European wine production reaches 144 million hectoliters in 2024

The European wine sector is bracing for a challenging 2024, as reported by Copa-Cogeca, the European Union's organization representing farmers and agri-food cooperatives. The report, published on Thursday, November 14, highlights a projected total production of 144 million hectoliters of wine and must. This marks a 3% drop compared to the previous year and falls 10% below the five-year average. The decline underscores the persistent impact of adverse weather conditions and economic pressures affecting key wine regions across the EU.

Italy remains the largest wine producer in Europe, with an estimated output of 41 million hectoliters, representing a 7% increase from 2023. Despite this rise, production is still 12% under the five-year average. The Italian harvest faced geographical disparities: northern regions experienced heavy rains and hailstorms in the spring, requiring extensive vineyard maintenance, while the south suffered from severe drought. Scattered August rains failed to alleviate the structural water shortage, pushing harvest dates earlier. Despite these obstacles, the quality of the 2024 vintage is expected to be high, especially compared to 2023, which saw widespread vineyard damage from downy mildew.

Spain, the second-largest producer, saw a significant increase of 18%, bringing production to 38.1 million hectoliters. This growth was driven mainly by Castilla-La Mancha, which posted a 23% rise in output compared to the previous year. Nevertheless, other regions like Catalonia, Valencia, Aragon, and Murcia struggled with extreme water scarcity, maintaining or even reducing their production levels relative to 2023. The ongoing drought has accelerated harvest timelines, with some areas beginning as early as mid-July, a pattern increasingly attributed to climate change.

France, however, experienced a steep decline, with production expected to reach 37.4 million hectoliters, a 22% drop from 2023. A cold and wet spring disrupted flowering, leading to "coulure" and "millerandage." Additionally, frost, hail, and mildew compounded the difficulties. New vineyard uprooting policies have yet to impact production significantly but are projected to do so by 2025, particularly in Bordeaux. Ludovic Roux, president of the Vignerons Coopérateurs d'Occitanie, noted that these uprooting measures aim to align supply with demand, but temporary support measures are still necessary.

Germany reported an 8.7% decrease in production, with certain regions hit by spring frosts and excessive rainfall, most notably Saxony and Saale-Unstrut, where yields fell to just 20% of their potential. Despite reduced volumes, the quality of the harvest is high, thanks to prolonged ripening and abundant mineral reserves in the vines. Christian Schwörer, secretary-general of the German Winegrowers' Association (DWV), expressed optimism, emphasizing the growing appeal of German white wines, which align with current consumer preferences.

Other European countries like Portugal, Austria, Romania, and the Netherlands also reported significant declines. Portugal's production fell by 8% to 6.9 million hectoliters. Austria saw a 19% reduction, impacted by spring frost and heavy June rains, totaling 1.87 million hectoliters. Romania's production plummeted by 25%, and the Netherlands, though a minor producer, experienced a 45% drop to just 7,000 hectoliters.

Economic conditions have compounded the challenges facing the wine sector. Rising inflation and increased costs across the supply chain, from glass to transportation and fertilizers, have driven up production expenses. Higher credit costs have further strained financial resources, complicating essential investments. Crisis measures implemented in some EU member states have provided temporary relief, but the market remains fragile. Weak domestic demand has heightened the importance of export markets, making international promotion a crucial strategy for market stabilization.

Luca Rigotti, president of Copa-Cogeca's wine working group, voiced concerns over rising production costs and complex international markets. However, he praised the resilience and entrepreneurial spirit of European winemakers. The 2024 campaign has underscored the sector's adaptability amid an increasingly unpredictable environment, as winemakers balance climate challenges with economic pressures. Yet, the strategies in place offer a glimmer of hope for the future of European wine.