Recent patterns in world vineyard area, wine production and wine consumption

The International Organisation of Vine and Wine (OIV) recently released its annual world industry summary: State of the World Vine and Wine Sector in 2024. There are always parts of it that seem of particular interest, and I will look at three of these here.

Let’s start with recent changes in the world’s vineyard surface area, which are shown in the first graph (taken from the report).

As you can see, this has been decreasing for quite some time, from a high in 2003. It is currently c. 90% of its recent high. (Note that the OIV graphs never have zero as their bottom axis, which looks somewhat misleading to me.) As has been repeatedly noted in the wine-industry literature, vineyard area is much larger than can be supported by the current wine consumption, and so the decrease in area will presumably continue for quite some time yet.

Obviously, wine production is related to vineyard surface area. However, production has not shown a similar continuous decline, as illustrated in the next graph (taken from the report).

The graph shows that, since 2003, global wine production has varied up and down around an average of c. 270 mhl (million hectoliters). This sounds like a classic case of over-production (the same amount of wine coming from a decreasing area). This has lead to a dramatic decrease in production over the past couple of years, so that 2024 production was only c. 75% of the 2018 peak (and that peak was the same as for 2003).

Note also that the 2022 production was c. 90% of the 2003 high, as would be expected from the decreasing vineyard surface area; so, we need to look for another cause of the decline since 2022. The most obvious place to look for this would be wine consumption, as illustrated in the next graph (taken from the report).

This shows that the recent high-point for consumption was during the decade from 2007 to 2017, when it varied around 245 mhl (million hectoliters). Since then, it has been all downhill, so that the 2024 level was c. 90% of the 2017 high.

More importantly, there has been a dramatic decrease in consumption since 2021. So, the decrease by the producers has clearly been a response to the behaviour of the consumers. Notably, it has been reported that global wine consumption is back to 1961 levels, which should be a wake-up call for the industry.

We can also consider which countries have been contributing to these patterns. Here, 51% of the world vineyard area lies in just five countries: Spain, France, China, Italy and Turkey (in decreasing order). So, these are the ones that will be most affected by the decline in the wine industry.

The pattern for production as reported by the OIV excludes juices and musts, and so wine production does not follow the vineyard area pattern. Here, 58% of the world wine production comes from just four countries: Italy, France, Spain and the USA (in decreasing order).

Wine consumption, on the other hand, is somewhat different. Here, 51% of wine consumption occurs in five countries: the USA, France, Italy, Germany and the United Kingdom. This pattern is obviously related to population size. However, France and Italy do produce a lot of wine because their people drink a lot of it. The same cannot be said of the USA, Germany and the UK, which need to import a lot of the stuff.

This importation fact is currently riling the President of the USA, who wants to tax the imported booze even more than it has been in the past (How American alcohol importers are adapting to the tariff rollercoaster). Indeed, in the above graph we can look at US wine consumption over the past century or so (from: the Wine Institute). There was a notable dip during the second half of the 1980s, but otherwise it has continued upwards until 2022 (and 2023 also continued downwards — not shown).

Apparently, the President’s idea is that the USA can produce all of its own wine needs. This seems unlikely, given recent patterns in grape crush in California, as shown in the next graph (from: Lightest crop in 20 years). The issue here is whether the crush should be increased or decreased for the good of the California wine business (How bad is wine’s oversupply problem?).

On a different note, China is an interesting part of the global wine industry, and potentially an important one given its population size (2025: 17% of the world total). Here, both production and consumption have decreased from a peak in c. 2012–2013, as shown in the next graph (from: What’s happened to the wine market in China?).

Indeed, China’s share of world wine production by volume was 5.5% in 2012 but was 0.8% in 2022; and its share of world wine consumption was 7.5% in 2012 but was 2.4% in 2022. These are pretty serious drops, which the wine industry needs to take note of. Moreover, wine’s share of China’s alcohol consumption was 4.6% in 2012 but was only 1.5% in 2022 (grain-based drinks dominate, including beer).

Clearly, the wine industry will need to look to other populous countries, like India (Which wine regions are finding success in India, and why?). The USA apparently need not look anywhere, just at the moment (How America ruined its enviable position in global drinks culture).

So, there you have it. Things are on the downward path in the world wine industry. This is not news to you, but now I have put some numbers on it.