According to IWSR[1], global wine consumption is declining, spurred by the decline in wine drinking population and moderation trends in top markets. In many mature markets, including Australia, older drinkers dominate the wine category as younger generations are not entering it at the same rate as previous generations.
Millennials, Gen Z, and Gen Alpha will account for just under 50 per cent of the Australian adult population by 2027 – just two years away[2]. Despite not drinking as much as their older counterparts, IWSR has identified Millennials as a value opportunity as they enter their prime earning years.
This Market Bulletin explores whether wine still falls within the younger generations’ taste palate and unpacks their category preferences using data from Growth Scope, the market leader in occasion research in the Australian market.
How does wine rank among other alcohol categories?
Growth Scope conducts online surveys of consumers. Once a month, consumers can answer questions about their most recent consumption occasion within that month. Over one year, 15,000 occasions are captured across the full spectrum of occasion types (e.g. celebrations, seasons).
Figure 1 shows the Growth Scope results for alcohol beverage categories by generation for the last consumption occasion in the 2025 financial year. Each group adds to more than 100 per cent as more than one category may be chosen per occasion.
Beer and spirits make up the majority of alcohol chosen by the younger generation. However, between 35 to 41 per cent of these younger demographics chose to drink wine, placing wine in third place ahead of RTDs and cider.
Figure 1 – Category preferences by generation at the end of the 2025 financial year
Source: Growth Scope
Are the younger generations drinking more or less wine over time?
Although other alcohol categories rank higher than wine in terms of preference, Figure 2 shows there was an increase in the percentage of Gen Z[3] choosing to consume wine in the same Growth Scope survey. In the 2021 financial year results, 29 per cent of Gen Z drank wine, but this increased to 35 per cent in the 2025 results.
Some of this increase may be attributed to wine taking share from spirits (down 5 percentage points), RTDs (down 2 percentage points) and cider (down 3 percentage points), categories that have declined over the same period.
Over the next five years, more of the Gen Z population will reach the legal drinking age, increasing the opportunity for wine to take more share as the number of drinkers grows and the generation matures.
Figure 2 – Share of younger generations’ alcohol consumption by category from financial year 2021 to 2025
Source: Growth Scope
Although a higher percentage of Millennials reported drinking wine in the 2025 financial year survey compared to Gen Z, the percentage of Millennials who drank wine decreased over the past five years (down 7–8 percentage points). In contrast, the percentage of Millennials who drank spirits (up 3–4 percentage points) and RTDs (up 3–5 percentage points) increased over the past five years.
Figure 3 depicts wine only responses to the Growth Scope survey and shows that the share of wine consumption occasions for younger generations has grown from 27 per cent to 30 per cent, driven by Gen Z. This is also aligned with insight from IWSR[4], that Gen Z’s alcohol consumption has increased in the past year while more Gen X were found to be moderating.
Figure 3 – Share of wine consumption occasions by generation from financial year 2021 to 2025
Source: Growth Scope
The frequency[5] (up 1.6 occasions) and intensity[6] (up 0.6 serves) of wine consumption occasions by Gen Z has also increased over the past five years, while it had mostly decreased for all other generations. Although Gen Z consumed wine the least often among all generations, they drank more serves (3.3 serves) of wine on average than Traditionalists (2.2 serves) – the generation that drank wine the most often.
Do the top varietals differ for younger consumers?
According to Endeavour Group and IWSR, Sauvignon Blanc and Shiraz are the top varieties consumed and sold in the domestic market. The Endeavour Group report[7] states that Shiraz and Sauvignon Blanc are Australia’s dominant sales varieties, representing more than 25 per cent of all wine sales. IWSR 2024 survey data also indicates that 50 per cent of regular wine drinkers in Australia drank Sauvignon Blanc in the past 6 months, while 46 per cent drank Shiraz.
Interestingly, data from Growth Scope shows that Sauvignon Blanc and Shiraz are also the top varietals consumed by the younger generation. However, while older generations over index in these two varieties, younger generation’s preferences are more evenly distributed across varieties, showing their openness to experiment.
Figure 4 details the Growth Scope data on varieties/styles where the younger generations make up a larger proportion of consumption occasions:
- dessert wine (62 per cent)
- Champagne (56 per cent)
- sparkling red / rosé (51 per cent)
- rosé (48 per cent)
- Pinot Noir (43 per cent)
- Moscato (41 per cent)
- fortified wine (40 per cent), and
- Prosecco (37 per cent).
This is aligned with the findings of the younger generation’s preferences in Endeavour Group’s State of the Grapes report (August 2025): lighter style, sparkling and sweeter wines.
Figure 4 – Share of wine subcategory by generation in financial year 2025
Source: Growth Scope
What are the top subcategories for other types of alcohol?
In the Growth Scope financial year 2025 survey, more than half of Millennials (and nearly half of Gen Z) drank beer. About one third of Gen Z and Millennials chose classic full strength Australian beer on their last consumption occasion out of all alcohol categories, the most popular type of beer. Second place in the beer category is mid-strength beer for both Gen Z and Millennials. According to Endeavour Group, this highlights the mindful consumption trend among younger drinkers looking for lighter-alcohol choices.
Within the spirits category, Gen Z and younger Millennials over-index in vodka, with 19 per cent of Gen Z and 10 per cent of younger Millennials consuming vodka in the financial year 2025 Growth Scope results[8]. A higher percentage of Gen Z also chose to consume RTD spirits – Light, cocktails, tequila and shots on their last consumption occasion than other generations. Whisky / scotch (10 per cent) has the highest penetration[9] among older Millennials of any spirit subcategory, followed by bourbon (8 per cent) and vodka (7 per cent).
Other subcategories where Gen Z and young Millennials over index compared to older generations, are Apple Cider, with 8 per cent of both Gen Z and younger Millennials reported drinking it in their last consumption occasion, followed by alcoholic ginger beer and alcoholic seltzer with less than 5 per cent each. For comparison, about the same percentage of Gen Z drank Prosecco as alcoholic seltzer.
Summary
Despite previous stereotypes, the younger generation, particularly Gen Z, is consuming more wine over time. The percentage of Millennials who drank wine in their last consumption occasion has decreased slightly in the 2025 financial year compared to prior years. In terms of wine preferences, younger generations possess the same varietal preferences as the population overall. However, they have a wider taste palate and are more willing to experiment with different wine styles.
- 1. IWSR Global Wine Trends – Executive Summary 2024
- 2. Endeavour Group Insights Report – December 2024 (Distilled Edition 16)
- 3. Individuals born between 1997 and 2012 or currently ages 13 to 28 years old
- 4. Moderation trends around the world – IWSR - Drinks Retailing
- 5. Frequency is defined as the average number of similar occasions per month
- 6. Intensity is defined as the average number of serves consumed per occasion
- 7. Endeavour Group Insights Report – December 2024 (Distilled Edition 16)
- 8. More than one category may be chosen, resulting in each generation adding to more than 100 per cent
- 9. Penetration is defined as the proportion of a generation who chose a subcategory in their last occasion