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Global Wine Consumption Plummets to Historic Low in 2024
Global wine consumption has sunk to its lowest point since 1961, according to preliminary data released by the International Organisation of Vine and Wine (OIV). This downturn in the global wine market reflects a challenging year for the wine industry, marked by shifting consumer behaviors and economic pressures.
Significant Decline in Wine Demand
The OIV’s “State of the World Vine and Wine Sector in 2024” report estimates worldwide wine consumption at 214.2 million hectolitres (mhl) in 2024. This figure represents a 3.3% decrease from the previous year’s already diminished levels. The organization characterized 2024 as a “challenging year” for the sector, citing elevated prices and weakening demand in key markets as primary drivers of this contraction. High prices, in turn, are attributed to reduced production volumes coupled with the ongoing impact of prior inflationary pressures.
Consumption Declines in Major Markets
A significant majority, fifteen out of the top twenty global wine markets, experienced year-on-year consumption reductions. China witnessed a dramatic 19.3% plunge in consumption, falling to 5.5 mhl. The OIV notes a consistent decline in Chinese wine consumption, averaging a 2 mhl decrease annually since 2018, indicating a persistent shift in market trends.
Mixed Performance Among Top Consumers
While the top five wine consuming countries – the United States, France, Italy, Germany, and the United Kingdom – demonstrated more stable consumption patterns, the overall trend remained downward. Notably, four of these five markets registered year-on-year decreases in 2024, with Italy being the sole exception, maintaining a level of consumption.
US and Canada See Notable Drops
In the United States, the world’s largest wine market, consumption contracted by 5.8% to 33.3 mhl. Canada mirrored this trend, with wine consumption declining by 6.4% to 4.6 mhl, highlighting a broader pattern of reduced demand in North America.
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Argentina Reaches Historic Consumption Low
Argentina experienced a particularly sharp decline, with wine consumption falling to 7.7 mhl, marking its lowest level since 1942. This underscores the widespread nature of the consumption downturn, affecting even traditionally strong wine-consuming nations.
Evolving Factors Shaping Wine Demand
Looking ahead, the OIV emphasizes that future wine demand will be shaped by evolving lifestyle preferences, shifting social conventions, and generational changes in consumer behavior. Furthermore, global events such as the Covid-19 pandemic and the conflict in Ukraine have exerted additional pressure on an already strained global market, contributing to the current challenging environment for the wine industry.
Wine Production Also Hits a Historic Low
Concurrently, wine production has also decreased to its lowest level since 1961. The OIV estimates 2024 wine production, excluding juices and musts, at 225.8 mhl, representing a 4.8% year-on-year decrease. The year 1961 saw a comparable production volume of 219 mhl, largely due to spring frosts in Southern Europe.
Production Declines Across Key Regions
Significant year-on-year production declines were observed in major wine-producing regions: the US (17.2%), China (17%), Chile (15.6%), and Germany (9.8%). However, bucking this overall trend, Russia experienced a 19.3% increase in production, while Georgia, a smaller producer, saw a substantial 26.6% surge.
Impact of Weather Events on Vineyards
The OIV attributed these production decreases to “atypical meteorological events,” including early frosts, excessive rainfall, and prolonged droughts. These extreme weather patterns have significantly impacted vineyard productivity, contributing to the reduced global wine supply.
Global Wine Exports Remain Weak
The volume of global wine exports remained near its lowest level since 2010, totaling 99.8 mhl, a marginal 0.1% decrease compared to 2023. The estimated value of global exports stands at €35.9 billion ($40.8 billion), reflecting a slight 0.3% decline. These figures indicate continued challenges within the international wine trade.