The global vine and wine sector navigated another turbulent year in 2024, according to The International Organisation of Vine and Wine (OIV), shaped by climate adversity, economic instability, and shifting consumer behaviors.
Despite strong headwinds, the industry managed to preserve its value, primarily through elevated average prices—although this did little to counterbalance the growing strain on producers and traditional wine markets.
Vineyard Surface Area Shrinks for Fourth Year
The world's vineyard surface area declined by 0.6% in 2024, reaching 7.1 million hectares. This marks the fourth consecutive year of contraction, reflecting a broader structural adjustment in global viticulture. Removals have been observed across major wine-producing nations in both the Northern and Southern Hemispheres, affecting grapes grown for all purposes—wine, table, raisins, and juice.
The continued reduction in vineyard area suggests a long-term rebalancing in response to declining global wine consumption and mounting economic pressures on growers.
Production Drops to Lowest in Over Six Decades
Extreme weather events and persistent disease pressure were the defining agricultural challenges of 2024. These conditions pushed global wine production to just 225.8 million hectolitres, representing a 4.8% drop compared to 2023. This is the lowest level recorded in over 60 years, reflecting a worrying trend of climate-induced volatility in wine-growing regions.
Europe, particularly southern countries such as Italy, Spain, and Greece, saw substantial declines due to spring frosts, hailstorms, and fungal diseases. The Southern Hemisphere faced similar challenges, from drought in Chile to flooding in New Zealand.
Consumption Continues to Slide
Global wine consumption is estimated to have fallen to 214.2 million hectolitres, a 3.3% decline from 2023, which was already a subdued year. The decrease is largely attributed to changing consumer preferences, high retail prices, and economic uncertainty, particularly in traditional markets like France, Germany, and the UK. Health-conscious younger generations and tightening household budgets further contributed to this drop.
Nevertheless, a few regions demonstrated resilience. The U.S. market, while not immune to global trends, maintained moderate demand, while parts of Asia—particularly China and South Korea—showed signs of gradual recovery.
Trade Volumes Stagnant but Values Hold Strong
In international wine trade, 2024 echoed the trends of the prior year. Global export volume held at 99.8 million hectolitres, equal to 2023 but 5% below the five-year average. Yet, the trade value held firm at 35.9 billion euros, supported by a record-high average export price of 3.60 EUR/litre, mirroring 2023.
Producers in premium wine segments, especially those from France, Italy, and New Zealand, benefited most from this price resilience. However, emerging and bulk wine exporters faced tighter margins and market access challenges.
Conclusion: A Sector in Transition
The wine industry in 2024 stood at a crossroads. Shrinking vineyard acreage, historic production lows, and declining consumption paint a sobering picture. Yet, the ability of the sector to maintain its value through strategic pricing and premium positioning shows its enduring strength and adaptability. Going forward, sustainability, climate resilience, and consumer engagement will be critical for revitalizing growth and ensuring the future of global wine.
Source: OIV