Global Wine Industry Faces Declining Consumption and Production Amid Economic and Climate Challenges

The global wine industry faced significant challenges last year, with both consumption and production declining. According to the International Wine and Vine Office (OIV), 221 million hectoliters of wine were consumed worldwide in 2023, the lowest level in 27 years. The OIV attributed this decline to rising production and distribution costs, driven by factors such as geopolitical tensions, the energy crisis, and supply chain disruptions in the global economy.

In addition to declining consumption, wine production also decreased last year, reaching its lowest level in over 60 years. The estimated global wine production in 2023 was 237 million hectoliters, a 10% decrease from the previous year. Poor weather conditions, including early frosts, heavy rains, and droughts affected both hemispheres’ vineyards. Fungal diseases also contributed to this drop in production.

Major wine-producing countries like Italy experienced a significant decline in production last year. France surpassed Italy as the largest producer of wine in 2023. These trends have had a significant impact on the global wine market and have highlighted challenges faced by the industry. The OIV reported that China experienced a particularly pronounced decline in consumption compared to the previous year, with consumption falling by 25%. This trend has been influenced by factors such as COVID-19 pandemics and escalating wine prices over the past five years. Finland withdrew from the OIV in 2015, leaving it to continue its work monitoring and analyzing global trends within