International Wine Trade
In 2021, global wine exports amounted to 111.6 mhl, a 4.4% increase compared to the 106.9 mhl recorded in 2020, reaching the largest volume recorded in history. Similarly, in 2021 global export value hit a record high of USD 36B (calculated at an exchange rate of EUR 1 to USD 1.05), 15.5% higher than the USD 31.2B traded in 2020. Bottled wine accounted for 53% of the volume and 69% of the value of global wine sold in 2021. Sparkling wine made up 10% of the volume and 22% of the value. Bag in a box constituted 4% of volume and 2% of value, while bulk wine accounted for 33% of the volume but only 7% of value.
Wine Exports in the Northern Hemisphere
The 2021 global wine industry was dominated by Spain, Italy and France who together exported 59.9 mhl, accounting for 54% of global wine exports by volume, a 5.4 mhl increase compared to 2020. Spain, Italy and France were also the three dominant exporters in terms of value with USD 22.1B, accounting for 61% of the total export value in 2021. Spain exported the largest volume of wine with 23.0 mhl, accounting for 21% of the global market. However, France takes the number one position in 2021 regarding trade value, with wine exports worth USD 11.6B. France recorded an 8% increase in export volume coupled with a 26.8% increase in value suggesting that exported French wine was significantly more expensive in 2021 compared to 2020. This is most likely due to the small French harvest in 2021 which resulted in limited supply of wine. High demand in the face of limited supply put significant upward pressure on French wine prices. The US exported 3.3 mhl in volume, a decrease of 8.9% compared to 2020, while export value increased by 6.8% to USD 1.3B. The decrease in US exports is the result of smaller volumes going to Canada, which experienced a decrease in consumption and the UK, which is experiencing post-brexit supply chain issues. Canada recorded the highest positive variation among major exporters, in both volume and value, with a 25.6% increase in volume to 2.1 mhl, and 41.2% increase in value to USD 69M. The increase in Canadian exports is the result of increased volumes going to the US in 2021.
Table 1: Global Wine Exports in Volume and Value 2020-2021
Source: International Organisation of Vine and Wine (OIV)
Wine Exports in the Southern Hemisphere
Chile production increased by 2% in volume compared to 2020, reaching 8.7 mhl, and a 4% increase in value to USD 1.75B in 2021. Australian wine exports have decreased significantly in 2021 due to the implementation of Chinese tariffs on Australian wine imports ranging from 116% to 218% in March 2021. Australian wine exports are down 17% in volume YoY at 6.3 mhl and down by 24% in value to USD 1.4B compared to 2020. South African wine exports experienced a resurgence due to the lifting of COVID-19 lockdown restrictions. The export volume in 2021 increased by 33% to 4.8 mhl and in value by 18.6% to USD 666M compared to 2020. Total wine exports from Argentina have decreased in volume by 15% compared to 2020, reaching 3.3 mhl in 2021. However, the value of its exports is up 6.7% YoY at USD 735M. Argentina exported more bottled wine in 2021 compared to its traditional bulk wine exports which explains the rise in value even when total exported volume decreased. New Zealand experienced only a slight decrease in volume of 0.6% to 2.8 mhl coupled with a minor increase in value of 1.7% to USD 1.2B compared to 2020.
Wine Imports in Europe
Germany was the largest importer by volume in 2021 with 14.5 mhl, which is in line with its import volume in 2020. Germany ranks third in value, importing wine worth USD 2.9B in 2021, up 5.6% from 2020. Germany primarily sources its wines from Italy and France, whose wines were more expensive in 2021 due to small harvests. German consumers are also exhibiting a preference for more premium wines, especially among younger consumers contributing to higher prices. The UK imported 13.6 mhl of wine in 2021, decreasing by 6.7% YoY. In terms of value, UK imports have increased by 7.3%, reaching USD 4.3B. The difference in volume and value in the UK are indicative of rising wine prices caused by disruptions related to Brexit. The UK also sources high volumes of wine from France and Italy which came at high prices in 2021.
French wine imports have declined by 6% to 5.9 mhl in 2021 while the value of imported wine has increased by 7.3% to USD 862M. France imported a larger share of more expensive bottled wine in 2021 compared to its usual bulk wine imports, which accounts for the discrepancy between import volume and value. The Netherlands increased the volume of imported wine by 6.6% to 5 mhl with a subsequent increase in value of 10.6% to USD 1.5B. Belgium experienced increases in both volume and value of 29% at 3.9 mhl worth USD 1.4B in 2021. The increase in imports was for the purpose of re-exporting to the UK which is facing supply difficulties due to Brexit.
Table 2: Global Wine Imports in Volume and Value 2020-2021
Source: OIV
Italy recorded a massive increase in imports in both volume and value in 2021. The import volume increased by 82.9% from 1.6 mhl to 3 mhl while the import value increased by 37.3% to USD 400M. Italy imported a large volume of bulk wine from Spain in 2021 to compensate for the small harvest it had due to frost damage, explaining the surge in volume and comparative lower increase in price. Portugal imported 2.8 mhl of wine which was an increase of 2.9%, and the import value was USD 169M. Portugal sources the majority of its wine from Spain, which experienced relatively stable prices in 2021. Lastly, Swedish imports declined by 11.1% to 2.1 mhl, but the value of imports remained similar to 2020 at USD 785M. Swedes purchased wine domestically rather than at border shops in Germany and Norway, or while travelling out of the country, which explains the lower import volume.
Wine Imports in North America
The US is the second largest importer by volume increasing 13.1% to 13.9 mhl in 2021. However, the US continues to secure its position as largest global wine importer in terms of value at USD 6.6B which is a YoY increase of 21.1%. The US primarily sources its wines from Italy and France, whose wines were more expensive in 2021 due to small harvests. Canada’s import volume declined by 6.9% to 4.2 mhl, but has increased by 10.3% in value, reaching USD 2B in 2021. Canada’s wine consumption has decreased in recent years explaining the lower import volume. Canada primarily sources its wines from France, the US, and Italy. All three countries sold wines at comparatively more expensive prices in 2021.
Wine Imports in Asia
China imported 4.2 mhl in 2021, a YoY decline of 1.4% while the value of imported wine dropped by 10.5% to USD 1.5B. China’s imports of bottled wine decreased in 2021 while bulk wine imports, which is cheaper, increased accounting for the decreased import value. Russia imported 3.7 mhl of wine in 2021, accounting for an increase of 5.9% with the value of wine imports remaining similar to 2020 at USD 1.1B. The increase in import volume was to supply the increasing demand for wine in Russia. As shipping to Russia becomes increasingly constrained due to the Russia-Ukraine conflict, Russia will have difficulty sourcing wine from its primary suppliers such as Italy, Spain and France in 2022. Japan reduced its wine imports by 4.8% to 2.4 mhl with a 5.4% increase in value to USD 1.5B. The major suppliers were France and Italy, which were trading at high prices in 2021. The elevated prices explain the decrease in volume.