Italy’s Wine Exports Fall as Producers Face Slower Demand

Italy’s wine industry is facing a sharp slowdown in exports, rising inventories and weaker demand at home and abroad, as producers, trade groups and policymakers search for ways to keep the sector growing. The pressure is coming from several directions at once: new U.S. tariffs, a softer market in Europe, changing drinking habits among younger consumers and a growing debate over alcohol, health and regulation.

The most immediate concern is the United States, Italy’s largest foreign market for wine. In 2025, Italian wine exports to the U.S. fell 13.2%, to about 1.8 billion euros, according to figures cited by industry groups. That drop has come as wineries also face higher uncertainty over trade policy under President Donald Trump and as European producers worry about competition from countries outside the bloc.

At the same time, Italian cellars are holding more wine than they can easily sell. Industry estimates put stocks at 74 million hectoliters, a level that reflects both strong production in recent years and weaker consumption. Vineyard area has also declined by at least 10,000 hectares, a sign that some growers are already cutting back.

The strain is not limited to Italy. France’s wine sector is also under pressure, with Bordeaux hit especially hard by falling sales in China and the U.S., while Champagne has sold more bottles but seen revenue slip. In Bordeaux, exports to China have fallen sharply from 72 million cases to 22 million, according to figures cited by Panorama, and about 100 châteaux owned by Chinese investors are now on the market.

For Italy, the stakes are high because wine remains the country’s leading agro-food export category. The sector includes about 7,000 companies with their own labels and supports more than 1 million people across vineyards, wineries, logistics and tourism. Annual foreign sales have been worth about 8.2 billion euros, though industry leaders say that figure is now under pressure.

The trade picture has become more complicated with the European Union’s agreement with Mercosur, the South American trade bloc. Lamberto Frescobaldi, president of Unione Italiana Vini, has welcomed the deal as a possible growth opportunity because current sales there are small but could expand. Yet some producers worry that broader trade shifts could also open the door to more competition from countries with lower costs and different rules.

Industry veterans say the deeper problem is not only trade but changing consumer behavior. Wine consumption has been falling in many markets as younger drinkers choose lower-alcohol beverages or drink less overall. In restaurants and business lunches, producers say wine is increasingly ordered for appearance rather than as a central part of the meal.

A recent European Commission report cited by WineNews projects that wine consumption in the European Union will fall 0.9% a year through 2035, reaching about 19.3 liters per person from an average of 21.2 liters in 2021-2025. The same report says production could decline 0.5% annually over that period, dropping to 138 million hectoliters by 2035.

That outlook has pushed some producers to rethink what they make and how they sell it. Sandro Boscaini of Masi said his company created Fresco di Masi, a line of lighter wines around 11 degrees alcohol aimed at easier drinking and clearer regional identity. Francesca Moretti of Terra Moretti said her group is focusing on sparkling wines that emphasize drinkability and social occasions while also telling the story of place through still wines.

Enotourism is emerging as another possible source of growth. A study by Future Market Insights estimates that global wine tourism revenue will rise from $108.3 billion in 2025 to $358.6 billion by 2035. Producers see winery visits, tastings and hospitality as a way to reach consumers who may not be buying as much wine for home use.

Dealcoholized wine is also becoming part of the discussion in Italy and Brussels. Frescobaldi has argued that production should remain within agriculture rules so it can be treated as a legitimate product category rather than something outside the sector entirely. Supporters say it could help bring younger consumers back into wine culture; critics say it will not solve the problems of smaller wineries.

Riccardo Cotarella, one of Italy’s best-known winemakers and president of the world association of enologists, plans to use upcoming industry meetings in Verona and Conegliano to press for a broader effort to reconnect with younger drinkers. He argues that wine risks becoming a product for nostalgia unless producers change how they speak to new audiences and adapt to different expectations around taste, alcohol levels and social habits.

The industry’s challenge now is whether it can turn those ideas into sales before inventories rise further and export markets weaken again.