Mintel data shows wine consumption in the UK fell 2% last year, or by 30m litres, the equivalent of 40m bottles.
The drop in wine consumption mirrors recent Euromonitor data that showed beer sales fell 5% in 2008 while sales of non-alcoholic beers increased 10%.
Mintel says public concern over excessive drinking and its effects on health and duty increases have stifled sales.
The observation comes as Office of National Statistics figures showed that so-called “binge drinking” among young men dropped by 8% among 16-24 year-old males.
The Government, which has launched several campaigns and measures in recent years to curb irresponsible drinking, will take some comfort from the figures.
Last month, the Government revealed proposals for its mandatory code of practice on alcohol, which includes a crack down on on-trade offers including “all you can drink for £10” promotions.
However, the ONS data shows there is still work to be done among young women with the number now drinking more than the recommended limits similar to men.