Wine trade loses €1.1 billion in one year

Global wine trade has experienced a significant decline in both value and volume over the past twelve months, covering the period from July 2023 to June 2024. According to data sourced from customs and statistical institutes in various countries, global wine exports dropped by $1.194 billion, a 6% decrease, and by 360 million liters, representing a 3.5% reduction. This places total global wine trade figures at $36.844 billion and 9.920 billion liters, respectively. The average price per liter also saw a slight decline of 2.5%, settling at $3.71.

These numbers mark a sharp shift from the robust recovery that the global wine market experienced following the COVID-19 pandemic. In 2021 and 2022, the wine trade rebounded significantly, surpassing the losses recorded in 2020. In terms of value, global wine exports rose from less than $31.2 billion during the pandemic's peak to a high of $39.52 billion in April 2023. Volume recovery was more modest but still positive, increasing from 10.2 billion liters in May 2020 to 11.16 billion liters in January 2022, reflecting a 9.4% growth.

A key driver of this recovery was the marked increase in the average price per liter, which climbed from $2.95 in February 2021 to $3.83 in August 2023, a rise of nearly 30% in just over two years. This price surge, fueled by strong demand and the inflationary pressures of 2021 and 2022, contributed to higher spending on wine. However, since 2023, these higher prices appear to have had a negative impact, with particularly sharp declines seen in the bottled and sparkling wine segments.

France has been notably affected by this downturn, experiencing substantial decreases in its wine exports. The data suggests that this negative trend in global wine trade is partly attributable to inflationary effects and year-on-year variations in prices and volumes. While value growth rates peaked at nearly 20% during the recovery period, volume increases barely reached 8%, underscoring the central role of rising prices in driving the initial rebound.

The current slowdown seems to stem from a market correction after the significant growth observed in the post-pandemic years. Although the volume of wine purchases also grew during the recovery, the primary factor driving the rebound was the rise in average prices. This price-driven growth, initially beneficial to the sector, has begun to show less favorable effects, with a slowdown now evident as consumer purchasing power diminishes and markets struggle to sustain such high price levels.