Premiumisation Plateau? The Shifting Price Elasticity of Global Consumers

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For more than a decade, premiumisation has been one of the strongest value drivers in the global wine industry. As overall volumes stagnated or declined, producers relied on consumers’ willingness to trade up, especially in the mid-premium segment ranging roughly from $15 to $30 per bottle. However, recent market data suggests that this dynamic is entering a more complex phase. Inflationary pressure, changing consumption habits and increased price awareness are reshaping price elasticity, particularly in the very segment that once felt most resilient.

Global consumption trends provide the first signal of this shift. According to Decanter, worldwide wine consumption fell by 3.3% in 2024, reaching its lowest level in over sixty years, largely due to inflation, reducing discretionary spending across major markets.[1]

This contract does not indicate a collapse of premium demand, but it does highlight a structural change in consumer behavior. Research by IWSR shows that consumers are increasingly drinking less alcohol overall, while becoming more selective about what they buy and when they buy it. Rather than abandoning premium products, many consumers are reassessing whether a higher price is truly justified by perceived value.[2] The consequence is a noticeable increase in price sensitivity within the mid-premium tier. While high-end luxury wines often remain protected by scarcity, brand equity and affluent demand, and entry-level products benefit from affordability, the middle segment faces greater pressure. Consumers in this range compare alternatives more actively and are quicker to question price increases that are not clearly supported by differentiation.

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Industry data confirms this slowdown. IWSR reports indicate that premium wine value growth in 2024 was weaker than in 2023, signaling a deceleration rather than continued acceleration of the premiumization trend. This suggests that premium positioning alone is no longer sufficient to sustain growth without reinforcing perceived value. At the same time, the long-term outlook for premium wine remains positive. Market research from Data Bridge Market Research estimates that the global premium wine market, valued at over USD 46 billion in 2024, is expected to continue growing through 2032. This growth, however, is expected to be more selective and value-driven rather than volume-led.[3]

What has changed, therefore, is not the appetite for quality, but the definition of what makes a wine worth its price. Consumers increasingly expect clarity on origin, production methods, sustainability commitments, and brand identity. In this environment, storytelling becomes a strategic economic lever rather than a marketing accessory. When price increases are not supported by a strong narrative and tangible differentiation, consumers are more likely to reduce purchase frequency, trade sideways, or explore competing categories such as premium beer, spirits or ready-to-drink products.

From a pricing perspective, this shift calls for more dynamic and data-driven strategies. Harvard Business Review notes that effective real-time pricing depends on systematically measuring elasticity by varying prices and tracking how customers react, rather than relying on static assumptions.[4]

For wineries, this may involve refining price architectures by market, channel and format, rethinking pack sizes, or reinforcing direct-to-consumer strategies where value communication can be more controlled. The objective is not to lower prices indiscriminately, but to ensure that price aligns with what consumers genuinely perceive as valuable.

In conclusion, premiumization is not disappearing, but it is evolving. The era in which higher prices automatically signaled higher value is fading. In 2025, success in the premium wine segment will depend on the ability to combine smart pricing, credible storytelling and a deep understanding of shifting consumer expectations. Brands that adapt to this new elasticity landscape will be better positioned to maintain relevance and profitability in an increasingly selective global market.

[1] Ruitenberg R., Global wine consumption falls to six-decade low as inflation bites, URL: decanter.com (04.16.2025)

[2] IWSR, Five Key Trends Shifting the Beverage Alcohol Market in 2025, URL: theiwsr.com

[3] Gusain P., Global Premium Wine Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032, URL: databridgemarketresearch.com (05.2025)

[4] Fisher M., Gallino S., Li J., A step by step guide to real time pricing., URL: hbr.org (09.2023)