Jerry Jackson Global wine sales have dropped to their lowest levels in over 60 years, with demand falling by 3.3% in 2024, according to the International Organisation of Vine and Wine (OIV). The total sales reached 214.2 million hectolitres, a dramatic decrease from previous years. At the same time, global wine production saw a sharp decline of 4.8%, totaling 225.8 million hectolitres — the lowest level since the early 1960s. Factors such as extreme weather conditions, economic stress, and changing consumer habits have played a significant role in this downturn.
Global Wine Production Faces Major Setbacks
The global wine industry has faced several challenges, including extreme weather conditions such as droughts and heavy rain, which have greatly impacted production. As a result, 2024 marked the lowest global wine production since the 1960s, dropping by 4.8%. Among the countries hardest hit was France, historically one of the largest producers, where output decreased by nearly a quarter. On the other hand, Italy led global production with 44 million hectolitres, largely due to strong exports of prosecco, a sparkling wine. In the U.S., a 17.2% decline in production was attributed to severe heatwaves. The industry is now grappling with the consequences of these weather-related challenges.
Demand Declines Despite Higher Prices
While production has suffered, so too has demand. Since 2019, global wine consumption has fallen by 12%, despite prices rising by around 30%. This decline can be attributed to a shift in consumer behavior, particularly among younger generations. Many consumers are reducing their wine consumption, citing health concerns and lifestyle changes as the driving forces behind this trend. The U.S., the world’s largest wine market, experienced a 5.8% drop in consumption in 2024, contributing significantly to the global decline. In Europe, which accounts for nearly half of global wine sales, demand fell by 2.8%. France, traditionally a strong wine-consuming country, saw its consumption decrease by 3.6%, while Spain and Portugal stood out with slight increases in their consumption rates.
Changing Consumer Behavior: Younger Generations Drinking Less
One of the most striking trends in the global wine market is the generational divide in consumption patterns. Younger consumers are drinking far less wine than their parents, and this shift is expected to have long-term effects on the industry. According to French wine retailer Nicolas, the tradition of festive drinking is fading, with fewer younger consumers participating in celebratory occasions involving wine. Despite this, there is still a willingness among consumers to spend more on higher-quality wine, suggesting that those who do drink are opting for premium products over cheaper alternatives.
Political and Trade Barriers Add Uncertainty
Beyond shifting consumer habits and weather-related challenges, the wine industry is facing increased uncertainty due to political risks and trade barriers. Tariffs introduced by former U.S. President Donald Trump have created significant concerns for the global wine trade. These tariffs have disrupted established trade routes, and many industry experts are worried that this trend could continue to hamper international sales.
With no immediate signs of recovery, many experts believe the current slump in the global wine market may not be a temporary downturn but rather a deeper, long-term transformation. Changing economic conditions, cultural shifts, and evolving consumer preferences are likely to continue reshaping the wine industry. As the global market adjusts to these new realities, the question remains whether the wine industry can adapt to these challenges and regain its former stature.
The future of wine production and consumption looks uncertain, and industry stakeholders will need to closely monitor emerging trends and economic conditions to navigate the evolving landscape. This could mark a turning point for the global wine market, with lasting effects on how wine is produced, marketed, and consumed in the years to come.