Global wine consumption at a historic low. High prices have reduced consumer appetite

Global wine consumption last year reached its lowest level since 1996 as inflation drove up prices, reducing the purchasing power of potential consumers, the International Organization of Vine and Wine (OIV) announced. , reports Reuters.

The Paris-based organization estimated world wine consumption in 2023 at 221,000,000 hectoliters, 2.6% less than in 2022 and 7.5% below the 2018 level. One hectoliter is equivalent to 133 standard bottles of wine.

Geopolitical tensions, notably the war in Ukraine, and subsequent energy crises, along with disruptions to global supply chains, have led to higher production and distribution costs, which have translated into higher prices for wine consumers, which has reduced the request, claims the OIV.

The decline was particularly large in China, down 25%. At the turn of the century, wine consumption had surged with the expansion of the middle class, but in the past five years it has fallen by more than 60% to 6.8 million hectoliters due to restrictions caused by Covid-19 and price pressures that have the trend is spilling over more into emerging markets such as China, said John Barker, director general of the OIV.

Regarding international trade, quantitative exchanges decreased by 6.3%, to 99,000,000 hectoliters, but only by 4.7% from a value perspective (36 billion euros) as the average price of a liter of wine reached a record level.

The OIV also cut last year’s production estimate from 244 million to 237 million hectoliters, the lowest level in 60 years. The steep decline is caused by adverse weather such as frost, heavy rains or drought, plus the spread of vine diseases.

Italy had the lowest harvest since 1950 – 38.3 million hectoliters, 23% less than in 2022, thus losing the world leader position to France.

Southern Hemisphere production in Australia and Argentina is forecast to increase in 2024, but below the 2018-2023 average. A cold spring and late harvest will cause production in Chile to decline for the third year in a row, with the reduction averaging 17%.