After several difficult years marked by climate extremes and market pressures, Europe’s wine industry is showing the first signs of recovery.
According to data published by Copa-Cogeca on October 28, 2025, total wine production across the continent is expected to reach 145.5 million hectoliters, a 1% increase compared to 2024.
Despite this modest rebound, the figure remains 7.5% below the five-year average and over 40 million hectoliters lower than the 2018 harvest, confirming a persistent downward trend for the sector.
Leading Producers: Italy Strengthens Its Position
Italy continues to lead as the largest wine producer in the European Union, with an estimated 47 million hectoliters, representing an 8% increase from last year. The country benefited from mild autumn and winter temperatures and ample rainfall that replenished water reserves, particularly in central and northern regions. However, the wet spring also led to higher disease pressure, notably downy mildew. Growth was especially strong in the southern regions of Basilicata, Abruzzo, and Molise, where production rose between 25% and 40%, while Veneto retained its position as the leading wine-producing region.
France, the EU’s second-largest producer, recorded a 2.3% increase, reaching nearly 37 million hectoliters. However, production remains 12% below its five-year average due to ongoing challenges caused by climate volatility. Uneven rainfall, extreme heat, and wildfires in southern France—destroying over 1,000 hectares of vineyards and threatening an additional 16,000 hectares—have complicated recovery efforts. The French government also continues to promote a vineyard reduction program, aimed at restructuring the industry amid declining consumption.
Spain, ranking third with around 31.5 million hectoliters, faced a 15% decline compared to 2024. Following a promising spring, an exceptionally dry summer—particularly in August—severely reduced yields. High temperatures and persistent drought, combined with disease outbreaks such as downy mildew, caused substantial losses, especially in the interior regions. Nonetheless, producers report high-quality grapes, offering a silver lining for premium wine categories.
Declines in Germany and Portugal, Increases in Austria and the Netherlands
Germany recorded its second consecutive year of decline, producing 8% less than in 2024 and 14% below its five-year average. The downturn coincides with weak domestic demand, intensifying pressure on producers. Portugal also reported a significant 11% decrease, the largest among Europe’s top five producers, with adverse weather and declining export opportunities as key factors.
Conversely, Austria and the Netherlands reported increases in production. The Netherlands even exceeded its historical average, reflecting the gradual expansion of viticulture into northern Europe.
Emerging Northern Producers: Sweden Joins the European Wine Map
For the first time, Sweden participated in the European grape harvest report, under the theme “Wine and Climate Change: Adapting Traditions.” With 65 producers and an estimated production of 2,000 hectoliters, the Nordic nation remains small in scale but symbolic of Europe’s climatic transformation, as warming temperatures open new possibilities for viticulture in previously unsuitable regions.
A Sector Under Pressure: Climate, Trade, and Demand
Beyond weather-related difficulties, trade and economic conditions continue to weigh on European wine producers. U.S. tariffs on European wines remain in effect, curbing exports and eroding profitability. Global trade tensions have also disrupted traditional markets and logistics.
Meanwhile, domestic demand across Europe remains weak, hindered by inflation, job insecurity, and evolving consumer habits—including the growing preference for low-alcohol or alternative beverages. These shifts are making it difficult for local consumption to compensate for reduced production volumes.
Outlook: Resilience Amid Adversity
Despite these challenges, Luca Rigotti, president of Copa-Cogeca’s wine working group, remains cautiously optimistic:
“Conditions remain challenging for European vineyards, but many producers have managed to partially reverse recent negative trends thanks to their dedication and resilience.”
Copa-Cogeca, representing European farmers and agricultural cooperatives, continues to advocate for sustainable and innovative viticulture, emphasizing the need for policies that strengthen climate resilience, economic stability, and market access for producers.
The 2025 harvest, while modest in growth, serves as a symbol of perseverance. As Europe’s winemakers adapt to shifting climatic and market realities, their ability to innovate and maintain quality could determine whether the current stabilization marks the start of a more sustainable future for the continent’s centuries-old wine tradition.
Source: Vinetur