Decreased wine supply: CAUSES EXPLAINED IN DETAIL
In 2024, the global wine industry faced a significant setback as production dropped by 4.8 percent, according to the International Organisation of Vine and Wine (OIV). This decline can be largely attributed to extreme and unpredictable meteorological phenomena driven by climate change.
The Mediterranean arc and other key wine-producing regions were particularly affected by these weather events, which included droughts, hailstorms, and other damaging conditions. As a result, the global wine production output fell to 226 million hectoliters in 2024, marking the lowest level since the 1960s[1][3].
The World Meteorological Organization indicated that 2024 was the warmest year on record, exacerbating these conditions and likely to be surpassed soon, further pressuring the wine sector[1].
In Europe, the wine production decreased by 3.5 percent compared to 2023. France, one of the continent's largest producers, experienced its lowest production since 1957 with 36.1 million hectoliters, a 23.5 percent drop from the previous year[1]. Spain's production remained 11.1 percent below the five-year average with a production of 31 million hectoliters. Italy, despite an increase in production, still recorded a 6 percent decrease from the five-year average with a production of 44.1 million hectoliters in 2024[1]. Germany, the fourth-largest European producer, saw a 9.8 percent decrease in wine production[1].
Despite the production decrease, the average export price of wine remained unchanged at 3.60 euros per liter in 2024. The estimated value of global wine exports for 2024 is 35.9 billion euros, with only a slight decrease from the previous year[1].
The overall price level of wine is high, partly due to the increasing trend towards premium wines in recent years. In the EU, wine consumption decreased by 2.8 percent to 103.6 million hectoliters, a 5.2 percent decrease from the five-year average[1]. Austria's wine consumption decreased by 2.6 percent to 2.2 million hectoliters, and its production decreased by 8.8 percent, also falling 11.8 percent short of the previous five-year average[1].
In conclusion, the 4.8 percent global wine production decline in 2024, as reported by OIV, was primarily caused by climate change-induced extreme weather events. The industry is expected to continue facing challenges as these weather patterns persist and potentially intensify, underscoring the need for sustainable and climate-resilient viticulture practices.
[1] International Organisation of Vine and Wine (OIV) [2] Various wine industry reports and publications [3] Historical global wine production data from OIV and other reliable sources
- The drop in global wine production in 2024, exacerbated by extreme weather events related to climate change, might have unforeseen effects on the relationship between wine prices and environmental-science research funding, potentially influencing the financial resources available for discoveries in the fields of science and personal-finance.
- Climate change, by significantly impacting the wine industry through events like the 2024 production decline, might lead to a shift in investment strategies within the finance sector, prompting investors to consider environmental, social, and governance (ESG) factors in wine companies more seriously, as responsible investment in such climate-vulnerable industries becomes increasingly important in the coming years.
- As world leaders grapple with the implications of the 2024 global wine production drop and the future of the industry in the face of climate change, they must also address the broader impact on the environment, leading to discussions focused on policy changes and sustainable practices in fields like agriculture, science, and personal-finance that take climate-change mitigation and adaptation into account.
