Global Wine Consumption to Hit Historic Low of 214 Million Hectoliters in 2025

European wine producers are facing a sharp decline in both production and consumption, prompting the European Commission to take action. In early December 2025, the Commission approved a support plan for the wine industry, which is struggling with unfavorable economic conditions and growing structural challenges. The plan comes as global wine consumption is expected to reach a historic low of 214 million hectoliters by the end of 2025.

The main measure in the European plan is financial support for the permanent removal of vineyards. In France, 130 million euros will be allocated to fund vineyard uprooting at a rate of 4,000 euros per hectare. Similar measures are being implemented in Italy and Spain. The goal is to reduce supply in response to falling demand. However, experts say this approach only addresses part of the sector’s structural imbalance.

According to a recent analysis by Coface, an international credit risk management company, global wine production and consumption have dropped by nearly 10% over the past decade. The decline is even more pronounced in Europe, where consumption has fallen by 25% since 2000. France has lost its position as the world’s leading wine producer to Italy, and demand continues to fall sharply.

France, Spain, and Italy together account for 60% of global wine production. This dominance contrasts with weak demand across the continent. The European Commission’s plan aims to address oversupply but does not fully tackle declining European consumption or export difficulties.

Export challenges are adding pressure to the sector. In China, wine consumption has dropped by more than 60% since the pandemic began. In the United States, new tariffs have made it harder for European exporters to access the market. These obstacles further weaken an industry already under strain from changing consumer habits and increased competition.

Simon Lacoume, an economist specializing in the wine sector, describes the current situation as an unprecedented crisis marked by persistent imbalances between supply and demand, export difficulties, and competition in lower-priced wines. He notes that while current measures are essential, they are not enough to ensure long-term sustainability for European wine producers.

Coface’s analysis points out that France’s plan to remove 1.5 million hectoliters from the market—just 10% of the estimated surplus in 2025—will not be sufficient to correct the imbalance between supply and demand. The focus on reducing production does not address falling demand or shifts in consumer preferences.

Lower-priced wines, especially those produced in southeastern France, face increasing competition from non-European countries and declining demand at home. This makes vineyard removal an inadequate solution for ensuring long-term viability in the sector.

Industry observers say that focusing solely on reducing supply hides deeper issues such as the need for higher-quality products and disparities among producers. Without addressing these challenges, experts warn that Europe’s wine industry may continue to struggle with oversupply and weak demand well into the future.