May 17th 2024

The combination of climatic hazards and diseases has marked a historic low in wine production for 2023. However, France notes a 4% increase, reclaiming the top position in both volume and value.

The International Organisation of Vine and Wine (OIV) has confirmed a significant drop in global wine production for 2023, reaching just 237 million hectoliters (Mhl), a 10% decrease from 2022. This marks the lowest production level since 1961. Both the European Union and the Southern Hemisphere experienced declines of 10% and 11%, respectively, resulting in a 25 Mhl shortfall compared to the previous year.

John Barker, the new Director-General of the OIV, commented that despite the production drop, the wine market will find a balance due to stable demand for industrial uses such as distillation and vinegar production. Extreme weather events and widespread diseases have contributed to this decline.

Major declines and production gains

Countries like Italy (-23.2%), Spain (-20.8%), Australia (-26.2%), and Argentina (-23%) faced substantial production decreases. China saw the steepest drop at 33%, a 53.9% decrease compared to its average production from 2018 to 2022. In contrast, the United States increased production by 9%, and France reclaimed its position as the top wine producer with a 4% increase, totaling 48 Mhl.

Wine Export values remain high

Despite the overall downturn, the value of wine exports remains high. The global vineyard area decreased by 0.5% to 7.2 million hectares, and wine consumption fell by 2.6% to 221 Mhl. However, the average export price of wine reached a record €3.62 per liter, maintaining a total export value of €36 billion.

Emerging trends and market shifts

India continues to rise in the wine industry, entering the top 10 producers with a vineyard area of 180,000 hectares, a 2.7% increase from 2022. However, its production mainly focuses on table grapes rather than wine.

In Europe, only Italy showed a slight increase in vineyard area by 0.2%, whereas the overall EU vineyard area declined by 0.8% to 3.3 million hectares. Spain and France, the largest vineyards in the world, saw reductions of 1% and 0.4%, respectively. China's vineyard area also decreased by 0.3% to 756,000 hectares.

Consumption and Export trends

Wine consumption in China has plummeted by 24.7% from 2022, relegating it from the fifth to the ninth largest consumer worldwide. Global wine consumption is at its lowest since 1996 due to inflation and reduced purchasing power. Spain and Russia were the only major countries with increased wine consumption, by 1.7% and 3%, respectively.

Export volumes dropped by 6.3%, and values fell by 4.7% in 2023. The average price per liter has risen by 29% since 2020 due to inflation. Sparkling wines have seen the most significant price increase, rising by 31% since 2020. France remains the leader in export value, with an average price of €9.4 per liter.

John Barker noted that while the volume of wine exports has decreased, the proportion of wine exported globally has increased significantly from 26% in 2000 to 45% in 2023, despite economic and geopolitical challenges.

Global impact and opportunities

For global wine professionals and businesses, understanding these trends is crucial for strategic planning and market positioning. The resilience of the French wine industry, despite global challenges, highlights opportunities for investment and collaboration. The shift towards higher export values and the rise of emerging markets like India suggest new avenues for growth and innovation in the wine sector.

To explore more about French wines and connect with suppliers, visit our French Wine category on the Business France Marketplace.