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Boomers place 60% of online wine orders in major markets
You might assume that its Millennials and Gen Zs who are shopping for drinks online, but it’s increasingly older consumers that are clicking for wine, the drinks business can exclusively reveal.
Although Millennial consumers (those born between 1981 and 1996) will be crucial to the future of wine e-commerce, “particularly in emerging wine markets”, they are not the key age group responsible for online wine purchases right now, according to the IWSR, which provides data and insights for the beverage alcohol industry.
Speaking to db, Guy Wolfe, head of e-commerce insights for IWSR, revealed that it’s actually older drinkers that are dominating online alcohol purchases in wealthier economies, driven by their growing familiarity with digital tech.
“In Australia, Italy, France, the UK and Spain, for example, Boomers and Gen X now make up more than 60% of online wine purchasers,” Wolfe says.
Boomers are those born between 1946 to 1964, and so currently aged 60- 78 years old, while Gen X were born between 1965 and 1980, and currently aged 44 to 59 years old.
However, there are a few markets in which younger consumers are in the driver’s seat of online sales.
“Millennials and legal-drinking-aged Gen Z account for the majority of buyers in China (80%) and Brazil (64%),” says Wolfe.
The US, on the other hand, sits right in the middle with 43% of online wine buyers belonging to Millennials, while the remaining 57% of ecommerce sales made by Boomer and Gen X.
The information may prove useful for drinks brands when determining who to market their digital campaigns towards. And indeed, in relation to which wines and retail price brackets they choose to prioritise online.
Online wine sales, overall, are sliding globally.
Last week, online retailer Naked Wines revealed total sales of £290 million in its full year results for the 52 weeks ended 1 April 2024, down from £354 million the year before. Repeat customers contributed £65.3 million to the 2024 total, dropping from £86.5 million in repeat custom in 2023.
Naked chairman Rowan Gormley said in a statement: “I am pleased to report that the company is in much better shape than it was a year ago, and that we have
made substantial progress in returning Naked to profitable growth”, though admitted that “this is not immediately apparent from the trading results which, although in line with expectations, reflect the company we were, rather than the company we are starting to become.”
If online sales are to turn a corner, retailers will need to stick to premium products. According to Solos ShipCompliant and WinesBusiness Analytics in the US, the volume of wines priced less than US$30 per bottle has seen a 34.8% decline in DTC shipments since 2020, while sales of bottles priced at US$100 or more have increased by by 5.6% in the last two years (since 2022).
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