In 2023, the global wine market experienced its lowest production since 1961, with a drop of 10% to 237.3 million hectoliters, according to the OIV. This was mainly due to extreme climate events in major wine producing countries which decimated crops. At the same time, global wine consumption decreased by 2%, creating more of a balanced situation.
“We see some equilibrium in global supply and demand, but this could vary by country or regional level,” reported Jon Barker, Director General of the OIV (International Organization of Vine and Wine headquartered in France), in a webinar earlier today.
However, he cautioned that the extreme environmental events, such as heat, drought, frost, wildfires, and extreme rain leading to flooding, are a continuing concern to global wine production.
“We know that the grape vine is strongly effected by climate changes,” he said. “However, we know efforts with sustainability have progressed, and the OIV will continue to play an active role in the positive development of sustainability systems.”
France Regains Its Place as #1 Global Wine Producer
There was some reshuffling between the 10 top wine producing countries in 2023, with France moving into the number one position, followed by Italy, Spain, the U.S. and Chile in the top 5 positions (see graph below).
U.S. Remains Top Consuming Wine Nation
The OIV report also validated that the U.S. remained in first position as the largest wine consuming nation by volume. This makes the U.S. very important to larger wine producing and export countries, because the U.S. doesn’t produce enough wine to meet the consumption needs of its population. At the same time, U.S. consumers enjoy trying wine from other countries.
Other top wine consuming nations by volume after the U.S. are France, Italy, Germany and the U.K. China has now fallen to the 9th largest wine consuming nation. (see chart)
Interestingly when analyzed from a per capita basis, the U.S. ranks 15th in wine consumption per capita due to its large population, whereas Portugal ranks #1 in per capita wine consumption, due to its smaller population and wine being an ingrained part of its culture and lifestyle.
OIV Celebrates 100 Years of Wine Research
Jon Barker concluded the webinar with a reminder that the OIV was celebrating its 100th year of existence, and expressed hope that the global wine industry would continue to thrive for another one hundred years. The OIV was established in Paris in 1924.
“OIV is celebrating our centenary year. We are aware of challenges, but know there are opportunities in the global wine industry with continued innovation, communication, research and other activities….. The OIV looks forward to the next 100 years and beyond,” he stated.