Global wine consumption has hit its lowest record ever since 1996 to 221 million hectoliters, down by 2.6% over 2022, as a result of inflation and high production costs, according to the latest data released by International Organisation of Vine and Wine (OIV).
The decline in global wine consumption has followed a relatively steady trajectory since 2018, exacerbated by China’s dwindling wine consumption each year.
Since 2018, China’s wine consumption has been dropping by an averaging of 2 mhl annually. It has played a central role in driving down global consumption figures, according to OIV.
China’s wine consumption plummeted by 24.7% in 2023, totalling 6.8 mhl, down by 61.36% compared with the consumption volume recorded in 2018 (17.6 mhl).
This makes the country the world’s ninth biggest wine consumer.
The broader downturn in global wine consumption, as reported by the OIV, stems primarily from stringent lockdown measures imposed during the COVID-19 pandemic. These restrictions severely affected major wine markets beginning in 2020 and continued to impact them throughout the pandemic. However, 2021 saw a brief resurgence in wine consumption following the easing of pandemic restrictions, the reopening of the hospitality sector (HoReCa), and the return of social gatherings and celebrations, which boosted demand across many countries.
Nevertheless, the situation deteriorated in 2022 due to geopolitical tensions, particularly the conflict in Ukraine, and subsequent energy crises, which disrupted the global supply chain. This led to increased production and distribution costs, causing wine prices to spike and dampening consumer demand.
Amidst this complex economic landscape marked by global inflationary pressures, major wine markets faced notable declines in 2023.
In the USA, the largest wine market globally, consumption also decreased by 3.0% in 2023, reaching 33.3 mhl.
EU also recorded a marginal decrease of 1.8% to 107 mhl, which still accounts for 48% of the world’s consumption.
Conversely, Japan, the second-largest consumer in Asia, experienced an increase of 2.1% from 2022, reaching 3.2 mhl. This volume is, however, 4.2% below its last five-year average.
Global wine production at the same also experienced sharp falls. In 2023, global wine production is estimated at 237 mhl, marking a significant decrease of nearly 25 mhl (-9.6%) compared to 2022. This represents the lowest volume since 1961 (214 mhl).
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