Global Wine Industry Hits Six-Decade Lows as Weather Extremes and Consumer Shifts Reshape Market

The International Organisation of Vine and Wine (OIV) reported on April 15, 2025, that global wine production and consumption have dropped to their lowest levels since 1961.

Production declined by 5% from 2023, reaching 226 million hectoliters in 2024. Consumption fell 3.3% to 214 million hectoliters, continuing a downward trend for the third straight year.

Unpredictable and severe weather conditions have caused significant damage to vineyards across both hemispheres. The total area under vine decreased by 0.6% to 7.1 million hectares, marking the fourth year of contraction.

Spain removed 15,000 hectares of vineyards, while France pulled up 5,000 hectares. Italy became the top wine producer with 44 million hectoliters, surpassing France, which suffered a 24% production drop to 36 million hectoliters—its lowest since 1957.

Spain produced 31 million hectoliters, a 9.3% increase from the previous year. Consumer preferences are shifting, especially in established markets. The United States, the largest wine market, saw a 5.8% decrease in consumption to 33.3 million hectoliters.

France’s consumption dropped 3.6% to 23 million hectoliters. China, once a key growth market, now ranks tenth in global consumption, down from fifth in 2019. Rising costs have put additional pressure on the sector.

The Impact of Inflation on Global Wine Trade

Inflation has pushed wine prices up by 30% compared to pre-pandemic levels. The average export price reached €3.60 per liter in 2024, reflecting a trend toward higher-value wines even as overall volumes decline.

International trade remains steady. Export volumes held at 99.8 million hectoliters, while export value slipped slightly by 0.3% to €36 billion. Italy led in export volume, growing 3.2% to 21.7 million hectoliters. France led in export value with €11.7 billion, though that figure fell 2.4%.

OIV Director General John Barker calls this a market adjustment, not a crisis. Two years of lower production have kept supply in line with demand. Barker stresses the need for adaptation through innovation, research, and stronger international cooperation.

Wine now reaches 195 countries, more than ever before. This wider reach and a focus on premium products offer possible paths forward despite ongoing challenges.