In 2023, wine consumption in Europe plummeted to less than 15 billion liters, the lowest level recorded since 1951, according to the latest data from the International Organisation of Vine and Wine (OIV). This marks a stark contrast to the peak consumption in 1975, when the continent consumed over 20 billion liters annually.
The decline in European wine consumption has been gradual over the past several decades. After surpassing the 20 billion-liter mark in the mid-1970s, consumption began to fall, dipping below 15 billion liters by 1999. Despite a brief increase in the early 2000s, consumption has continued to decline, ultimately reaching its current low point in 2023.
Experts attribute this downward trend to demographic shifts and changing preferences among younger generations. In particular, members of Generation Z are increasingly turning to lower-alcohol and non-alcoholic beverages, viewing wine as a dated, old-fashioned choice. This shift, combined with the aging of traditional wine drinkers, has contributed to the overall decline in wine consumption across Europe.
Despite the drop in consumption, Europe remains the largest wine market globally, accounting for 60.5% of worldwide wine consumption. This dominance underscores the region’s continued influence on global wine trends, which have also shown signs of decline in recent years.
Decline in Asia Driven by China’s Economic Challenges
Wine consumption trends in Asia have mirrored the broader global decline, with China playing a central role in shaping the region’s market. Since 1951, Asia’s wine consumption has experienced growth punctuated by fluctuations. From 2002 onwards, wine consumption in the region surged, reaching a peak between 25 and 30 million hectoliters in 2017, making Asia the third-largest wine market by volume, behind Europe and North America.
China’s wine market saw rapid growth during this period, fueled by the country’s accession to the World Trade Organization (WTO) in 2001. The reduction of wine tariffs from 65% to 14% helped imported wines flood the market, while China’s burgeoning middle class embraced wine as a symbol of modernity and wealth.
However, wine consumption in Asia, particularly in China, began to show signs of slowing after 2017. Economic challenges, including factory shutdowns related to pollution crackdowns, the US-China trade war, and COVID-19 lockdowns, took a toll on the market. Additionally, a 2012 government ban on extravagant spending, a part of President Xi Jinping’s anti-corruption campaign, dampened demand for fine wines, particularly at business banquets.
The decline in Chinese wine consumption has been sharp. Since 2018, China’s annual wine consumption has decreased by an average of 260 million bottles. In 2023, wine consumption in China fell to 6.8 million hectoliters, a 61% drop compared to 2018, though the country still accounts for nearly half of Asia’s total wine consumption.
Despite these setbacks, China remains the largest wine market in Asia, highlighting the significant impact of economic and political factors on global wine trends.
Conclusion
The data from the OIV highlights a broader global trend of declining wine consumption, particularly in Europe and Asia. While Europe continues to be the dominant market for wine, the rise of alternative alcoholic beverages and changing generational preferences have reshaped the landscape. In Asia, China’s economic and policy challenges have driven down wine consumption, which could have ripple effects on global wine markets in the years to come.
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