By Sybille de La Hamaide
PARIS – Global wine production and consumption fell in 2024 to their lowest in decades, as extreme weather and high prices weighed on the sector, the International Organisation of Vine and Wine, known as the OIV, said on Tuesday.
Adding to the challenges, wine producers around the world are under threat from tariffs for sales into the United States, the world’s largest importer of wine by value.
Wine consumption fell 3.3% globally to an estimated 214 million hectolitres, the lowest since 1961, as inflation and reduced consumer spending power eroded demand.
Generational changes in consumer behaviour and a fall in Chinese consumption, once a major driver, have also played their part in reducing wine drinking since 2018, the OIV said.
Global wine production dropped 4.8% to 226 million hectolitres, the lowest level in over 60 years and below the OIV’s initial estimate of between 227 mhl and 235 mhl projected in November last year.
A hectolitre is the equivalent of 133 standard wine bottles.
As in 2023, reduced output, particularly in Europe and parts of the Southern Hemisphere, was caused by adverse weather and disease, OIV Director General John Barker told reporters.
The surface area of vineyards contracted by 0.6% to 7.1 million hectares in 2024, the fourth consecutive year of decline. The reduction reflects ongoing structural changes, including the removal of vineyards, to grow grapes for wine and other products, in both hemispheres.
Among the seven countries with the largest areas of vineyards in the world, only Italy, the largest wine exporter by volume, recorded positive growth – at 0.8%.
Despite the reduced volumes, higher average prices supported the market in value terms.
International wine trade was at its lowest level in volume since 2010, pressured by high prices and weakened demand, but it grew in value as premium segments proved more resilient.
Exports totalled 99.8 million hectolitres, matching 2023 levels but falling 5% below the five-year average. Export value increased to 35.9 billion euros ($38.9 billion), driven by stable record-high prices averaging 3.60 euro per litre.
Of this, wine import value in the United States totalled 6.3 billion euros last year, up 1.6% on 2023, far ahead of the United Kingdom at 4.6 billion euros and Germany at 2.5 billion.
(Reporting by Sybille de La Hamaide; editing by Barbara Lewis)
Comments