Wine sector in historic decline, with production at lowest level in more than six decades

The International Organisation of Vine and Wine (OIV) presented its annual report on the global wine sector during an online press conference held on April 15, 2025. The data, covering the 2024 calendar year, reflects significant challenges for the industry, including climate change, evolving consumer behavior, and geopolitical instability. OIV Director General John Barker emphasized the need for international cooperation and adaptation to ensure the sector’s resilience and sustainability.

Focus on global wine production - excluding musts and juices - estimated at 225.8 million hectoliters by 2024, a 4.8% drop from 2023. This marks the second consecutive year of sharp decline and represents the lowest production level since 1961. The decrease is largely attributed to extreme weather events such as early frosts, heavy rainfall, droughts, and hailstorms that affected vineyards across both hemispheres.

In the Northern Hemisphere, European Union countries produced an estimated 138.3 mhl in 2024, down 3.5% from the previous year. This is the lowest volume recorded in the EU since 2000. Climate-related disruptions varied across regions: some areas experienced severe drought while others faced excessive rainfall and storms. These conditions led to increased disease pressure and damage to vineyards.

Italy remained the world’s top wine producer with an output of 44.1 mhl in 2024, a 15% increase from its low 2023 level but still 6% below its five-year average. Northern Italian regions were hit by hailstorms, limiting overall gains. France followed with a production of 36.1 mhl, a steep decline of 23.5% from 2023 and nearly 18% below its five-year average. This marks France’s lowest output since 1957, driven by persistent rain, fungal diseases like downy mildew, poor flowering conditions, droughts, and hail.

Spain produced 31.0 mhl in 2024, up by 9.3% from the previous year but still significantly below its five-year average due to ongoing water stress despite better harvests in Castilla-La Mancha and Extremadura.

Other EU countries also saw declines: Germany (7.8 mhl), Portugal (6.9 mhl), Romania (3.7 mhl), and Austria (2.2 mhl) all reported lower volumes due to various climatic challenges including frost and heavy rains. Hungary (2.7 mhl) and Greece (1.4 mhl) were exceptions with modest increases over their 2023 figures.

Outside the EU, Russia reported a strong performance with a production of 5.4 mhl in 2024—its highest since 2015—up nearly 20% from the previous year and well above its five-year average. Georgia also saw significant growth with a production of 2.4 mhl, up more than 26% from 2023 thanks to favorable weather across key regions. In contrast, Moldova’s output dropped sharply to just 1.1 mhl—a nearly 40% decrease from last year.

China’s wine production fell by 17% to an estimated 2.6 mhl in 2024 as domestic challenges continued to affect output.

In the United States, wine production dropped to an estimated 21.1 mhl in 2024—a decline of over 17% compared to the previous year and more than 15% below the five-year average. California’s grape harvest was particularly affected by extreme heat and inventory pressures, resulting in its smallest crop since 2004.

In the Southern Hemisphere, total wine production reached only 45.8 mhl in 2024—a decrease of nearly 4% from the previous year and almost 14% below the five-year average—marking one of the lowest outputs in two decades.

Argentina led Southern Hemisphere producers with a recovery to 10.9 mhl in output—up more than 23% from a difficult harvest in 2023 but still slightly below its five-year average.

Chile produced just 9.3 mhl in 2024—a drop of over 15% from last year—due to delayed harvests caused by a cool spring and ongoing drought conditions.

Brazil experienced one of the steepest declines among major producers with only 2.1 mhl produced—a drop of over 40% compared to last year—due to excessive spring rainfall and disease pressure.

South Africa’s wine production fell by more than 5% to reach just under nine million hectoliters—the country’s lowest level since 2005—after facing frost, floods, high winds, and fungal diseases during critical growing periods.

In Oceania, Australia produced an estimated 10.2 mhl in wine during 2024—a slight recovery from its historically low volume in the previous year but still well below average due to continued adverse weather conditions and inventory issues.

New Zealand saw a sharp decline of over 21%, producing only about 2.8 mhl as frost during flowering significantly reduced yields in Marlborough—the country’s key wine region.

The OIV stressed that these figures reflect not only environmental challenges but also market dynamics influenced by changing consumer preferences and global trade uncertainties. Barker highlighted that while these trends pose serious challenges for producers worldwide, they also offer opportunities for innovation through sustainability efforts, research into new markets, and stronger international collaboration.

The OIV currently includes participation from more than fifty member countries representing over three-quarters of global wine production and consumption. Its role as a central body for data collection and policy coordination remains critical as the industry navigates increasingly complex conditions worldwide.