The Global Wine Market
Published on January 11, 2023
How is global wine production changing in response to climate change? Which French wines are the top exporters? How is wine consumption evolving? A closer look at the main trends in the global wine market.
Global production remains stable despite adverse weather conditions
Frost and droughts in Europe, wildfires in Australia and the United States: all over the world, winegrowers are having to cope with increasingly difficult and unpredictable weather conditions. Yet wine production remains stable, both in France and globally. In 2021, it fell by just 1%, with 260 million hectoliters produced.
In France, following a difficult 2021 (with a 19% drop in production), the Ministry of Agriculture announced that wine production was on the rise again. Despite the droughts of summer 2022, wine production in France increased by 16% compared to the previous year, reaching 44 million hectoliters (source: Committee of Professional Agricultural Organizations of the European Union).
At the top of the global wine production rankings are Italy, France, and Spain. Together, these three European nations account for nearly half of the world’s wine production!
France, the world leader in wine exports
According to the National Interprofessional Wine Committee (CNIV), wines and spirits are France’s second-largest export sector. Despite declines in production, global exports of French wines increased by 28% in 2021. This represents a total of 15.5 billion euros, or 1.9 billion bottles exported to more than 200 countries!
Speaking of which, which wines are our top exports worldwide? Bordeaux wines are undeniably popular internationally, particularly in the Chinese market, which accounted for 30% of Bordeaux Grand Cru exports in 2021. Burgundy and Beaujolais are also particularly well-received abroad. When it comes to white wines, it is the Languedoc, the Loire, and Burgundy that appeal to foreign importers.
France therefore remains the leading wine exporter, followed by Italy, Spain, then Chile and Australia. Hooray! But while French wines enjoy an excellent international reputation, they still face competition from certain southern nations, such as Australia, which is gaining market share in the U.S. and Asia.
In recent years, French wine exports have also been hampered by restrictions related to the COVID-19 crisis and then by the “Trump tariff” (since suspended by Joe Biden). The International Organization of Vine and Wine (OIV) remains cautious about the outlook for the coming years: rising raw material prices, combined with the loss of the Russian and Ukrainian markets, could negatively impact French wine exports.
Wine Consumption and Imports Around the World
Globally, wine consumption is rising very slightly (+0.7% in 2021), still impacted by the COVID-19 crisis. In the ranking of wine-consuming countries, the United States accounts for 14% of global consumption, followed by France (11%), Italy (10%), Germany (8%), and the United Kingdom (6%).
Chinese wine consumption, which was seen as promising just a few years ago, has been declining sharply since the country implemented its “zero-COVID” measures. According to the OIV, wine consumption in China fell from 1.9 billion liters in 2017 to 1 billion liters in 2022. The Chinese market, which was expected to become the world’s second-largest wine market, ranks seventh in 2022.
In Europe, and particularly in France, consumption is on the decline. Over the past 60 years, wine consumption has fallen by 70%, and this trend continues year after year. Younger generations seem less interested in wine than their elders: consumption among 18- to 35-year-olds fell by 7% between 2011 and 2021, compared with a 1% decline among older adults (source: Kantar for RTL).
Among wine-importing countries, the top three are Germany, the United States, and the United Kingdom (OIV, 2021). These three nations account for 38% of global imports, with 42 million hectoliters imported in 2021 and a market worth 13.1 billion euros. Outside of Europe, Russia, Canada, China, and Japan are major importers.
Three consumer trends to watch
1. Consume “less but better”
While wine consumption is on the decline in Europe and France, the average amount spent on wine is actually increasing. According to the OIV, while people over 55 buy wine more regularly, younger generations tend to save wine for special occasions, spending more per bottle.
In addition to wine quality, consumers are paying increasing attention to environmental labels (sustainable winemakers, HVE, Terra Vitis, etc.). 53% of French customers say they are willing to pay more for a wine with an environmental label (source: Sowine / Dynata, 2022). Among these labels, organic wines are particularly recognized and appreciated in France and around the world, with the exception of Asia.
2. Buy wine online
The growing popularity of online shopping has not spared the wine market, a trend further accelerated by the health crisis and its restrictions. In 2021, 45% of French people bought their wine online (compared to 12% in 2012), and this figure has remained steady ever since, despite the end of lockdowns.
Most online purchases are made through major retailers’ websites (33%), followed by producers’ websites (30%), and finally wine merchants’ websites (25%) (source: Sowine / Dynata)
3. "Non-alcoholic / low-alcohol"
Driven by public health campaigns, the consumption of low-alcohol wines—and even non-alcoholic beverages—is on the rise. “No/low” wines (containing between 0.5% and 7% alcohol) are becoming increasingly popular, particularly in the United States.
This trend is particularly evident among younger generations, with 44% of consumers in the 18–25 age group (Sowine / Dynata).
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