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Although 2023 saw a decline in online wine sales following unprecedented growth during the pandemic, recent sales numbers suggest this shift is more of a market correction rather than a sign of long-term decline.

According to industry experts, the future of wine ecommerce lies in brands’ ability to understand and adapt to the evolving behaviors and preferences of consumers, especially in the context of varied market dynamics across regions.

“Technology and ecommerce offer a huge number of benefits in terms of the wine purchasing experience,” Guy Wolfe, head of ecommerce insights at beverage industry research firm IWSR, tells Forbes. “Consumers can shop a much wider range of products on the near-limitless ‘digital shelf,’ while having access to greater information about the product or brand and being able to compare prices, reviews by other purchasers and so on.”

Wolfe highlights that even with a recent dip, global online wine sales in 2023 continued to be nearly 40% above the levels seen before the pandemic, totaling around $11 billion.

“The relatively weaker recent figures for wine primarily relate to its established presence in the online market—about 7% of wine sales occur online, in contrast to just 4% for spirits and 2% for beer,” Wolfe observes.

This established market presence, although advantageous during the pandemic, has also led to wine ecommerce experiencing more significant challenges as other categories of alcohol start to close the gap.

In order to recapture market share in the online alcohol domain, Wolfe advises wine brands to concentrate on a deep understanding of their customers and to tailor their digital strategies effectively.

“Understanding the consumer base, their online preferences, and notably, how these preferences shift across different e-commerce channels and platforms is fundamental,” he suggests.

Creating digital content that caters to specific consumer demands allows brands to enhance their influence and worth in a competitive digital marketplace.

Millennials in particular are key to the growth of online wine sales in new markets. Wolfe points out that this demographic is highly active in online shopping, usually conducting thorough research before completing a purchase.

“Producing high-quality digital content tailored for various platforms is crucial in drawing millennials to a brand, and it tends to yield a significant return on investment,” he comments.

This generation’s shopping preferences are shaped by their alignment with brand values, emphasizing the importance for wine brands to communicate their identity clearly and consistently across digital platforms.

The analysis highlights distinct variances in online wine-buying habits across different regions, suggesting the need for market-specific strategies.

In established markets like Australia and the United Kingdom, major ecommerce websites such as supermarkets and specialty stores, which primarily serve an older demographic, predominantly facilitate online wine purchases.

In contrast, emerging markets show a synergy between growing wine consumption and ecommerce, characterized by a younger, ambitious consumer demographic that frequently shops online using mobile apps and social media platforms.

“In emerging markets, the wine market has developed in tandem with the ecommerce channel and is being driven by younger demographic groups often part of a rising middle class,” Wolfe says.

Therefore, a one-size-fits-all approach is unlikely to succeed, and brands must develop distinct strategies for different consumer groups and markets.

The rise of rapid delivery services, in particular, has also transformed consumer expectations, particularly among younger generations. In markets where quick commerce platforms are prevalent, such as Brazil, rapid delivery is a key driver of ecommerce growth.

However, the logistics of delivering wine quickly present challenges due to the lower value-to-weight ratio compared to other alcohol categories like spirits, and delivery costs can quickly add up.

“It tends to be less of an issue in regions with relatively low labor costs, such as Latin America, hence greater importance of quick commerce here,” Wolfe explains. Rather, he continues, this challenge is compounded in markets with higher labor costs, such as the United States, where concerns over alcohol access by minors have also impeded the development of rapid delivery services.

“Now IWSR consumer research indicates that Millennials and legal-aged Gen Z consumers in particular overwhelmingly expect (and are prepared to pay for) the added convenience of rapid delivery—including for wine,” he says.

To thrive in the evolving ecommerce landscape, wine brands must leverage technology to enhance the online experience. Wolfe emphasizes the importance of creating a seamless and consistent consumer experience across all touchpoints, from digital platforms to in-person interactions such as winery tasting rooms.

“If brand owners are not following up that experience with tailored digital marketing, an online club/subscription service, a strong social media presence, etc.,” Wolfe says, “then they are without doubt missing out on a significant opportunity to grow brand loyalty and ultimately sales.”

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