Impact of Climate Change on Global Wine Production

Extreme weather events, including heavy rainfall, storms, frost, and droughts, are significantly affecting wine production across the globe. This situation is further exacerbated by changing consumer behaviors, which are also negatively influencing wine production.

According to recent data from the International Organisation of Vine and Wine (OIV), global wine production in 2024 has dropped to its lowest level in over 60 years, reaching 225.8 million hectoliters. This figure represents a 4.8 percent decline compared to the previous year. The decline in production is attributed not only to climate change but also to economic factors and a decrease in consumer demand, which have led wine producers to adapt their practices accordingly.

In the European Union, wine production totaled 138.3 million hectoliters last year, marking a 3.5 percent decrease from 2023. Germany, the fourth-largest wine producer in Europe, reported a 9.8 percent drop, producing 7.8 million hectoliters. The OIV highlighted several extreme weather effects impacting production, including heavy rain, hail, late spring frosts, droughts, and subsequent pest infestations.

Despite being the largest wine-producing nation globally, Italy recorded an output of 44.1 million hectoliters, which, although an increase, still falls 6 percent below the five-year average. France, the second-largest producer, faced a significant decrease of 23.5 percent, yielding only 36.1 million hectoliters, the lowest production level since 1957. Spain, in third place, produced 31 million hectoliters, which is 11.1 percent lower than the five-year average.

Estimates for global wine consumption in 2024 suggest a decline to 214.2 million hectoliters, representing a 3.3 percent decrease and marking the lowest consumption since 1961. This ongoing trend is attributed to various factors, including short-term economic issues like inflation, alongside shifting lifestyles and changing social habits.

In the EU, wine consumption decreased by 2.8 percent compared to the previous year, totaling 103.6 million hectoliters, which corresponds to a 5.2 percent drop on a five-year average basis. Germany's consumption also fell, down 3 percent to 17.8 million hectoliters in 2024.

On the bright side, the value of global wine exports is forecasted to stabilize at approximately 35.9 billion euros for 2024, indicating only a slight decrease from the previous year. The average export price remains steady at 3.60 euros per liter. This stability in pricing is largely due to a growing trend towards higher-priced wines in recent years.