Paris (AFP) – Worldwide consumption of wine fell in 2024 to its lowest level in more than 60 years, the main trade body said Tuesday, raising concerns about new risks from US tariffs. The International Organisation of Vine and Wine (OIV) reported that 2024 sales fell 3.3 percent from the previous year to 214.2 million hectolitres. The OIV, whose report was based on government figures, indicated that this would be the lowest sales figure since 1961, when sales were 213.6 million hl.
Production is also at its lowest level in more than 60 years, having fallen 4.8 percent in 2024 to 225.8 million hl. OIV statistics chief Giorgio Delgrosso stated that the wine industry had been hit by a perfect storm, with health concerns driving down consumption in many countries while economic factors added to the troubles. “Beyond the short-term economic and geopolitical disruptions,” said the OIV’s annual report, “it is important to consider the structural, long-term factors also contributing to the observed decline in wine consumption.”
The OIV noted that the consumer is now paying about 30 percent more for a bottle than in 2019-2020, and overall consumption has fallen by 12 percent since then. The United States, the world’s top wine market, saw consumption fall 5.8 percent to 33.3 million hl. Delgrosso mentioned that tariffs ordered by US President Donald Trump, even though temporarily suspended, could become “another bomb” for the wine industry.
Sales in China remain below pre-Covid-19 levels, despite a rebound since the pandemic. Europe, which accounts for nearly half of worldwide sales, witnessed a consumption fall of 2.8 percent last year. Even in France, one of the key global producers, 3.6 percent less wine was consumed last year. Spain and Portugal were among the rare markets where consumption increased.
The OIV reported that production had been affected by environmental extremes, such as above-average rainfall in some key regions and droughts in others. Italy was the world’s top producer with 44 million hl, while France’s output fell 23 percent to 36.1 million hl, its lowest level since 1957. Italy is also the biggest wine exporter, and its trade increased due to the popularity of sparkling wines like Prosecco. Spain produced 31 million hl, while US wine output fell 17.2 percent to 21.1 million hl, mainly due to extreme heat.
The OIV could not predict if consumption would take off again, and wine industry players, such as the French retail chain Nicolas, stated there is a “generational” fall in drinking. “People do not drink in a festive way anymore, and young people consume less than their parents,” the company said in a statement to AFP. However, it added, “people drink less, but better” and are therefore ready to spend more.
© 2024 AFP
