In W23 in the wine landscape, wine's flavour is radically changing as a result of global warming. High temperatures are leading to a rapid "withering" of the grapes, which have not yet had time to move into phenolic maturity (when the berries become less bitter and soften). As a result, grapes must be harvested sooner to avoid burning in the vineyard. However, such grapes do not yet have the sugar content needed for fermentation. Wine from those berries turns out to be low in alcohol and with a less desirable taste profile. Spain is the country with the largest vineyard area in the world, with 940 thousand ha, the third largest producer of wine globally, and the largest exporter in terms of volume, with 27 million hectoliters. In Chile, the wine industry is greatly affected by rising temperatures and a lack of water, leading to early harvests, lower yields, and changes in the wine's characteristics, such as alterations in tannins, acidity, and alcohol level. According to the Wines of Chile trade association, bottled wine exports in April fell 29.6% YoY in volume and 26.8% YoY in value, with shipments of 2.8 million boxes worth USD 4.8 billion, although the average price increased by 4% YoY. Shipments to Brazil, Japan, the Netherlands, Canada, Mexico, and South Korea all experienced significant drops in addition to China's ongoing declines, which in April fell 39% YoY in volume and 34% YoY in value.
In Brazil, imported wine sales in 2022 grew by 7% in value to gain a 63% value share, while Brazilian wines declined by 4%. Additionally, imported wines are sold at a higher price, with the average retail value of a bottle of wine being USD 11.89 as opposed to USD 3.65 for wines made domestically. Although growth has been rapid for imported wines, it is expected to slow down over the next five years to 5% annually. However, this is mostly the case for the large imported sources, such as Chilean, Portuguese, and Argentinian wines, while smaller country sources, including the US, South Africa, and Australia, are expected to continue growing strongly. Australia has a small share of the Brazilian wine market, with only a 0.4% value share of imported wines. However, it is anticipated to expand by an average of 13% per year over the next five years, the fastest growth rate among the top 10 import origins.
Italian wine, spirits, and vinegar, which account for 21% of made-in-Italy agri-food exports worth over USD 22.26 billion, are strongly threatened by EU policies. This includes the Irish legislation on health warnings on labels regarding the risks associated with alcohol consumption. Also, the new rules on packaging favour reuse over recycling and aim at standardising packaging. Nevertheless, the EU-approved Irish initiative to sell spirits with the label regulation has not been well received by French wine producers. Lastly, in Russia, the authority to approve the procedure for collecting data on vineyards and creating their passports, including the rules for compiling and amending documents, is transferred from the government to the Ministry of Agriculture.
