In the face of persistent pessimism surrounding the global wine market, the International Organisation of Vine and Wine (OIV) delivered a rare note of optimism during its annual press conference on April 15. Addressing three major pillars—production, consumption, and trade—OIV Director General John Barker acknowledged the industry’s significant challenges while pointing to actionable opportunities that could steer the sector toward recovery.
Historic Low in Global Wine Production
According to the OIV, global wine production in 2024 fell to 226 million hectolitres—the lowest level recorded since 1961. Barker attributed this dramatic decline to the intensifying effects of climate change and increasingly unpredictable weather events. Major wine-producing countries were hit hard: France saw a 24% drop, Spain declined by 17%, and South Africa recorded a 16% decrease.
“Climate change is undeniably reshaping the global wine map,” Barker said. “Over time, it will affect not just yields but also the styles and geographical distribution of wine production. This reality is no longer in question—the challenge has been acknowledged.”
Despite the sobering data, Barker emphasized the potential for innovation. He called for the wine industry to adopt sustainable practices and invest in technologies that can mitigate environmental impacts.
“The opportunity is to position the wine sector as a role model of sustainability,” he stated, underlining the focus of the OIV’s new strategic plan.
Consumption Declines to Six-Decade Low
Mirroring the production slump, global wine consumption also dropped to 214 million hectolitres in 2024, the lowest since 1961. Barker highlighted a long-term trend of convergence in drinking habits: traditional wine-consuming regions in Europe and South America are drinking less, while growth in newer markets has not compensated for declines in major markets such as the United States and China.
Economic pressures—especially the lingering effects of post-COVID inflation, rising production costs, and reduced consumer purchasing power—have played a significant role. Geopolitical uncertainties further compound the downturn.
“These economic factors intersect with changing consumer behaviours, including generational shifts and lifestyle evolution,” Barker noted.
Still, he sees promise in evolving consumer preferences. “The opportunity lies in understanding today’s consumer,” he said. “Quality, authenticity, and heritage matter—but we must communicate on the consumer’s terms. The sector must renew its appeal to stimulate growth.”
Trade Remains a Bright Spot
In contrast to production and consumption, the global wine trade remained relatively stable. Export volumes held firm at 99.8 million hectolitres, while export value reached €35.9 billion—the third-highest ever recorded. The trend toward premiumisation continued, with the average export price rising to €3.60 per litre, a 30% increase since 2020. Bulk wine exports also showed resilience, with a 3.3% increase in volume and a 9.8% rise in value year-on-year.
“Trade is the lifeblood of the sector,” Barker asserted. “Every second bottle is consumed outside its country of origin. International wine trade is more than commerce—it is cultural exchange, knowledge-sharing, and a catalyst for cross-border investment.”
However, Barker warned of uncertainties ahead, including potential tariff changes and regulatory instability. He stressed that international cooperation and institutional support are vital to maintaining the sector’s momentum.
“Trade presents a significant opportunity, but it hinges on the stability and mutual trust fostered by international institutions. The OIV plays a key role in providing the data and coordination necessary to support its members.”
Path Forward
Despite daunting statistics, Barker’s message was clear: the wine industry has the tools, insight, and opportunity to adapt. Through sustainable innovation, a deeper understanding of today’s consumer, and a commitment to stable trade relations, the sector can chart a resilient course forward.
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