Wine, production at its lowest level since 1961 and price increase: is this happening?

In 2023, the global wine sector faced numerous challenges, as highlighted byInternational Organization of Vine and Wine (OIV). Wine production has suffered a significant decline, reaching historically low levels, and prices have increased due to the persistent inflationary pressures that began in 2022. According to the statistical report of the OIV, chaired by the Italian Luigi Moio, the area cultivated with vineyards at worldwide continued to decline, recording a reduction of 0.5% compared to the previous year, for a total of 7.2 million hectares. This contraction trend, which is observed for the third consecutive year and concerns both wine and table grapes, was caused by the removal of vineyards in the main wine-growing areas of both hemispheres.

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Extreme climatic conditions and widespread fungal diseases have further damaged global vineyards, driving wine production to an all-time low of 237 million hectoliters, which marks a 10% decrease from 2022 and represents the lowest production since 1961. Global consumption of wine was estimated at 221 million hectoliters in 2023, showing a reduction of 2.6% compared to the previous year.

Despite the increase in production and distribution costs, driven by inflation, wine prices have increased, putting further pressure on consumers, already struggling with a reduction in their purchasing power. However, some key markets have demonstrated some resilience, as highlighted by the OIV. The international wine trade suffered the effect of the price increase, although the total export volume fell to 99 million hectoliters. This decrease, however, was offset by an increase in the value of exports, which reached 36 billion euros.

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