In the years since the COVID-19 pandemic, the global wine industry has entered a state of flux: overall consumption continues to decline, but enthusiastic vinos are purchasing more expensive bottles – a shift which high-end restaurants across the world seem eager to accommodate.
“Post-pandemic, fine wine consumption is focused on quality over quantity, with younger, knowledgeable consumers seeking heritage, authenticity and memorable dining experiences,” said Caroline Meesemaecker, owner and CEO of Wine Services, in the Douglas Elliman (DOUG) Knight Frank Wealth Report.
In 2024, wine consumption fell 12% below the industry’s peak in 2007, while global production continues to decline, according to the Wealth Report.
Both foreign and domestic vineyards were already bracing themselves for the impact of President Donald Trump’s policies. Internationally, there was concern that tariffs would cause a decline in sales, while within the United States farmers worried about the impact of losing much of their labor force due to anti-immigration policies.
Now it seems that European vineyards were correct to anticipate hostility from the Trump administration. Trump’s latest bid to tackle the European Union’s “hostile and abusive” trading practices is to tack new duties on alcohol imports.
The president’s threat was in response to the European Union hiking its duties on imports of American whiskey to 50%.
“If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all wines, champagnes, & alcoholic products coming out of France and other E.U. represented countries,” Trump wrote on his Truth Social, arguing that U.S. businesses will benefit.
But restaurants and wine shops can’t mix and match alcohol the way they might with other products like steel. Ninety-five percent of the world’s bourbon is made in Kentucky. Champagne can only be called champagne if it is from the Champagne region of France.
If enacted, Trump’s new tariffs could result in price hikes for consumers at liquor and grocery stores and put pressure on the restaurant business. Most restaurateurs make 50% to 60% of their profit on wine and drinks.
Despite these obstacles, experts say that demand for the highest quality wine persists – especially in restaurants across the world’s major cities. As high-end restaurants and hotels open up in major cities, the upper echelons of wines are seeing improved sales – even in the face of reduced consumption.
“Restaurants are seeing stable volumes but higher spend per bottle, ushering in a new era of selectivity and luxury,” said Meesemaecker. “The $1,000+ segment is surging with demand from collectors and investors for labels such as La Tâche, Pétrus, Domaine de la Romanée-Conti and Harlan Estate.”
“This polarisation signals a market where affordable luxury and ultra-rare investments are shaping the future, while mid-tier spending remains stagnant,” she continued.
Continue reading to learn more about the top cities for fine wine lovers, based on the Douglas Elliman Knight Frank Wealth Report.
William Gavin contributed reporting.
