Global Wine Production and Consumption Decline in 2024

By Sybille de La Hamaide

PARIS – Global wine production and consumption fell in 2024 to their lowest in decades, as extreme weather and high prices weighed on the sector, according to the International Organisation of Vine and Wine (OIV).

Challenges include tariffs on sales to the U.S., the world’s largest importer by value.

Wine consumption dropped 3.3% globally to an estimated 214 million hectolitres, the lowest since 1961, due to inflation and reduced consumer spending.

Changes in consumer behavior and a decrease in Chinese consumption, a significant factor since 2018, have also contributed to this decline.

Global wine production decreased by 4.8% to 226 million hectolitres, marking the lowest level in over 60 years and falling short of the OIV’s November estimates of 227-235 million hectolitres.

(Notably, one hectolitre equals 133 standard wine bottles.)

As seen in 2023, reduced output was primarily due to adverse weather and disease, particularly in Europe and parts of the Southern Hemisphere, according to OIV Director General John Barker.

The surface area of vineyards has contracted by 0.6% to 7.1 million hectares in 2024, marking the fourth consecutive year of decline.

This reduction reflects ongoing structural changes, including the removal of vineyards for various products across both hemispheres.

Among the top seven countries with vineyard areas, only Italy, the largest wine exporter, showed positive growth at 0.8%.

Despite reduced volumes, higher average prices have supported the market in value terms. The international wine trade faced its lowest volume since 2010 due to high prices and weakened demand but saw value growth in premium segments.

Exports totaled 99.8 million hectolitres, matching 2023 but falling 5% below the five-year average. Export value rose to 35.9 billion euros ($38.9 billion), driven by stable record-high prices averaging 3.60 euros per litre.

Of this, wine import value in the U.S. reached 6.3 billion euros last year, an increase of 1.6% from 2023, far exceeding the United Kingdom at 4.6 billion euros and Germany at 2.5 billion euros.