South American and European summers are getting hotter and hotter. Bad news for vineyards. In the case of Chile, irrigation depends on the melting of the Andes, which is increasingly less reliable, while excessive heat damages the grapes. Wine production in Chile has declined in four of the last five years. The situation is similar in the rest of Latin America. The decline in the region’s wine production accounted for a third of the total decline in global production in 2023.
Outside of Latin America, new vineyards are often financed with venture capital. But these financing sources are relatively scarce in the market. Most producers will most likely end up staying where they are and suffering the consequences of climate change.
In the case of Italy, wine production decreased by more than 10% year-on-year in 2023. In the United States, however, production increased by more than 10% year-on-year, and in Germany it increased timidly, according to the data from the International Organization of Vine and Wine.
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