In the current socio-economic landscape, we are witnessing a growing polarization of consumption in various sectors, from tourism to travel, from holidays to experiences in general.
The same destination, the same experience or the same travel route can be enjoyed at different levels of quality performance: easy, smart, premium.
Even the same wine product can be enjoyed at different levels of involvement and experience. This trend reflects a divergence in people’s preferences, which are oriented towards two extremes: economic options, accessible to many people and luxury products or experiences reserved for those who choose to overinvest on certain occasions.
This phenomenon represents a natural evolution of the market, responding to the different needs and aspirations of people.
It is important to understand that people can easily migrate from one extreme to the other: a person can prefer easy consumption for some occasions, experiences or products but opt for a smart or premium experience in other situations, according to a very personal order of preferences. Often regardless of the socio-economic level of belonging. Both ends of this polarization find their audience and their intrinsic value that justify the choice in the eyes of those who make it.
The Bibitization of Wine
Wine/soft drink has seen significant growth thanks to several elements:
- Affordability: With affordable prices, these wines appeal to a wide range of people, from enthusiasts looking for the best value for their money to newbies taking their first steps into the world of wine.
- Widespread Distribution: Large-scale retail trade (GDO) has made these products easily available, with supermarkets and retail stores offering a wide range of options.
- Marketing and Branding: Wineries have invested heavily in marketing and branding, creating eye-catching labels and telling stories that resonate with the general public.
- Packaging Innovation: One of the most exciting developments in the wine/beverage industry is the evolution of packaging. This has led to greater accessibility: think of Canned Wines: which are gaining popularity due to their convenience and low cost. These formats are ideal for everyday consumption and for informal occasions, such as picnics and parties.
- Product Innovation: Low Alcohol and Zero Alcohol Wine: Growing health awareness has led to a demand for low-alcohol or alcohol-free wines. These products offer an alternative to those who wish to enjoy wine without the effects of alcohol, making wine an easier and more accessible choice even for those who are less tolerant to the effects of alcohol.
The Premiumization of Wine
On the other end of the spectrum, we find a niche market geared towards exclusive and luxury wines:
- Quality and Prestige: Luxury labels are synonymous with superior quality, often linked to hyper-precise and ultra-traditional winemaking techniques and exclusive terroirs. These wines are perceived as products of art, with a unique identity and long-standing stories.
- Exclusivity and Rarity: Luxury wines are produced in limited quantities, increasing their perceived value. They can be in large formats and dressed as works of art. Rarity becomes a determining factor, with historic vintages and special productions reaching exorbitant figures at international auctions.
- Consumption Experience: The consumption of luxury wines is often linked to sensory and emotional experiences. From tasting in historic cellars, starred restaurants, to pairing with exclusive events and moments, these wines offer more than just a glass, but a real journey through tradition, history, and culture that make that product something unique and unrepeatable.
Driving Factors of Polarization
Two main factors have driven this polarization:
- Evolution of Tastes and Preferences: Globalization has democratized access to knowledge and culture of wine and has also required a simplification of communication codes and proposals. Allowing more individuals to appreciate a wide range of wines. However, this has also created an elite of connoisseurs willing to pay high prices for exclusive, complex products, strongly characterized by personality and tied to a precise identity profile.
- Technological Innovation: Technology has improved winemaking techniques, making high-quality production possible even in lower price ranges. At the same time, traditional and sustainable techniques have increased the value of luxury wines.
Conclusion: A constantly evolving context
In conclusion, the polarization of consumption in the wine sector reflects broader changes in society and in people’s lifestyle, consumption and choice. While budget wines continue to democratize access to wine with innovative packaging solutions and low and zero alcohol options, luxury wines maintain their exclusive appeal and high quality. Understanding these dynamics is essential for those working in the sector, as it provides an indispensable key to developing targeted marketing and production strategies. The diversification of options available on the market not only responds to the different needs of people, but also enriches the entire wine landscape, making it more inclusive and diverse.
There is nothing to fear in this evolution: it is not about seeing “wine” as a univocal concept, but about celebrating the variety of “wines” available, each with its own value and function, whether for everyday consumption or for more special occasions. In this framework, people are free to migrate between different types of consumption, choosing a popular and accessible wine on some occasions and opting for exclusivity and luxury on others, according to their personal preferences and priorities and spending capacity/desire. This understanding allows you to propose your offer in the best and most coherent way, responding precisely to market expectations.