The global bulk wine market remained subdued through April and into early May as rising production costs, inflationary pressure, and weakening consumer demand continued to limit buying activity, according to Ciatti Company’s May Global Market Report.
The report said ongoing economic uncertainty, combined with geopolitical tensions linked to the war in Iran, has reinforced caution among retailers, importers, and distributors across major wine markets.
Ciatti noted that higher costs across several key sectors — including fuel, transportation, fertilizer, and logistics — have significantly increased operational pressure for wineries and growers worldwide. In many countries, inflation remains elevated, forcing central banks to maintain higher interest rates and creating additional strain on businesses already facing weaker consumer spending.
As a result, much of the global bulk wine trade has remained largely static despite the completion of the 2026 harvest across Southern Hemisphere producing countries. Producers in regions such as Chile, New Zealand, South Africa, and Australia are now beginning to present samples of the new vintage to buyers, but market activity has so far remained cautious.
The coming weeks are expected to be particularly important for growers and wineries as pricing negotiations for the 2026 vintage accelerate. Many producers continue to hold significant inventories from previous harvests, making the level of buyer interest in new wines critical for determining how active the market will become later in the year.
According to the report, the response from buyers during this early phase of the campaign will offer a clearer indication of confidence levels within the global wine trade. Suppliers are hoping that smaller global harvests in recent vintages will eventually help rebalance inventories and support pricing stability.
Ciatti also referenced the International Organisation of Vine and Wine’s State of the World Wine Sector in 2025 report, which estimated global wine production at 227 million hectoliters last year. Although production was slightly above 2024 levels by 0.6%, recent vintages remain among the smallest recorded in decades, helping reduce some excess inventories and supporting grape and bulk wine prices over the past year.
However, the more serious challenge for the industry continues to be declining wine consumption. The OIV estimated that global wine consumption in 2025 fell by 2.7% compared with 2024 and stood 14% below 2018 levels. Among the world’s ten largest wine-consuming countries, only Portugal recorded growth, increasing consumption by 5.6%. Meanwhile, Australia saw a 2.2% decline and China experienced a sharp 13% drop.
The slowdown in consumption has significantly altered the balance of power between suppliers and buyers. Retailers and distributors facing their own cost pressures remain highly price-sensitive and are increasingly aware that available inventories still exceed demand in many parts of the market. This has reduced urgency among buyers and intensified competition among producers seeking to secure contracts.
Ciatti said the softer market environment is also encouraging experimentation within the industry as producers attempt to adapt to shifting consumer preferences. Growth continues in low- and no-alcohol wine categories, as well as wine-based ready-to-drink beverages, although both segments remain relatively small compared to the broader global beverage market dominated by spirits and malt-based RTDs.
Pricing pressure remains a major concern across multiple regions. In some markets, consumers are seeing lower shelf prices as premium wines are redirected into bulk channels and retailers aggressively promote private-label and discounted brands. While lower retail pricing may help maintain short-term sales volumes, the report warned that sustained price compression could become financially unsustainable for many wineries and grape growers.
Industry strain is already becoming visible in several producing regions through delayed payments, vineyard mothballing, and vine removals as businesses attempt to manage oversupply and protect profitability. Ciatti added that its latest pricing grid includes updated bulk wine values in both local currencies and U.S. dollars, along with newly released 2026 vintage pricing data for Chile, New Zealand, and South Africa.
Source: Vinetur