World wine production fell 10% in 2023 due to adverse meteorology

In 2023, the global wine industry faced a significant downturn with a 10% decrease in production, dropping to their lowest levels since 1961, attributed primarily to extreme weather conditions. The International Organization of Vine and Wine (OIV) reported mixed results among major producers, such as France, Italy, and Spain, experiencing declines, while Argentina, Australia, and South Africa saw increases. A global demand drop of 2.6% further tightened the market, largely due to increased inflation and a decline in consumption, exacerbated by climate change. Although the reduced production is expected to stabilize the market, it also led to an oversupply of 16.1 million hectoliters. The future outlook shows a continued decline in red wine consumption but a rise in white and sparkling wines, with the vineyard area continuing to shrink. International wine trade also suffered, with a 6.3% drop in exports in both volume and value, despite a slight increase in the average price of premium wines.