The wine industry faced a significant drop in 2024 as output and consumption recorded historic lows. The International Organisation of Vine and Wine (OIV) reported that world wine consumption dropped to 214.2 million hectolitres 3.3% lower than 2023 levels, the steepest decline since 1961 when consumption was at 213.6 million hectolitres.
US and Europe Register Significant Falls
The United States, though still the biggest volume-consuming country, posted a precipitous 5.8% decline in consumption to 33.3 million hectolitres in 2024. Europe, which produces almost half the world’s wine, also experienced a 2.8% decline overall. France posted a 3.5% fall, while Spain and Portugal showed a slight increase in consumption.
The wine production also crashed in 2024 to 225.8 million hectolitres, its lowest in more than six decades—primarily because of unfavorable weather conditions such as drought and relentless rainfalls in major wine-producing areas. France’s production dropped by 23% to 36.1 million hectolitres, its lowest in 1957. The US saw a drop of 17.2% and produced 21.1 million hectolitres because of heatwaves.
Italy defied the trend by yielding 44 million hectolitres, spurred by robust domestic demand. Spain posted a production level of 31 million hectolitres. Worldwide, the area under vineyards also declined by 0.6% to 7.1 million hectares, although Italy increased its cultivated area by 0.8%.
Rising Costs and Trade Pressures
Financial strain has also weighed upon the wine sector further.Rising retail and production costs have driven prices upwards. The standard price of wine rose 30% since the 2019–20 season, according to OIV. Though exports worldwide were level at 99.8 million hectolitres, its 2023 repeat—the figure stands 5% below the five-year average and is the lowest since 2010.
Even with smaller volumes, the world wine trade retained its value at €35.9 billion ($38.9 billion) for the most part because of stable average prices at €3.60 per litre and growing customer demand for premium wines.
Shifting Trends Among Younger Generations
The growth of alternative drinks has contributed to the plight of the industry. Richard Halstead, COO Consumer Research at IWSR, said, “With the tremendous changes in the beverage alcohol sector in the past fifteen years… wine has faced a lot of competition from a more adventurous alcohol consumer.” Millennials and Gen Z consumers are becoming more and more demanding for cocktails, craft spirits, ready-to-drink mixes, and functional drinks.
Changes in Consumer Behavior
Even traditional wine consumers are shifting away from habitual drinking patterns. In Australia, for example, average monthly wine consumption by adults fell by 50% between 2010 and 2023. The shift is in line with longer-term changes in lifestyle, as many consumers lead healthier lifestyles and drink in moderation.
In 2023, half of the wine drinkers in major markets cut back on drinking alcohol, 20% switching to low or non-alcoholic drinks, according to IWSR. Such changes, along with economic and environmental woes, continue to remake the world wine market.
