Spain’s wine exports hit €2.98 billion despite 5% drop in volume

Spain's wine sector navigated a year of major contrasts in 2024, marked by reduced volumes, resilient export values, growing import dependence, and early signs of recovery in domestic consumption and production. According to the annual report published by Vinetur today, April 15, the Spanish wine industry remains in transition, balancing post-pandemic shifts, economic pressures, and long-term structural change.

Total export value reached €2.98 billion in 2024, a modest increase of 1.4% over the previous year, despite a 5% decline in volume to 1.94 billion liters. This gap between value and volume was mainly attributed to higher average prices, which rose to €1.54 per liter. Exporters focused on higher-margin bottled and sparkling wines while contending with limited availability following a historically short 2023 harvest. Bottled white wines showed strong early performance but faced stock constraints later, while red wines stabilized with price support.

Bulk wine accounted for more than half of all exports by volume. Though value grew slightly, volume fell by 7.1%, reflecting supply challenges and rising prices. Sparkling wines closed the year with a 1.1% increase in value and a 9.1% drop in volume, as average prices surged. Cava, representing most of the sparkling segment, declined sharply in volume, while other sparkling wines recorded double-digit growth in both value and volume.

The United Kingdom remained Spain's top export destination for packaged wine, with notable growth in North America, especially the United States, where Spain became the fourth-largest supplier by value. Bulk exports shifted as Germany overtook France as the primary buyer, and Italy recorded the largest increase in purchases.

Imports, driven by a supply gap from the 2023 harvest, reached unprecedented volumes. Between January and November, Spain imported 857,000 hectoliters of wine, up 71% from 2023, while the average price dropped 43% to €3.20 per liter. Bulk wine accounted for 55% of this volume, with imports up 195%. Despite the high volume, overall import value declined slightly due to the lower average prices. The surge in imports allowed Spanish producers to maintain supply in entry-level market segments.

Domestic wine consumption in 2024 grew an estimated 2.5% to 9.87 million hectoliters, the highest level since late 2022. However, the recovery was uneven across sales channels. Food retail volumes remained flat while value rose due to higher prices. Hospitality saw a slight drop in volume and value, likely tied to consumer sensitivity to inflation. Online and direct sales channels expanded by 5%, pointing to shifts in consumer behavior. Sparkling and white wines continued gaining ground over reds, with white wine consumption up 4% and red/rosé down 1.7%. Wines with PDO still dominate value share but lost ground in volume, especially in hospitality.

Spain's wine production saw a marked rebound in the 2024/25 campaign. After the drought-hit 2023/24 harvest yielded just 28.45 million hectoliters of wine, early data shows a production increase of at least 9.6%, bringing total wine and must output closer to 36-37 million hectoliters. The growth was led by white wines, which saw a 20.5% increase in volume through January. Castilla-La Mancha and Extremadura, Spain's top producing regions, accounted for most of the recovery. Despite the rebound, production remained below the decade's average.

Vineyard surface area declined by 1.9% to 911,080 hectares, continuing a long-term trend of land reduction. Castilla-La Mancha led the drop, losing over 13,600 hectares. In contrast, Castilla y León expanded by 4.4%, reflecting localized growth. Organic viticulture continued expanding, with organic vineyards reaching 166,286 hectares in 2023, representing 18% of the national total. Certification growth was notable in Castilla-La Mancha, Extremadura, and La Rioja.

The number of registered wineries grew slightly for the first time in years, reaching 3,925 as of January 1, 2024, a 2.1% increase. Growth was seen in regions such as Cataluña and Castilla y León, suggesting business restructuring or the entry of small, specialized operators, especially in organic or niche markets. Cataluña became the region with the most wineries, surpassing Castilla y León.

Looking ahead to 2025, the recovery in national production is expected to reduce import needs and stabilize supply, particularly for bulk wine. Consumer interest continues to shift toward organic, sustainable, and low-alcohol wines. Demand for white and sparkling wines remains strong. Export strategy will likely focus on maintaining higher-value markets, particularly in North America, while addressing competitive pressures and potential policy shifts.

Innovation in winemaking, marketing, and product development will be critical as Spain's wine industry adapts to changing consumer preferences and economic conditions in the year ahead.