wine, it’s not yet a consistent part of their world. Wine still tends to appear where older people gather, from fine dining restaurants to cellar doors to winemaker dinners. Meanwhile, younger consumers are building lives elsewhere.
Positive perception, limited engagement
According to the Wine Institute, younger adults see wine as the sophisticated beverage of moderation. But for them, it’s an occasional drink, not a regular one.
This isn’t just young Americans — the same trends are found elsewhere. An IWSR report noted that 73% of Gen Z of legal drinking age had consumed alcohol in the previous six months, up from 66% in 2023. But compared to older generations, they were more likely to vary their drinking repertoire across beverage categories.
This tendency, coupled with wine’s absence in the spaces where they congregate, mean that other categories are winning over wine.
Change the context
In the 1990s, sociologist Ray Oldenburg identified what he called “third spaces[1.1][1.2]”. The first space is the home, and the second is the workplace, while the third space is the place where people come together in a community, like a pub or book club. Oldenburg understood these third spaces as being critical to democracy.
In early 2025, Eventbrite research extended this idea to the “fourth space,” which is a hybrid of online and offline, where younger people congregate. “They’re searching for spaces that reflect who they are — places that tap into their interests and passions, whether they were born online or offline,” said the report. “As young adults navigate an increasingly hybrid world, they need something different: a new kind of space that bridges physical gathering and digital connection.”
These are real-world gatherings that grow out of communities formed online, which can involve anything from knitting to board games. What defines these groups isn’t the venue itself but the shared interest or identity.
This has implications for wine marketing, because Wine Institute research demonstrated clearly that people who are interested in drinks like wine are also interested in food and cooking. Eventbrite’s research shows that “49% of Fourth Space Seekers want to come together through food and drink events.”
In other words, wine needs to show up at culinary classes, supper clubs and at creator-led pop-ups.
Night economy
If fourth spaces are about micro-gatherings, there are also new places where the broader community gathers at night. An example is the night market, a staple of Southeast Asia now emerging in Western countries; New York began holding them as a way to revitalise Chinatown, badly hurt by Covid lockdowns. Night markets have also been popping up across Canada, particularly in Vancouver.
And they’re likely to spread, as they’re the perfect way to showcase diverse culture and cuisines, as well as having the potential to revitalise urban spaces while contributing to the night-time economy. The night markets are diverse, inclusive and photogenic, making them appealing to younger consumers. They offer a great opportunity to weave wine into a spontaneous urban event.
Music festivals
Of course, there is always music, one of the strongest social glues. But the relationship of alcohol consumption with concerts is evolving.
Research from the World Youth Student and Educational Travel Confederation finds that one of the main motivations for attending festivals is connection, not intoxication. Overall, alcohol consumption at events has fallen, and Student Beans reported in 2025 that only 27% of UK Gen Z and 17% of U.S. Gen Z plan to drink heavily at festivals.
While drinking still happens, it’s now convenience that wins. Beer and RTDs dominate, because they’re convenient and easy to carry, and because everyone knows whose drink is whose and exactly what’s in it. Wine producers like Archer Roose, who have put quality wines in cans, are building market share — because refusing to update formats means leaving the entire field to other beverage categories.
Home is where the party is
More and more young people are also partying around their own kitchen table. According to Insight Trends World, European GenZ shows “a strong preference for hosting gatherings at home rather than going out to public venues like bars or clubs.” It’s not just the Europeans. Young Australians and Brits are now just as stay-at-home as their continental counterparts.
There’s also growing research on the economic factor, with younger people saying they just don’t have the money to go out much — and even when they do, they’re cautious about how they spend. This homebody trend may also be a reflection of how risk averse younger people generally are compared to previous generations.
Speaking the right language
The implications for the wine trade are clear. First and foremost, “occasion design” needs to be treated as seriously as product design. And when it comes to products, small formats and portable packaging are important.
Other ideas include partnering with creators who organise and run fourth-space events, and reinventing the tasting to reflect the environments where new consumers socialise with one another.
And when wine does show up, Wine Institute’s Honore suggests it speaks in a voice that’s “fun, fresh, approachable, witty, direct, but simple.”
Young people haven’t rejected wine. It’s just that it tends not to be anywhere they can see it. That’s what must change now.
About Areni Global :
Areni Global is a research organisation dedicated to addressing the critical challenges facing fine wine. Our research on fine wine production, distribution and consumption informs leaders, directs action and shapes the future of our industry. We produce whitepapers, market reports, articles and podcasts.
