Global wine consumption falls as producers cut output

The global wine market continued to adjust in 2025 as tariffs, weather disruptions and changing drinking habits pushed producers to align supply more closely with demand, according to a new report from the International Organisation of Vine and Wine.

The organization said worldwide wine production reached 227 million hectoliters last year, a slight increase from 2024 but still below long-term averages. It was the third straight year of relatively low output, reflecting difficult weather in major wine regions and, in some cases, deliberate cuts by producers trying to avoid building up excess stock.

At the same time, global consumption fell to 208 million hectoliters, down 2.7% from the previous year. The OIV said the decline reflected both economic pressure on consumers and longer-term shifts in drinking habits in mature markets. Several of the world’s largest wine-consuming countries posted declines, including the United States, which remained the biggest market at 31.9 million hectoliters despite a 4.3% drop. China’s consumption fell 13%, underscoring the weakness in that market.

The report also showed that vineyard area worldwide kept shrinking for a sixth consecutive year, falling to 7 million hectares. That decline points to a broader effort across the industry to bring production capacity closer to current demand patterns.

Trade also softened in 2025. Global exports fell 4.7% to 94.8 million hectoliters, while export value dropped 6.7% to €33.8 billion, or about $36.7 billion. The OIV said tariffs, uncertainty and weaker demand weighed on shipments across markets.

Even with lower volumes, prices remained firm. The average export price held at €3.56 per liter, about $3.88, one of the highest levels on record and well above pre-pandemic averages. The organization said that reflected continued demand for higher-priced wines.

Bottled wine remained the largest segment of global trade, accounting for 66.4% of export value. Sparkling wine also held up relatively well and made up nearly a quarter of export value despite softer overall demand.

The OIV said about 46% of all wine produced is traded internationally, a sign of how dependent the sector remains on cross-border demand and shipping conditions. The group said recent bilateral and multilateral trade agreements could help create better conditions for markets that are still adjusting to slower consumption and tighter supply.