On November 7, 2023, the International Organization of Vine and Wine (OIV) reported that global wine production is projected to decline to its lowest level in six decades in the year 2023. This decline is primarily attributed to poor harvests in major wine-producing regions in both the Southern Hemisphere and Europe, including Greece.
According to initial projections by the OIV, world wine production, excluding juices and musts, is estimated to fall within the range of 241.7 million to 246.6 million hectoliters (mhl), with a mid-range estimate of 244.1 mhl. This represents a 7% decrease compared to the previous year and would mark the lowest output since 1961 when it had reached a mere 214 mhl. For context, one hectoliter is equivalent to approximately 133 standard wine bottles.
The OIV explained, “This negative scenario can be attributed to significant declines in major wine-producing countries in both hemispheres.” In the Southern Hemisphere, countries like Australia, Argentina, Chile, South Africa, and Brazil have experienced year-over-year production variations ranging from -10% to -30%. In the Northern Hemisphere, Italy, Spain, and Greece have been the hardest hit due to adverse climatic conditions during the growing season.
Italy, a historically prominent wine producer, is expected to witness a 12% reduction in its wine production, dropping to 44 mhl. This output level is the lowest Italy has seen since the challenging harvest of 2017.
The global wine industry faces a daunting year ahead, with substantial drops in wine production driven by unfavorable climatic conditions in key regions. The impact of these reduced production levels on the industry’s dynamics remains to be seen, with potential consequences for supply and demand in the global wine market.
