Innovation, sustainability and dynamism: at “Wine Paris” the recipe by Circana for wine future

Reinvent the range of products, and, therefore, focus on high-growing segments such as low or “zero” alcohol content, functional beverages, and the so-called “premium experiences”, but also implement advanced analyses to foresee the demand, optimize the promotions, and improve the involvement of buyers. And, still, reinforce the retail partnerships, and, therefore, collaborate with sellers to align sustainability initiatives and innovate in “ready to drink” alcoholic drink segment, up to improving the involvement of consumers passing through traditional marketing to dynamic strategies driven by social media in line with new generations. This is the advice supplied to producers of wine and alcoholic drinks by Circana, a research and market analysis society that “gets an idea of” the behavior of consumers, a fundamental variable to plan the future, and remain protagonists in an increasingly more complex market. It did that at Wine Paris 2025, the first great fair of the sector of the year, occurring in Paris, highlighting “the urgent necessity to reinvent oneself in the middle of changing behaviors of consumers, to economic pressures, and dynamics of emerging markets”.
In his speech, today, at Wine Paris, Ananda Roy, Svp of Thought Leadership Europe, and Cpg Growth Advisor Circana, offered new cues from his presentation, “Vino e liquori: nuovi orizzonti in un mondo che cambia” - “Wine and spirits: new horizons in a world which changes”. Roy underlined that the sector “has to embrace the disruptive innovation, respect its rich heritage, and adapt to new rituals and consumer needs”.
Data analysis by Circana reveals that the market of alcoholic drinks in the 6 main Eu countries touches 69 billion euros, explained Roy to WineNews (the video speech will be online in the next days, ed), and represents 43% of all sales of beverages, but is coping with a remarkable drop in sales in terms of volumes (-1.1%). A not homogeneous decrease considered that wines registered a drop by 1.9% while alcoholic drinks decreased by 4.4%. Despite the growth in value driven by inflation, the demand remains weak signaling an urgent necessity of transformation at a sector level.
The positive aspect is that, despite the sales and alcohol consumption are decreasing, the demand for premium products, the “experiential” aspect researched in a beverage (such as, for example, the possibility to recreate the “out-of-home” inside one’s home), and smaller portions are contributing to weaken the blow. And, this because “consumers look for something more than a simple drink: they desire experiences in line with their values: health, sustainability, and authenticity”, highlighted Roy, who, regarding the concept of innovation, specified as this “doesn’t regard only the new products”, but, rather “it is about rethinking the way in which consumers interact, incorporating sustainability in our DNA, and making wines and spirits “cool” again. The brands which understand and reply to these needs will drive the future”.
Moreover, research reveals that a significant generational change is reshaping market panorama. Almost a quarter of young people between 25 and 35 years stopped to purchase alcoholic drinks with an additional 13% who delayed the purchases. This trend is fostered by the awareness linked to health, by economic pressures, and by a growing preference towards innovative and functional beverages offering more than the tradition alcoholic options.
If “premiumization” is still a motor of growth for the sphere of value, the sector struggles to maintain its boost. “Ready to drink” emerges among the good notes (+2.3% for volumes), but overall innovation underwent a slowing down with the launch of new products dropping by 9.2% on an annual basis indicating, therefore, “the necessity of more dynamic and captivating offers. Including that of wine in can, which seemed to be unthinkable few years ago, as well as bag-in-box”, commented Ananda Roy to WineNews.
Sustainability is contributing to stimulate the growth, but challenges remain. If it is true that 98% of European retailers are engaged in favor of sustainable supply, the economic accessibility and availability are limiting consumer demand. Integrate sustainability in brand strategies, according to Circana, “will allow wine and alcoholic drink industry to align with the values of consumers, and to promote commercial success”.
Innovation will drive the future of the sector, so that trends, at this point already famous as wines in can, no-alcohol beverages improving the mood, and the personalized and experiential consumption, are reshaping the category. Taking advantage of social media, and the involvement of influencers is considered to be fundamental to lure the attention of today’s audience which is fragmented, and with little time at their disposition.
According to the recent analysys by Circana, “Sector Spotlight: Beverages - What we drink, what we think”, the innovation of no-alcohol beverages is driving the growth because consumers who pay attention to health look for healthier alternatives. The demand of functional beverages, vegetable-based options, and beverages enriched with proteins is increasing, and not casually, sport and energetic drinks become substitute of traditional beverages containing caffeine, mainly among younger and more active consumers. Therefore, we are in a period of “revolution” with a surprising scaling by private branded beverages which are demonstrating to be more able to propose innovation without overlooking quality, and leveraging on competitive prices. “Things are rapidly changing, it is a moment of great change, There are phenomenons, such as that of no and low alcohol wines which are not trends, they are already important realities. The laws from milder are becoming stricter, as well as taxation systems. An open mentality to seize the opportunities is needed for wine sector and for that of beverages overall”, concludes to WineNews Ananda Roy.