Weekly Product Updates

W41: Wine Update

Other Wine
Sparkling Wine
Published Oct 20, 2023

In W41 in the wine landscape, the European Union (EU) is expected to see a 6% decline in wine production for 2023, projected to be around 15 billion liters, due to adverse weather conditions. Adverse weather in Italy, including hailstorms and prolonged heat in Sept-23 and Oct-23, is expected to result in an even lower harvest than the previously forecasted 12%. The quantitative estimates for the current harvest are especially low in regions like Veneto, Friuli Venezia Giulia, and Piedmont in the North and in the South, including Abruzzo and Sicily, where hail and persistent heat have affected grape volumes.

As a result of extreme weather and fungal diseases, Italy is poised to lose its title as the world's largest wine producer, with France expected to reclaim the top spot for the first time in nine years. The French Ministry of Agriculture predicts this year's wine production to be similar to 2022 and 3% above the five-year average, totaling 4.6 billion liters, with regional variations. The European Commission estimates French wine production at 4.5 billion liters. Production challenges in France include mildew in Bordeaux and the southwest, heat waves, and drought in Languedoc and Roussillon, while other regions, such as the Charentes, have more favorable conditions.

In Jul-23, wine consumption in Spain decreased by 6.5% year-on-year (YoY) but increased 0.2% month-on-month (MoM), reaching 9.64 million liters. However, the decline shows signs of slowing down, and home consumption is approaching pre-pandemic levels. In the hospitality industry, 216 million liters of wine were sold, which is still significantly below pre-pandemic levels when consumption was around 300 million liters. Meanwhile, the average price per liter in both channels slightly slowed its rise, although it remains at its highest level in the historical series, reaching USD 4.41/liter in household sales (a 4.8% increase) and USD 6.62 in hospitality sales (a 9.1% increase).

In the first nine months of 2023, Argentina's wine exports totaled 147.1 million liters, a drop of 29.3% YoY. Out of this total, 77.9% (14.6 million liters) constituted fractional wines, showing a 26% YoY decrease, while 22.1% (32.6 million liters) were bulk wines, experiencing a substantial 38.9% YoY decline. The average price of wine for the Jan-23 to Sept-23 period was USD 3.53/liter, reflecting a 14.1% YoY increase. Fractional wine was priced at USD 4.24/liter, up by 9.7%, while bulk wine had an average price of USD 1.02/liter, indicating a 20% increase. Consequently, the average price of both varietal and non-varietal wines has risen during this period.

Moldova has been recognized as one of the top 20 countries in the world for producing high-quality wine, according to the National Bureau of Statistics (NSB) of Moldova. The country's wine production includes 144 million liters of still wines and over 9.85 million liters of sparkling wines, using a harvest of 531 thousand metric tons (mt) from the previous year. In 2021, Moldova harvested 490,700 mt of wine grapes, yielding 156 million liters of still wines and 9.50 million liters of sparkling wines. Most of Moldova's wine exports, around 31.97 million liters, were sent to Belarus. The top five importers also included Georgia (13.73 million liters), Romania (9.757 million liters), the Czech Republic (6.23 million liters), and Poland (5.556 million liters).

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