Demand grows for alternative wines despite barriers

Younger drinkers are driving growth in alternative wines, but limited choice, price concerns and weak engagement among older consumers continue to hold the category back, according to new IWSR research.

Demand for alternative wines — including natural, organic and sustainably produced products — is rising among regular wine drinkers, particularly younger consumers, but barriers around availability, awareness and perceptions of value continue to constrain growth.

According to IWSR’s Opportunities in sustainable, organic and alternative wine 2025 report, Gen Z and Millennial consumers are emerging as the key growth drivers of the category across five core markets and 10 secondary destinations. However, awareness and purchase interest remain low among older age groups.

Consumer engagement with alternative wines has increased across key markets, driven by sustainability and health motivations. IWSR data shows purchases of alternative wines have risen significantly since 2023 across most sub-categories in Australia, Canada, the UK and the US. China continues to record the highest proportion of wine drinkers with a strong connection to sustainability, although attitudes have levelled off compared with 2023.

Organic wine has continued to perform well, with volumes growing across most markets over the past five years, although growth has slowed recently. Mature markets such as France and Germany remain the largest by volume, but are expanding more slowly than Australia, where organic wine recorded a 2019-24 volume CAGR of +14%. Growth was also reported in Canada (+2%) and the UK (+1%) over the same period.

Natural wine leads opportunity index

According to IWSR’s Opportunity Index — which measures the strongest market opportunities for alternative wine categories, weighted by the size of each country’s wine-drinking population — natural wine remains the leading opportunity. The category has seen particularly strong performances in China, Australia and the UK.

Organic wine retained second place in the index, supported by stable awareness levels and increasing engagement in key markets. China recorded the highest conversion from awareness to purchase, while Australia, the UK and the US showed improving consumer perceptions.

Sustainably produced wine is also gaining momentum, especially in markets where sustainability attitudes have strengthened, including the UK. Similar trends were identified in China, the US, Australia, Canada, South Korea, New Zealand, Japan and Denmark.

“The global market for sustainable, organic and alternative wines continues to mature, driven primarily by younger wine drinkers, whose strong alignment with sustainability, healthy lifestyles and ethical consumption is reshaping demand,” said Dan Mettyear, Head of Research – EMEA.

“However, growth is constrained by several barriers. Across markets, consumers report limited choice and availability in both the off- and on-trade as the biggest obstacles to buying alternative wines. Price, perceived value and a preference for familiar, more traditional options also remain significant challenges.”

Older consumers remain difficult to engage

Across the five key markets, sustainability concerns continue to resonate most strongly with Millennials and Gen Z consumers in Australia, the US, China, Canada and the UK.

According to IWSR consumer research, at least half of younger regular wine drinkers in these five countries reported a high connection to sustainability, while at least 64% said they had a high connection to alternative wines.

By comparison, Boomers recorded significantly lower connection rates in Australia, the US, Canada and the UK, particularly when it came to alternative wines.

“Engaging older consumers remains critical for sustaining long-term growth, as they represent the largest age group in many mature markets,” Mettyear added.

“Boomers tend to show a lower connection to sustainability and limited interest in alternative wines, remaining unconvinced of their value. Increasing awareness and improving penetration among these older age groups remains an important focus for the future of the category.”

Limited availability was identified as one of the biggest barriers to purchase across the three main alternative wine segments — organic, natural and sustainably produced wines.

Across the five core markets, between 17% and 23% of regular wine drinkers said there was not enough choice in retail or the on-trade, according to IWSR consumer research. Between 18% and 23% said the wines were too expensive, while 31% across all three categories said they preferred to stick with wines they already knew and trusted.

“Consumers report that organic, natural and sustainable wines are difficult to find, both in retail and in bars and restaurants, due to limited availability and lack of choice,” said Mettyear. “Sustainably produced wine in particular is consistently noted as having limited options and availability across all five core markets.”

Health perceptions boost long-term outlook

Despite the challenges, IWSR said the long-term outlook for alternative wines remains positive, particularly as younger consumers continue to broaden their wine repertoires and increasingly associate alternative wines with health and wellbeing.

Other alternative wine styles are also improving their positions within the Opportunity Index. Orange wine has climbed two places since 2024, overtaking pét nat, while biodynamic wine has improved compared with 2021. However, both still rank relatively low overall, sitting ninth and 10th respectively in the index.

“Despite the constraints impacting alternative wine’s performance, the category’s long-term outlook remains positive as health associations strengthen, and younger consumers continue expanding their alternative wine repertoires,” said Mettyear.

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