Paris (AFP) – Worldwide consumption of wine fell in 2024 to its lowest level in more than 60 years, the main trade body said Tuesday, raising concerns about new risks from US tariffs. The International Organisation of Vine and Wine (OIV) stated that 2024 sales declined by 3.3 percent from the previous year to 214.2 million hectolitres. This figure marks the lowest sales total since 1961, when sales were recorded at 213.6 million hl.
Production also reached its lowest level in over six decades, having fallen 4.8 percent in 2024 to 225.8 million hl. OIV statistics chief Giorgio Delgrosso mentioned that the wine industry has been affected by a perfect storm of factors, with health concerns diminishing consumption in numerous countries while economic factors further exacerbated the troubles. “Beyond the short-term economic and geopolitical disruptions,” stated the IOV’s annual report, “it is important to consider the structural, long-term factors also contributing to the observed decline in wine consumption.”
The OIV reported that consumers are now paying about 30 percent more for a bottle than they were in 2019-2020, with overall consumption having fallen by 12 percent since that time. In the United States, the world’s top wine market, consumption declined by 5.8 percent to 33.3 million hl. Delgrosso warned that tariffs imposed by former US President Donald Trump, although temporarily suspended, could turn into “another bomb” for the wine industry.
Sales in China remain below pre-Covid-19 levels, despite signs of a rebound following the pandemic. Europe, which represents nearly half of worldwide sales, experienced a 2.8 percent decrease in consumption last year. Notably, even in France, one of the key global producers, 3.6 percent less wine was consumed last year. Spain and Portugal were among the few markets where consumption increased.
The OIV highlighted that production has been impacted by environmental extremes, including above-average rainfall in some key regions and droughts in others. Italy emerged as the world’s top producer with 44 million hl, while France’s output fell by 23 percent to 36.1 million hl, the lowest level since 1957. Italy’s status as the largest wine exporter continued, with trade increasing due to the rising popularity of sparkling wines like Prosecco. Spain produced 31 million hl, while US wine output fell by 17.2 percent to 21.1 million hl, primarily due to extreme heat.
The OIV could not forecast whether consumption would rebound, as wine industry players—including the French retail chain Nicolas—have noted a “generational” decline in drinking habits. “People do not drink in a festive way anymore and young people consume less than their parents,” the company stated in a message to AFP. However, it added, “people drink less, but better” and are willing to spend more on higher-quality options.
© 2024 AFP
