European Wine Industry: Structural Decline and the Battle for Premium
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European wine: structural decline and the struggle for premiumization

The European wine industry is entering a phase of structural adjustment due to decreasing consumption on the one hand and increasing global competition on the other, reports Logos Press.
Дмитрий Калак Reading time: 1 minute
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wine in Europe

Wine consumption in the European Union is showing a steady decline that could continue over the next decade, according to industry research and analytics platform Vino Joy News .

The decline in demand is due to changing consumer habits, demographics and growing interest in alternative drinks, says Vino Joy. Producers are already responding by reducing acreage. In the Bordeaux region, vineyard acreage has decreased by around 7-8% in recent years, with some farms switching to alternative crops or reducing output.

At the same time, the global wine market in Europe retains its scale: its volume is estimated at $168-173 billion in 2026-2027. Growth is driven by the premium segment and exports outside the EU.

In these conditions, the adaptation strategies of European winemakers, according to the publication, should include:

– Transition to organic and sustainable production;

– focus on wines with high added value;

– development of wine tourism and direct sales;

– investment in more northern regions where the climate is becoming more favorable.

In fact, the industry is not experiencing a demand crisis as such, but a transformation of the consumption model. The mass segment is shrinking, while the premium segment retains its margins.

In this context, 2026 is likely to be a year of optimization for European winemakers: less volume, higher quality and a focus on exports.



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