
OIV Director General addressing the Press Conference last week
OIV Director General addressing the Press Conference last week
Posted: Thursday, 24 April 2025 12:19
The Director General of the OIV, John Barker presented the latest data on the World Vine and Wine Sector 2024-25 at a Press Conference on April 15, highlighting key trends in wine production, consumption, and international trade and vineyard surface area. Every year, this data is presented twice- once in September- October as the first estimates and then in mid-April with final figures. This Report is based on the data and statistics provided by the member states.
Worldwide consumption of wine fell in 2024 to its lowest level in more than 60 years. The recent turmoil due the US President Trump threatening higher taxes is the latest nail in the head for wine consumption, The International Organisation of Vine and Wine (OIV) which gives out the most authentic information, based on the data supplied by the member states including India, says that 2024 sales fell 3.3% from the previous year to 214.2m hL This would be the lowest sales figure since 1961, when sales were 213.6m hL. Production is also at its lowest level in more than 60 years, having fallen 4.8% in 2024 to 225.8m hL.
“Beyond the short-term economic and geopolitical disruptions, it is important to consider the structural, long-term factors also contributing to the observed decline in wine consumption” says OIV, adding that the consumer is now paying about 30% more for a bottle now than in 2019-20 and overall consumption has fallen by 12% since then with the US. The biggest consumer of wine in the world showed a decrease of 5.8% to 33.3mhL.
Sales in China remain below pre-Covid levels. In Europe which accounts for nearly half of worldwide sales, consumption fell 2.8% last year. In France, one of the key global producers, 3.6% less wine was consumed last year. Spain and Portugal were the exceptions where consumption increased.
Italy was the world’s top producer, thanks to a jump in sales due to sparkling wines like Prosecco raising the production to 44m hL while France’s output fell 23% to 36.1m hL, its lowest level since 1957.
Several other reasons are advanced for the decrease in consumption:
1. The decline is attributed to higher prices because of inflation and the costs reflecting post-Covid higher prices since there could not be price increases during Covid.
2. Production has been lower due to climate change and Global warming causing forest fires, and untimely frosts killing crops . The production had been hit by environmental extremes such as above-average rainfall in some regions and droughts in others.
3. Lower consumption is due to several recent controversial reports suggesting that any amount of wine or alcohol is cancer-causing. There has been a spate of Studies ostensibly sponsored by various anti- alcohol organizations, prejudicial to the minds of millennials and many wine drinkers in every country.
The vineyard surface area is also coming down. In 2024, the world’s vineyard surface area stood at 7.1 million hectares, marking a slight decrease of 0.6%, compared to 2023. This is the fourth consecutive year of shrinking vineyard surfaces globally. The trend is attributed to a reduction in vineyard surface across major vine-growing countries in both hemispheres, with only a few exceptions. The trend has been noted for all grape types, with wine grapes being affected the most.
India’s vineyard area has been significantly expanding in recent years, with an average annual growth rate of 4.5% since 2019. In 2024, the total area under vines is estimated to have reached 185 khA (this is the total area under vines and includes all categories including eating grapes and raisins). In India, 96% of grapes are grown in Maharashtra (71%) and Karnataka (25%). The consumption has been vacillating between the 8th and 9th position in the world in the last few years and India finds itself in the 9th spot again this year. However, a very small area of under 2% finds the grapes fermented for making wines.
Also Visit: OIV Report: Italy becomes biggest Wine Producer in 2024
Subhash Arora