Global wine consumption falls to lowest level since 1961

Consumption and production of wine across the world fell in 2024 to its lowest level in more than 60 years, the International Organisation of Vine and Wine (OIV) said on Tuesday (April 15). This is compounded by fears about new risks from US tariffs.

OIV in a report based on government figures said that sales in 2024 fell 3.3 per cent to 214.2 million hectolitres (hl) from 2023. These are the lowest sales figures since 1961 when sales were 213.6 million hectolitres.

While production too is at its lowest level in more than 60 years, it fell 4.8 per cent in 2024 to 225.8 million hectolitres.

Giorgio Delgrosso, the OIV statistics chief said health concerns along with economic factors drove consumption down in many countries.

In the report, he said, “Beyond the short-term economic and geopolitical disruptions, it is important to consider the structural, long-term factors also contributing to the observed decline in wine consumption.”

Compared to 2019-2020, consumers are paying about 30 per cent more for a bottle. This has led to a 12 per cent decline in consumption.

The world's top wine market, United States, saw consumption fall 5.8 per cent to 33.3 million hectolitres.

Delgrosso said that tariffs imposed by President Donald Trump, even though temporarily suspended, could become “another bomb” for the wine industry.

In China, sales remain below pre-Covid levels.

Europe, which accounts for nearly half of worldwide sales, saw consumption fall 2.8 percent last year. Even in France, one of the key global producers, 3.6 percent less wine was knocked back last year.

In Spain and Portugal, consumption saw an increase.

Environmental factors such as high rainfall in some areas and droughts in others impacted production according to the report.

Italy took the top spot in production with 44 million hectorlitres. Italy is also the bigeest exporter and its trade increased due to the high demand of sparkling wines such as Prosecco.

France's output fell by 23 per cent to 36.1 million hectolitres, the lowest since 1957.

Due to excessive heat, US wine production dropped 17.2 per cent to 21.1 million hectolitres, while Spain produced 31 million.

As per a report by the Guardian, Nicolas, popular French chain of wine shops believe there is a "generational fall" in drinking.

“People do not drink in a festive way any more and young people consume less than their parents,” the company said acording to the publication.

They also noted that "people drink less, but better", and are ready to spend more.