‘Significant increases’ in wine prices globally
The latest figures from the OIV (International Organisation for Vine and Wine) estimate world wine consumption in 2022 at 232 mhl, marking a decrease of 2 mhl (-1%) compared to 2021.
“The war in Ukraine and the associated energy crisis, together with the global supply chain disruptions, lead to a spike in costs in production and distribution. This resulted in significant increases in wine prices for the consumers,” notes the organization.
Spike in production costs
Decreases in consumption, however, follow a longer trend seen since 2018.
“This negative trend can be mainly attributed to the decline in China’s consumption, which has lost on average 2 mhl per year since 2018," notes OIV. "This downward trend was accentuated in 2020 by the Covid-19 pandemic, which brought a depressing effect on many large wine markets.
“Consumption was hit by lockdown measures, the disruption of the HoReCa channel, and an overall lack of tourism. In 2021, the uplifting of restrictions pertaining to movement of people and goods, reopening of HoReCa channel and the revival of social gatherings and celebrations did, as anticipated, contribute to an increase in consumption in most countries around the world.
“In 2022, however, the war in Ukraine and the associated energy crisis, together with the global supply chain disruptions, lead to a spike in costs in production and distribution. This resulted in significant increases in wine prices for the consumers.”
The US remains the largest wine consuming country in the world and, despite the global backdrop, remains relatively strong. With a volume estimated at 34 mhl, its consumption has increased by almost 3% compared to 2021, and now it is back to its pre-pandemic levels.
Taken as a bloc of 27 countries, the EU accounts for 48% of world consumption (at 111 mhl). But this figure is 2% lower than 2021 and its share of the world market has ‘significantly decreased’ as its traditional wine countries cut back on consumption.
As the second largest wine consumer in the world, France’s volumes are estimated at 25.3 mhl (now growing after a COVID-19 hit), while the third largest, Italy, has estimated consumption of 23 mhl (down 5% on 2021 but in line with the five year average).
In South America, the largest wine consumer is Argentina with 8.3 mhl, which is lower by 1.3% with respect to 2021. This reinforces the decreasing trend seen since the beginning of this century.
Brazil, second largest market in South America, with a level of 3.6 mhl in 2022, has decreased its consumption by 12.9% compared to record-high volumes registered in 2020 and 2021.
