Wine’s big dip as global consumption hits 61-year low
Khairat Asokomhe
The world consumption of wine was reported to have fallen drastically to its lowest level since in more than 60 years, as the threat of tariffs seems to be threatening another industry .This decrease was contributed due to various factors affecting the economy such as inflation, shift in consumer preferences as well as generational change in consumer behaviour.
The International Organisation of Vine and Wine reported that world wine consumption 3.3% falls to 214 million hectolitres (mhl) compared to the previous year. Due to government records on sales figures , it is seen as the lowest global wine consumption level since 1961.
OIV reports also show, the production of wine globally in 2024 is the lowest in over 60 years as it was estimated at 226 million hectolitres, down 5 % compared to 2023. This is mainly due to the impact of climate change, which is causing increasingly unpredictable and extreme weather events across both the Northern and Southern Hemispheres.
Global Wine producing states like France, US, Spain also witness a decrease in production. Decline in a mature market is significantly attributed to the fall of wine consumption. Younger generations drinkers might drink less in terms of volume, but they’re spending more overall.
Inflation and increased costs of living have decreased consumer spending power, making wine less affordable. But with global production declining, prices are likely to remain stable which is fortunate, as rising prices are now essential for the industry’s well-being.
Research shows that consumers are paying about 30% more for a bottle now than in 2019-2020 and overall consumption has fallen by 12% since then.
Giorgio Delgrosso, OIV statistics Chief said the wine industry had been hit by a perfect storm, as health concerns have led to declining consumption in many countries, while economic challenges have further compounded the difficulties.
“Beyond the short-term economic and geopolitical disruptions. It is important to consider the structural, long-term factors also contributing to the observed decline in wine consumption.”
However, Delgrosso said that tariffs imposed by the U.S president, Donald Trump could serve as “another bomb” for the wine industry.
OIV report stated that despite the fall in both production and consumption, global market is expected to hold in 2024, as production is unlikely to exceed demand-continuing the pattern established by the small 2023 harvest.
“Two consecutive years of low output may help stabilize the market, though stock levels are likely to remain uneven across regions. International trade holds volumes and value Export volumes held steady at 99.8 million hectolitres (mhl). Export value slightly declined by 0.3% to 36 billion EUR, but remains at a historically high average export price of 3.60 EUR/litre. Inflation and low supply continue to keep prices high compared to pre-pandemic years (almost 30% above).”
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