Worldwide consumption ofwinefell in 2024 to its lowest level in more than 60 years, the main trade body has said, raising concerns about new risks from US tariffs.The International Organisation of Vine andWine(OIV) said on Tuesday that 2024 sales fell 3.3% from the previous year to 214.2m hectolitres.The OIV, whose report was based on government figures, said this would be the lowest sales figure since 1961, when sales were 213.6m hectolitres.Production is also at its lowest level in more than 60 years, having fallen 4.8% in 2024 to 225.8m hectolitres.‘Reflection of culture’: large glasses of wine come off the menu for British drinkersRead moreThe OIV’s statistics chief, Giorgio Delgrosso, said the wine industry had been hit by a perfect storm as health concerns drive down consumption in many countries and economic factors added to troubles.“Beyond the short-term economic and geopolitical disruptions, it is important to consider the structural, long-term factors also contributing to the observed decline in wine consumption” the IOV’s annual report said.The OIV said the consumer was now paying about 30% more for a bottle now than in 2019-20 and overall consumption had fallen by 12% since then.In the United States, the world’s top wine market, consumption fell 5.8% to 33.3m hectolitres.Delgrosso said tariffs ordered by the US president, Donald Trump could become “another bomb” for the wine industry.Sales in China remain below pre-Covid levels. InEurope, which accounts for nearly half of worldwide sales, consumption fell 2.8% last year. In France, one of the key global producers, 3.6% less wine was consumed last year. Spain and Portugal were among the rare markets where consumption increased.The OIV said production had been hit by environmental extremes such as above-average rainfall in some regions and droughts in others.Italy was the world’s top producer with 44m hectolitres, while France’s output fell 23% to 36.1m hectolitres, its lowest level since 1957.skip past newsletter promotionSign up toFeastFree weekly newsletterRecipes from all our star cooks, seasonal eating ideas and restaurant reviews. Get our best food writing every weekEnter your email addressSign upPrivacy Notice:Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see ourPrivacy Policy. We use Google reCaptcha to protect our website and the GooglePrivacy PolicyandTerms of Serviceapply.after newsletter promotionItaly is also the biggest wine exporter and its trade increased because of the popularity of sparkling wines such as prosecco.Spain produced 31m hectolitres, while US wine output fell 17.2% to 21.1m hectolitres, mainly because of extreme heat.The OIV could not predict if consumption would take off again and industry players, such as the French chain of wine shops Nicolas, say there is a “generational” fall in drinking.“People do not drink in a festive way any more and young people consume less than their parents,” the company said in a statement to Agence France-Presse.However, “people drink less, but better”, Nicolas said, and so are ready to spend more.
In the red: global wine sales fall to lowest levels since 1961
TruthLens AI Suggested Headline:
"Global Wine Consumption Declines to Lowest Level Since 1961"
The Guardian
7.6
TruthLens AI Summary
In 2024, global wine consumption reached its lowest level in over six decades, according to the International Organisation of Vine and Wine (OIV). The report highlighted a significant decline of 3.3% from the previous year, resulting in total sales of 214.2 million hectolitres, which is the lowest figure recorded since 1961. Additionally, wine production also experienced a downturn, falling 4.8% to 225.8 million hectolitres. Various factors contributed to this decline, including rising health concerns among consumers, economic pressures, and potential impacts from U.S. tariffs. The OIV's statistics chief, Giorgio Delgrosso, emphasized the importance of recognizing both immediate economic disruptions and longer-term structural changes affecting wine consumption patterns globally. Notably, consumers are now paying approximately 30% more for a bottle of wine compared to 2019-2020, coinciding with a 12% drop in overall consumption during the same period.
The United States, being the largest wine market, saw a 5.8% decrease in consumption, amounting to 33.3 million hectolitres. The OIV raised concerns that tariffs imposed during the Trump administration could pose additional risks to the wine industry. In Europe, which accounts for nearly half of global wine sales, consumption fell by 2.8%, with France experiencing a 3.6% decline. While Spain and Portugal noted increases in consumption, the overall trend remains downward. Environmental factors, such as extreme weather conditions, have also impacted production levels, with Italy maintaining its status as the world's top producer at 44 million hectolitres. Conversely, France's production dropped significantly due to unfavorable conditions, reaching its lowest output since 1957. The OIV's report suggests a generational shift in drinking habits, with younger consumers opting to drink less frequently but choosing higher-quality wines, indicating a change in consumer behavior rather than a complete retreat from wine consumption.
TruthLens AI Analysis
The article presents concerning statistics about the global wine market, highlighting a significant decline in both consumption and production. This downturn, attributed to various health and economic factors, raises alarms about the future of the wine industry, especially with the added pressure of tariffs in the United States.
Implications of Declining Wine Consumption
The drop in wine sales to the lowest levels since 1961 can have broader implications for the industry, affecting everything from vineyard management to employment in wine-producing regions. The OIV's report suggests that long-term consumer behavior is shifting, with health-conscious trends and economic pressures influencing purchasing decisions. This could lead to permanent changes in how wine is marketed and sold.
Public Perception and Industry Response
The article aims to create awareness about the challenges faced by the wine industry, likely encouraging stakeholders to reassess their strategies. By highlighting the structural issues behind the decline, it may spur discussions within the industry about adapting to changing consumer preferences. The mention of tariffs could provoke political discourse on trade policies affecting agricultural products, which has implications for broader economic discussions.
Potential Concealments
While the article focuses on declining sales and production, it may overlook the nuances of market adaptation and growth in alternative beverage sectors, such as craft beers and spirits. The narrative could imply a dire outlook without fully exploring the potential for innovation within the industry.
Manipulative Elements
The article employs a cautionary tone, which could be interpreted as manipulative if it aims to sway public opinion against current policies or market practices. The stress on "tariffs as a bomb" suggests an impending crisis that may not fully materialize, potentially exaggerating the urgency of the situation.
Comparative Context
When compared to other industries facing similar challenges, such as beer or spirits, the wine sector's struggles may reflect broader trends in consumer preferences rather than unique failings of the wine market. This context could mitigate the perceived severity of the situation.
Impact on Stock Markets and Economic Trends
The declining wine market may affect stocks related to wine production and distribution. Companies heavily invested in wine may face pressure from declining sales figures, influencing their stock performance. Conversely, businesses in the craft beer or non-alcoholic beverage sectors might benefit from shifting consumer trends.
Global Power Dynamics
This news item intersects with broader global discussions about trade, health policy, and consumer rights. The implications of tariffs and international trade agreements are particularly relevant in today's geopolitical climate, where consumer goods are often at the mercy of policy changes.
Use of AI in Reporting
While the article does not explicitly indicate the use of AI in its creation, it showcases data-driven insights typical of AI-generated reports. If AI were used, it might have influenced the emphasis on statistical analysis and trends, guiding the narrative toward the challenges faced by the wine industry. The overall reliability of the article hinges on its reliance on OIV statistics and the acknowledgment of structural factors affecting the industry. However, the potential for exaggeration in the framing of the situation should be considered. Thus, while the article presents factual data, the interpretation invites scrutiny regarding its implications and potential biases.