Croatia has experienced a significant surge in wine prices, leading Europe with a 52% increase over the past four years, as reported by Eurostat.
This rise is notably higher than the EU average wine price increase of 7% during the same period.
Neighboring countries have also seen substantial hikes: Cyprus at 48%, Hungary at 45%, and both Slovenia and Romania at 32%.
Despite these price increases, Croatian winemakers reported a net profit of €5.7 million in 2023, marking a 141.6% annual increase. The industry comprised 275 businesses employing 1,542 workers, generating €141.9 million in total revenue—a 12.9% rise from the previous year. Total expenditures also grew by 9.9%, reaching €134.4 million.
Globally, wine production is projected to fall to its lowest level since 1961, with the International Organisation of Vine and Wine (OIV) estimating a decline to between 227 and 235 million hectolitres. This downturn is attributed to extreme weather conditions affecting vineyard productivity.
France, the largest wine producer in 2023, is expected to see a 23% decrease in production this year. In contrast, Italy is anticipated to recover slightly and reclaim the top spot. Other countries, including the United States and several Eastern European nations like Hungary, Georgia, and Moldova, may achieve average or above-average production due to favorable weather conditions.
In addition to wine, Europe has witnessed significant price increases in milk and vegetables, though Croatia does not lead in these categories.
Despite global challenges, Croatia's wine industry has demonstrated resilience, leveraging strong domestic and international demand to navigate the evolving market landscape.
Source: Croatia Week