Glass half full: the changing landscape of vineyards and wine
Our Head of International Vineyard Services looks at the forces reshaping the global wine production map – and creating opportunities for forward-looking winemakers and investors.
2025’s edition of The Wealth Report painted a sobering picture of the challenges facing the wine industry.
A year on, drinking habits may be changing; but progressive producers are taking advantage of the shift.
With challenge comes opportunity. Here we outline five trends impacting the global wine industry – and highlight some of the regions best placed to benefit, while experts from across the division share their local perspectives.
Climate change prompts lighter wines
Climate change is having a profound effect on some of Europe’s traditional grape-growing regions, reducing yields and altering grape quality.
Growers are recalibrating varieties and adopting new growing and winemaking techniques, while production is shifting to cool-climate wine regions or to areas where rising average temperatures have made wine production now viable. Grapes grown in cooler conditions also produce lighter wine that many consumers are switching to.
Lighter, more tension-driven reds and vibrant, precise whites – combined with the effects of climate change – are reshaping the opportunity map.
Nicolas Parmentier, Head of Vineyard Transactions
Janssens Immobilier Knight Frank
Regions to watch: climate change
- Germany – Mosel, Rheingau
- France – Loire Valley, Limoux
- Italy – Alto Adige, Friuli
- US – Willamette Valley, Oregon
- Chile – coastal and Andes foothills
- Australasia – Tasmania, Central Otago, Marlborough
- England – Sussex, Kent, Essex
A move to premium production
Global wine consumption may be falling, but values are rising with drinkers choosing higher-quality, artisanal, and terroir-specific wines. Premium segments often grow faster in value than volume, showing that people are willing to pay more for quality and authenticity.
This is a competitive segment of the market, and vineyards with a strong narrative focusing on provenance and craftsmanship are best placed to differentiate themselves.
In Tuscany we’re seeing a big change towards quality over quantity, organic over ordinary, and a movement towards better growing areas.
Bill Thomson, Chairman
Knight Frank Italian Network
Regions to watch: premium production
- France – Champagne, Burgundy, Bordeaux
- US – Napa Valley (California), Willamette Valley (Oregon)
- Italy – Piedmont (Barolo/Barbaresco), Montalcino, Bolgheri
- Australia – Barossa Valley, Eden Valley
A generational shift in tastes
Some of the biggest wine consumption shifts are driven by a greater focus on health and wellbeing, combined with evolving generational tastes.
Younger audiences are less bound to traditional wine culture than previous generations. They favour lighter styles, including chillable reds, novel varieties, and approachable flavour profiles. To create wines to satisfy changing palates, areas of Europe once considered peripheral for premium winemakers are now ascending.
Our winemakers struggle with oversupply and the shift in consumer tastes towards lighter wines. But those who are pursuing premiumisation strategies and offering unique provenance and storytelling, will thrive and weather the storm.
Jason Oster, Agribusiness
Knight Frank Australia
Regions to watch: changing tastes
- France – Loire Valley (Anjou, Saumur, Touraine)
- Germany – Mosel, Rheingau, Pfalz
- Austria – Kamptalm Kremstal, Wachau, Burgenland (for reds)
- Portugal – Atlantic zones (Vinho Verde, Bairrada, Lisboa)
- Italy – Alto Adige, Friuli
- UK – all areas
A growing search for sustainability
Ethical consumption is now a major purchasing motivation, particularly for younger drinkers.
Socially conscious consumers favour organic, biodynamic, carbon-neutral, regenerative and low-impact wines as they seek ways to reduce their own carbon footprints. As sustainability moves from being a brand differentiator to a baseline requirement, wine producers must now offer credible evidence rather than just claims if they want to compound their brand equity.
New Zealand wine growers are leading the way in sustainability, with 98% of all producing vineyard areas now certified under the Sustainable Winegrowing New Zealand programme.
Kurt Lindsay, Viticulture Specialists
Bayleys
Regions to watch: sustainability
- New Zealand – all areas
- US – Willamette Valley (Oregon)
- France – Loire Valley, Alsace, Languedoc-Roussillon
- Chile – Itata, Limarí, Biobío
- South Africa – Cape South Coast
The rise of experiential consumption
Experiential consumption is moving beyond wine tourism, and premium, personalised experiences are taking over from “habit” drinking.
But wine is just one of the things competing for consumers’ experiential spend. Regions delivering immersive hospitality, education and place-based storytelling will capture margin and loyalty, even as routine consumption declines.
The UK is innovating beyond traditional sparkling wines, with forward-thinking producers testing new products and packaging.
Will Banham
Knight Frank UK Viticulture team
Regions to watch: experiential consumption
- US – Napa Valley, California
- France – Champagne, Provence
- Italy – Tuscany (Chianti Classico, Montalcino)
- Argentina – Mendoza, Uco Valley
- South Africa – Stellenbosch and Cape South Coast
- Georgia – Kakheti, Kartli, Imereti
Building a vineyard portfolio?
Knight Frank’s Global Vineyard Index offers a distinctive perspective on the price of vineyard land around the world. Access the full report to find out more.
