The wine industry is facing a perfect storm of challenges, with health concerns, economic factors, and environmental extremes driving down consumption worldwide. The International Organisation of Vine and Wine (OIV) has reported that global wine sales fell by 3.3 percent in 2024 to 214.2 million hectolitres, the lowest level since 1961. The OIV has stated that the decline in wine consumption is a concern for the industry, as it is facing a significant loss in revenue. The report also highlighted that the main trade body has seen a 12 percent fall in overall consumption since 2019-2020. During this period, the consumer paid about 30 percent more for a bottle of wine. The United States, the world’s top wine market, saw a 5.8 percent fall in consumption to 33.3 million hectolitres. This is attributed to the impact of US tariffs, even though they are temporarily suspended. The OIV stated that these tariffs could become “another bomb” for the wine industry. In Europe, which accounts for nearly half of the world’s wine sales, consumption fell by 2.8 percent last year. Even in France, one of the key global producers, there was a 3.6 percent decrease in wine consumption. However, it’s worth noting that some markets such as Spain and Portugal did experience an increase in wine consumption. Italy was the world’s top producer, with 44 million hectolitres of wine produced, and it is also the largest wine exporter. The increase in production was largely due to the popularity of sparkling wines like Prosecco. However, the country’s wine production fell by 23 percent in France, its lowest level since 1957. The OIV attributed the decline in production to environmental extremes such as above-average rainfall in some key regions and droughts in others. The US wine output fell by 17.2 percent to 21.1 million hectolitres, mainly due to extreme heat. Some industry players are warning of a “generational” decline in drinking. Nicolas, a French retail chain, stated:

“People do not drink in a festive way anymore and young people consume less than their parents,”

but added that:

“people drink less, but better” and so are ready to spend more.

The OIV could not predict whether wine consumption will increase again and the wine industry is facing significant challenges. However, there is hope that wine consumption may rise in the future, as people are becoming more willing to spend on higher-quality wine. The key statistics from the OIV report are as follows:

1. Global wine sales fell by 3.3 percent to 214.2 million hectolitres in 2024.
2. The lowest sales figure since 1961, when sales were 213.6 million hl.
3. Production fell by 4.8 percent to 225.8 million hl in 2024, the lowest level in over 60 years.
4. The consumer paid about 30 percent more for a bottle of wine since 2019-2020.
5. The overall consumption of wine has fallen by 12 percent since 2019-2020.

The data is also broken down by region:

The OIV report has raised concerns about the future of the wine industry, but there is also hope that wine consumption may rise in the future. As people become more willing to spend on higher-quality wine, there is a possibility that wine consumption may increase again. However, the industry is facing significant challenges, and it is unclear whether wine consumption will return to its previous levels.