In 2023, the global wine production fell by 10% to arrive at 237.3 million hectolitres. Many prominent wine-producing countries faced a considerably hard year. France recaptured its spot as the top wine producer worldwide. Global wine consumption also saw a reduction, reaching 221 million hectolitres in 2023, marking a decrease of 2.6% when compared to 2022. Similarly, the total surface area of the world’s vineyards underwent a slight reduction of 0.5% in 2023, equaling 7.2 million hectares. A drop in both production and consumption has managed to maintain market equilibrium, despite triggering significant inflationary pressures.

John Barker, the director general at The International Organisation of Vine and Wine (OIV), unveiled the projections for the wine industry in 2024 today. (All the numbers provided here are preliminary estimates by the OIV.)

The total wine production worldwide saw a steep decline in 2023, with a fall of 10% from 2022, resulting in 237.3 million hectolitres (Mhl). This continues a trend that has been present for two decades. Back in 2004, globally, wine production had reached approximately 295 Mhl. Currently, it is about 20% lower.

The volume in 2023 is the lowest wine production since 1961. The picture varies from country to country, but most big wine producers saw a decline. Some countries experienced very dramatic declines.

France regained its position as the world’s biggest wine producer and actually increased the volume by 4%. However, both Italy and Spain, the number two and three, saw very significant reductions in wine production, minus 23% and 21% respectively.

The decline is mainly due to the extreme climate conditions that several countries experienced, including rains, floods, fires, etc., and the ensuing problems with vineyard diseases.

World wine production 2023

• France
• Italy
• Spain
• USA
• Portugal
• Chile
• Australia
• South Africa
• Argentina
• Germany

Note that the production volume fluctuates annually based on factors like weather, industry trends, and global events. Hence, it’s always good to stay updated on the world’s wine map.

World wine production, top countries, 2023

The world’s total acreage of vineyards saw a slight drop, decrementing by 0.5% to 7.2 million hectares. Although a loss of 0.5% may be seen as insignificant, the decrease in “wine production capacity” is a trend that has been persistent for more than two decades since reaching a peak in 2003. At that time, the global vineyard acreage was just a bit above 7.8 million hectares. Almost 8% has been lost since then.

Spain holds its position as the leading country with almost one million hectares. France follows in the second position while China comes third and Italy holds the fourth position.

Here are the world’s top ten countries with the largest vineyard area:

The EU countries have 45% of the world’s total acreage and five of the top ten countries. The six biggest countries represent 56% of the total.

It should be noted that these numbers include all vineyards, including those producing grapes for other uses than wine, such as raisins and fruit juice.

World vineyard surface area 2023

The world’s wine consumption follows the same negative trend: global wine consumption declined in 2023.

The global consumption of wine was recorded at 221 million hectolitres (Mhl) in 2023. This demonstrates a 2.6% decrease compared to the previous year, 2022. An extended observation reveals a long-standing pattern of reduced intake; the peak consumption was noted in 2007 with around 250 Mhl, indicating that the current consumption is a significant 12% plummet since then.

The International Organisation of Vine and Wine (OIV) surmised this shrink in global wine consumption to the influence of COVID-19 pandemic and the prevailing inflation, causing an upswing in consumer prices.

Global Wine Consumption 2023

In examining wine consumption trends in various countries, most of them have experienced only slight alterations. However, in China, there was a staggering one-fourth decrease in wine consumption. Conversely, in Romania, an increase by one-fifth was observed.

The USA continues to lead the globe as the largest wine consumer, closely trailed by the prominent European wine producers – France, Italy, and Germany. The UK, Spain, and Russia also make up the top wine-consuming nations.

Major countries in world wine consumption, 2023

However, challenges persist for the world wine industry.

In a comparison between 2023 and 2022, wine exports experienced a reduction in both quantity (-6.3%) and value (-4.7%).

The OIV keeps track of an intriguing metric known as “the market internationalisation index”. This index illustrates the proportion of wine consumed outside the country of its production. In other terms, it’s a difference perspective on domestic consumption versus exports, serving as a reflection of wine globalization. This index also serves as a message to wine producers, emphasizing the growing importance of export markets.

In recent years, the market internationalisation index has experienced a significant increase, indicating that a larger volume of wine is being consumed outside its local market. In the year 2000, this index was roughly at 27%, with over two-thirds of wine being consumed on its “home market”. By 2021, this index had climbed to 48%, implying that nearly half of all wine is consumed in a country different from its origin.

However, the index has seen a decline in the last two years, down to 45% in 2023. The reason for this decrease isn’t immediately clear. Factors like smaller harvests or inflation might impact both domestic and international markets, so the explanation likely isn’t found there. The OIV suggests one potential explanation could be destocking, notably in the North American market. It’s possible that US importers, in particular, over-purchased in the initial years of the COVID-19 pandemic (2020 and 2021) and are now releasing this stock into the market, reducing their need to buy from abroad. We’ll see what unfolds in the following years.

The current statistics present a grim scenario for the global wine industry in 2023, yet there are glimmers of hope.

The substantial decrease in wine production in 2023 could have indicated a potential scarcity, however, the simultaneous decline in consumption counteracts this threat. The scales of production and consumption continue to be balanced, with production surpassing consumption by 5-10%. This excess is necessary to meet the demand for different usages such as producing vinegar and distillation.

From the perspective of producers, the evolution of prices has been favorable. The average export price of wine hit an all-time high of 3.62 euros per litre, marking a 2% increase from 2022. Certain countries have performed remarkably well. Both France and the USA have nearly doubled the average export price over a decade. For France, the price currently stands at 9.4 euro/litre, whereas for the USA, it is 5.5 euro/litre. Most of the other major exporters have experienced a similar trend over the past decade, with Canada being the exception.

Obviously, this exemplifies the inflationary tendencies impacting the wine industry. But naturally, this isn’t great news for the consumers.

—Per Karlsson