Global wine sales have hit an all-time low, falling by 3.3% in 2024 to 214.2 million hectolitres, marking the lowest sales figure since 1961.
Global Wine Sales Hit Lowest Levels in Over 60 Years
The International Organisation of Vine and Wine (OIV) has reported that global wine sales fell by 3.3% in 2024 to 214.2 million hectolitres, marking the lowest sales figure since ‘1961’.
Factors Contributing to Decline
According to Giorgio Delgrosso, statistics chief at the OIV, the decline can be attributed to a ‘perfect storm‘ of health concerns and economic factors driving down consumption in many countries. The industry has also been affected by environmental extremes such as above-average rainfall in some regions and droughts in others.
Economic Pressures
The consumer is now paying about 30% more for a bottle of wine compared to 2019-20, with overall consumption falling by 12% since then. In the United States, the world’s top wine market, consumption fell 5.8% to 33.3 million hectolitres.
The US wine market has experienced significant growth in recent years, driven by increasing consumer demand for premium and craft wines.
According to the Wine Market Council, US wine consumption rose by 2.5% between 2020 and 2021, with Americans spending an average of $44 per month on wine.
California remains the leading wine-producing state, accounting for over 85% of domestic production.
The market is also seeing a shift towards sustainable and eco-friendly winemaking practices.
Regional Variations
In Europe, which accounts for nearly half of worldwide sales, consumption fell 2.8% last year. In France, one of the key global producers, 3.6% less wine was consumed last year. However, Spain and Portugal were among the rare markets where consumption increased.
Environmental Impact
Production has also been hit by environmental extremes such as above-average rainfall in some regions and droughts in others. Italy, which is the world’s top producer with 44 million hectolitres, saw its output fall to its lowest level since ‘1957’ due to these factors.
Environmental extremes refer to conditions that are beyond the normal range of natural variability, such as extreme 'temperatures' , droughts, and floods.
These events can have devastating effects on ecosystems, human health, and the economy.
According to a study by the United Nations, 75% of natural disasters between 1995 and 2015 were caused by environmental extremes.
Rising global temperatures are also leading to more frequent and intense 'extreme weather events' .
Understanding these phenomena is crucial for developing effective strategies to mitigate their impact.
Italy is renowned for its rich wine-making heritage, with a history dating back over 2,000 years.
The country's unique climate and soil conditions create an ideal environment for growing a diverse range of grape varieties.
With over 20 regions producing wine, Italy is the world's fourth-largest wine producer.
The most notable regions include Tuscany, Piedmont, and Veneto, which produce iconic wines such as Chianti, Barolo, and Prosecco.
Italian wine production has been influenced by various cultures, including the ancient Greeks and Romans, resulting in a distinctive style that is both traditional and innovative.
Outlook for the Industry
The OIV cannot predict if consumption will take off again, and industry players such as Nicolas, a French chain of wine shops, say there is a ‘generational‘ change in drinking habits. However, they note that people are still drinking less but better, leading them to be ready to spend more.
Tariffs and Their Impact
The OIV has also raised concerns about the impact of US tariffs on the industry. The tariffs ordered by the ‘US President, Donald Trump‘, could become ‘another bomb‘ for the wine industry.
- theguardian.com | In the red: global wine sales fall to lowest levels since 1961
