1. Home
2. News

Global wine consumption hits 27-year low amid inflation

Last year saw wine consumption decline by 2.6%, falling to an estimated 221m hl. This downward trend marks the second consecutive year of decline. John Barker, director general of OIV, highlighted the profound impact of inflation on consumer behaviour during an online press conference last week.

“Inflation has been a key factor in the past two years, because it has significantly increased production and distribution costs, while also reducing consumers’ purchasing power,” said John Barker, OIV director general.

• Read more: Bierzo producer launches campaign to save old vines
  

Amidst the decline, a few key markets displayed resilience, with Spain and Russia bucking the trend with consumption upticks of 1.7% and 3%, respectively. However, the overarching narrative painted a bleak picture, with the five largest markets, including the US and France, witnessing declines in wine consumption.

However, Barker (pictured) cautioned against premature conclusions – preliminary data suggests that distributors in key markets are trimming imports, opting to deplete existing stocks to navigate through inflationary pressures, which could skew apparent consumption calculations.

China, once a burgeoning wine market, witnessed a dramatic downturn in wine consumption, with volumes in 2023 decreasing to less than half of those recorded four years earlier. Demographic shifts and evolving lifestyles have also likely contributed to an underlying trend of declining wine consumption globally. 

On the production front, the wine industry faced daunting challenges too, with global production plummeting by 9.6% to 237.3m hl in 2023. Adverse climatic conditions, ranging from early frost to heavy rainfall and drought, wreaked havoc on grape harvests across major wine-producing regions.

Within the European Union (EU), vinified production witnessed a sharp decline of 10.6%, reaching 144.5m hl. However, France, the world's leading wine producer, recorded an estimated volume of 48m hl, marking a 4.4% increase from 2022. Conversely, Italy grappled with historically low production levels, experiencing a notable 23.2% decrease, while Spain faced its lowest production since 1995, with an output of 28.3m hl.

As for exports, the global wine trade witnessed a 4.7% decline in value, amounting to €36bn. However, higher prices partly offset lower shipments, with the average wine-export price reaching a record high of €3.62 per litre.

Notably, sparkling wines emerged as a resilient category, with the value of shipments increasing by 1%, despite a 4% decline in volumes. Giorgio Delgrosso, head of statistics at OIV, attributed this growth to the category’s notable expansion since 2002, with sparkling wines like Prosecco and Champagne leading the charge.

The UK, the second largest import market, saw its imports decrease in both volume and value. The import volume dropped to 12.3mhl, a decrease of 5.1% compared to 2022, while the value fell to €4.7bn, a decrease of 3.3%. Bulk wine was the category that decreased the most in value (-14%), while sparkling wine increased by 2% in value despite a decline of 3% in volume, a figure which coincides with ever-growing sparkling wine production rates in the UK. 

Looking ahead, the Southern Hemisphere anticipates a potential 5% increase in wine production in 2024, with Australia and Argentina poised for significant volume upswings. However, these figures remain subject to revision as the year unfolds the OIV said.

• EU
• OIV
• Giorgio Delgrosso
• 2023 harvest
• John Barker