Spain’s wine sector continues to face a challenging 2025/26 campaign, with lower production volumes, declining exports, and weaker domestic consumption shaping the market during the first eight months of the season.
New data published through INFOVI and analyzed by the Spanish Wine Interprofessional Organization reveals a broad slowdown across multiple areas of the Spanish wine industry.
According to the latest figures for March 2026, cumulative wine production between August 2025 and March 2026 reached 28.9 million hectoliters, representing a 7.1% decrease compared to the same period of the previous campaign.
When grape must is included, total production reached 33 million hectoliters, down 10.3% year-on-year. The sharpest decline came from grape must production itself, which fell by 27.3% to 4.2 million hectoliters.
Minimal Production Activity in March
Wine production activity during March was almost non-existent, totaling only 3,631 hectoliters for the month.
Most of the season’s accumulated production originated from wineries producing more than 1,000 hectoliters annually, although smaller producers also contributed to the overall figures. Small producers generated 610,555 hectoliters during the campaign, representing a 12.1% increase compared to the previous year.
By wine style, white wines continued to dominate production volumes among larger producers, accounting for 16.2 million hectoliters, while red and rosé wines reached 12 million hectoliters.
Castilla-La Mancha Maintains Dominance
Castilla-La Mancha remained Spain’s largest wine-producing region by a considerable margin.
The region accounted for 56% of all wine produced during the first eight months of the campaign and an impressive 85% of total grape must production. Its scale continues to make Castilla-La Mancha the central driver of Spain’s bulk wine and grape must industry.
Other important wine regions, including Catalonia and La Rioja, also remained major contributors to national stocks and production.
PDO Wines Continue to Lead Production
Expanded INFOVI data also provides insight into the breakdown of Spanish wine production by category.
Of the 28.2 million hectoliters produced by larger wineries:
- 10.4 million hectoliters were wines with a Protected Designation of Origin (PDO), representing 37% of total production.
- 9.5 million hectoliters were varietal wines, accounting for 34%.
- 5.5 million hectoliters were wines without any official designation, representing 19%.
- 2.9 million hectoliters corresponded to wines with a Protected Geographical Indication (PGI).
The figures highlight the continued importance of PDO wines within Spain’s production structure, particularly for premium and export-oriented segments.
Wine Stocks Decline Moderately
Ending stocks of unconcentrated wine and grape must stood at 41.4 million hectoliters as of March 31, 2026, a decrease of 4.5% compared to the previous year.
The total included 37.5 million hectoliters of wine and 3.85 million hectoliters of unconcentrated must.
Wine stocks declined by 4.4%, while must inventories fell by 5.3%.
Among operators producing more than 1,000 hectoliters and wholesalers, red and rosé wines represented 20.3 million hectoliters of stored stock, while white wines accounted for 17.2 million hectoliters.
PDO wines continued to dominate inventories, totaling 23.8 million hectoliters and representing 64% of total wine stocks. Varietal wines followed with 6.5 million hectoliters, wines without designation with 4.9 million hectoliters, and PGI wines with 2.4 million hectoliters.
Alternative Wine Uses Also Decline
The report also highlighted reduced industrial use of wine products during the campaign.
Between August 2025 and March 2026, approximately 685,962 hectoliters were used internally for the production of aromatized beverages, vermouths, and sangria, representing a decline of 12.5%.
Additionally:
- 381,475 hectoliters were sent to distilleries.
- 194,084 hectoliters were allocated to vinegar production.
These figures suggest softer demand across several secondary wine-related industries.
Domestic Wine Consumption Weakens
Estimated domestic wine consumption in Spain for the year ending March 2026 reached 9.3 million hectoliters, down 4.3% year-on-year.
Red and rosé wines experienced the sharpest decline, falling by 7.5% to 5.4 million hectoliters. Meanwhile, white wine consumption remained relatively stable, increasing slightly by 0.4% to 3.9 million hectoliters.
The contrasting trends reinforce broader market developments seen across Europe, where white wines and fresher styles continue gaining popularity among consumers.
During the same period, inflows of domestic wine into Spanish wineries increased by 7.1% to 2.1 million hectoliters, while outflows rose by 4.9% to nearly 2.93 million hectoliters.
Exports Continue to Struggle
Spain’s export performance also remained under pressure during the first seven months of the campaign.
According to INFOVI and data from the Spanish Tax Agency, wine export volumes fell by 7.7%, while export value declined by 6.9%.
Between August 2025 and February 2026, Spain exported approximately 10 million hectoliters of wine worth €1.58 billion.
February marked the fifth consecutive month of declines in both export volume and value, underlining the difficult international trading environment currently facing Spanish producers.
For the month alone, exports totaled approximately 1.4 million hectoliters and generated €212.5 million in revenue.
Spanish Wine Sector Faces a Difficult Market Environment
The latest figures paint a picture of a Spanish wine sector navigating multiple challenges simultaneously, including weaker production, softer domestic demand, and declining international sales.
While PDO wines continue to provide stability and white wine consumption shows modest resilience, the overall market environment remains difficult amid changing consumer preferences and increasing global competition.
As the campaign progresses, producers will likely continue focusing on inventory management, export recovery, and adapting to evolving market trends both within Spain and internationally.
Source: Vinetur