Wine consumption worldwide has plummeted, with 214.2 million hectolitres recorded in 2024, a decrease of 3.3% compared to the previous year. This marks the most significant drop in over six decades, with wine production also experiencing a decline of 4.8%.

Factors Contributing to the Decline

• The rise of health-conscious consumers
• Shifting drinking habits
• Economic stress and rising production costs
• Environmental pressures

These factors have led to a decline in wine consumption and production, with many regions experiencing significant decreases in wine production. For example, France saw a 3.5% drop in domestic wine consumption, while Spain and Portugal witnessed a slight increase in annual figures.

Global Wine Production: A Significant Decline

According to the International Organisation of Vine and Wine (OIV), the total area of vine cultivation reduced by 0.6% to 7.1 million hectares in 2024.

The Impact of Trade Wars

Trade wars and rising production costs have had a significant impact on the global wine industry. The average price per bottle has increased by 30% since 2019-20, with exports reaching 99.8 million hectolitres globally.

Competition from Other Beverages

Millennials and Gen Z consumers prefer cocktails, craft spirits, ready-to-drink mixes, and functional beverages over wine. Regular wine drinkers are also changing their wine-with-dinner habits, moving on from frequent consumption.

The Shift in Consumer Habits

The wine industry is also affected by internal challenges, with shifting consumer habits reshaping the market. Health consciousness, moderation, and changing social norms are tipped to be the key factors.

Examples of Declining Wine Consumption

• Australia: Monthly wine consumption among adults has declined by 50% between 2010 and 2023.
• UK: Wine consumption has seen a major decline in the UK, with 50% of consumers reducing their alcohol intake.

Overall, the decline in wine consumption and production is a complex issue with multiple factors at play.