The 2025 State of the U.S. Wine Industry Report by Silicon Valley Bank delivers a candid and data-rich analysis of an industry in flux. Authored by Rob McMillan, the report provides insights into the challenges and opportunities facing wineries, from shifting consumer demographics to economic pressures reshaping market dynamics.

Some key takeaways and predictions:

  • The wine industry is currently undergoing its first demand-driven correction in over 30 years.
  • Total U.S. wine sales in 2024 ended with negative growth, down 1-3% in volume and nearly flat in value, a trend expected to persist in 2025.
  • Tasting room visitation, which has not returned to pre-pandemic levels, will be slightly lower this year as compared to 2024.

Key to the picture is an aging Boomer cohort and younger consumers’ preferences for low-alcohol and alternative beverages. Addressing these generational differences is critical. The report identifies the need to concentrate on marketing and developing new products for the 30-45 age group, virtually all of whom are Millennials. To better engage this group, it’s essential to understand their advertising preferences, priorities, and values.

Millennials are highly active on social media, and it is the leading channel for product discovery for this group. They respond well to authentic content and personal storytelling. Think about showcasing vineyard life, winemaking processes, and eco-friendly practices in video that is quick and digestible. As they move through the customer journey, offer compelling promotions to drive sales – Millennials exhibit a higher propensity than older generations to wait for discounts before making online purchases. Millennials spend considerable time on their mobile devices, so it’s important to make sure that your website is mobile-friendly with quick load times and seamless navigation.

Millennials value rich experiences. To attract them to your winery, host events that are multisensory, like curated food and wine pairings or paint and sip events. Consider incentives to draw them to your tasting room, like waiving tasting room fees for purchases above a certain amount. Millennials also value flexibility – to that end, think about instituting a variable tasting fee structure, and evaluate how flexible your wine club options are.

Albert Einstein once said: “In the middle of every difficulty lies opportunity.” The sky isn’t falling, but the numbers don’t lie – the industry is facing headwinds. But there is opportunity in every challenging time, and this is no exception. Based on current generational shifts and habits, Millennials could help pick up the slack. With the right offerings – and marketing – wineries can drive more sales and loyalty from a group that has decades of buying power ahead of it.