Global Vineyard Area Shrinks for Sixth Straight Year

2026-05-20

Falling wine consumption and climate shocks are forcing growers to cut back in some regions while others expand plantings

The global vineyard map is being reshaped by falling wine consumption and climate pressure, with the world’s vineyard surface shrinking for a sixth straight year even as some countries expand plantings and others cut back.

The International Organisation of Vine and Wine said last week that global vineyard area fell 0.8% in 2025 from the year before, to 7 million hectares. The group also said wine consumption dropped 2.7% in 2025, extending a decline that has been building for years. The changes are forcing growers and governments to rethink where vines should be planted, how much wine should be made and which regions can remain competitive.

John Barker, the OIV director general, said the drop in vineyard area reflected “changing consumption patterns” as vine-growing countries adjust to weaker demand. In practical terms, that means fewer grapes needed, less wine produced and more pressure on vineyards that are already struggling with weather shocks and rising costs.

France has become one of the clearest examples of the shift. The government has set aside €130 million to help fund the uprooting of vineyards, a move aimed at reducing overproduction and supporting the value of the country’s remaining wine industry. France’s wine sector supports about 440,000 jobs, making the stakes high for growers, cooperatives and regional economies.

The OIV said grapes remain the most widely planted fruit crop in the world and that 99 countries now have vineyards and produce wine. But production is concentrated in six countries — Spain, France, China, Italy, the United States and Turkey — which together account for 55% of global vineyard area. Spain remains the largest vineyard country, with 919,000 hectares, followed by France at 740,000 hectares.

Weather has added another layer of strain. Early frosts, heavy rain and prolonged drought hit major wine regions in 2023 and 2024, and similar conditions continued in 2025. In the European Union, which accounts for about 60% of world wine production, climate variability has disrupted vineyards across a wide range of growing areas. Some regions faced severe drought and heat stress. Others dealt with excessive rainfall and damaging storms.

Portugal was among the countries hit hardest. The country saw swings from record rainfall to intense heat in 2025, which fueled disease outbreaks and drought stress and led to its lowest production since 2011.

The long-term outlook is also changing. A recent study cited by industry analysts found that as much as 90% of coastal and low-altitude regions in Europe and California may struggle to sustain successful wine growing in the future. At the same time, some cooler or previously marginal regions could gain ground. British Columbia in Canada, Washington State and Tasmania were identified as places that may become more important as temperatures shift.

Not every market is moving in the same direction. India’s vineyard area has been expanding at an average annual rate of 4.6% since 2019 and has reached 197,000 hectares, according to OIV data. That makes it the seventh-largest vineyard area in the world, though it still represents only 2.8% of global vineyard surface. Wine remains a small part of India’s alcohol market, where beer dominates and wine accounts for less than 1%, but a growing urban middle class is increasing interest in domestic production.

The United Kingdom is also seeing change. Its wine market declined 6% in 2025 by value terms, largely because of changes in alcohol duty that affected higher-alcohol wines. Wine consumption there fell 2.4%. Yet climate conditions are making parts of southern England more suitable for vineyards, helping drive a sharp rise in plantings over the past decade as English producers look to capture more demand at home and abroad.