World wine production has reached a new low, and France has returned to first place after nine years
A few days ago, the International Organization of Vine and Wine (OIV) released a preliminary estimate of world wine production in 2023.
Based on the information currently collected on wine production in 29 countries, which account for 94% of global production in 2022, world wine production in 2023 is expected to be between 24.17 billion liters and 24.66 billion liters, down 7% compared to 2022 and the lowest since 1961.
Image source: OIV official website
OIV noted that this was attributed to a significant decline in the production of major wine-producing countries in the northern and southern hemispheres. In the northern hemisphere, Italy, Spain and Greece were the countries most affected by adverse weather during the season, while in the southern hemisphere, Australia, Argentina, Chile, South Africa and Brazil saw year-on-year declines of 10 to 30 percent.
northern hemisphere
EU production down 7% year-on-year
France is once again the world's number one country after nine years
After a brief increase in wine production in 2022, EU production fell again in 2023, with production expected at 15 billion liters, down 7% compared to 2022.
Image source: OIV official website
France is once again the world's largest wine producer, with production estimated at 4.58 billion litres, on par with last year and a slight increase of 3% compared to the average of the last five years. For the first time in nine years, France overtook Italy and won the first place in production.
The situation varies greatly from region to region in France. Bordeaux and the south-west region were affected by downy mildew and heat waves, while the Languedoc and Roussillon regions were hit by a prolonged drought, so the reduction in production was more significant. Other important producing regions such as Champagne and Burgundy have better yields, and the Charente region has performed well.
Italy's production fell to a new low, relegating to second place. Italy has been firmly at the top of the world wine production list since 2015, but the situation has changed in 2023, with its wine production estimated at 4.39 billion liters, a sharp decline of 12% compared to last year and a sharp drop of 13% compared to the average of the last five years, the lowest on record since 2017. It is reported that unusually heavy rainfall in central and southern Italy has caused downy mildew to be rampant, which has hit wine production hard.
Spain, in third place, saw a steeper decline than Italy, with wine production estimated at 3.07 billion litres, down 14% compared to last year and 19% below the average of the last five years, and estimated to be the lowest in the last 20 years. Key regions such as Castilla-La Mancha, located in the south, have seen particularly significant reductions in production due to high temperatures and extreme weather.
Production also fell in Greece, Austria, the Czech Republic and other countries, among which Greece fell by as much as 45%, which is quite alarming. This was mainly due to heavy rains in the spring that caused diseases and a high temperature and drought in the summer.
At the same time, wine production in some countries increased compared to last year. For example, production in Germany is expected to be 900 million litres, up slightly by 1 percent, and in Portugal is expected to be 740 million litres, up 8 percent. Romania, Hungary, Bulgaria and other countries have increased production.
Outside the EU, the situation is more optimistic in the United States and Switzerland. As the world's fourth-largest wine producer, the United States is expected to produce 2.52 billion liters of wine, up 12% from 2022 and up 4% from the average of the past five years. Cool temperatures and abundant winter rains created a favorable environment for grapes in the Napa and Sonoma regions. Wine production in Switzerland is estimated at 100 million litres, a slight increase of 4% compared to last year.
In Eastern Europe, Russian wine production is expected to be 490 million litres, the same as last year's level, while Georgia and Moldova are down 28% and 10%, respectively.
southern hemisphere
Extreme weather strikes in turns
Output in major producing countries fell by 10%-30%
After setting a new high in 2021, production in the Southern Hemisphere declined slightly in 2022. In 2023, the downward trend continued, with frosts, hailstorms, droughts, heat waves and other extreme weather events taking place an estimated 4.5 billion litres of wine production in the Southern Hemisphere, a significant decline of 19% compared to 2022 and the lowest production record since 2003.
Image source: OIV official website
The major wine-producing countries are not doing well, with declines of 10%-30%. Overall, the Southern Hemisphere is expected to account for 19% of the world's total wine production in 2023.
As the largest wine producer in the southern hemisphere, Chile is not faring well. Severely affected by frequent climatic disasters such as droughts and wildfires, its wine production is significantly lower by 20% compared to last year, estimated at 1 billion litres, and 18% below the average of the last five years.
Australia is forecast to produce 990 million litres, down 24% from last year and 22% below the average of the past five years. On the one hand, persistent rainfall and unusually cold weather, as well as flooding caused by La Niña, led to a significant reduction in wine production, and on the other hand, production was limited by high inventory pressures to alleviate the oversupply.
South Africa, suffering from the negative effects of powdery mildew and downy mildew, is also experiencing a decline in production, which is expected to be 930 million litres, a relatively small decline of 10 percent.
Thanks to spring frosts and hail, Argentina fell 23 percent compared to last year, with an estimated production of only 880 million litres. Brazil is expected to produce 230 million litres and Uruguay is expected to produce 50 million litres, with wine production falling by 30% and 34% respectively.
It is worth mentioning that New Zealand wine production is estimated at 360 million litres, down 6% compared to last year, although still up 14% on the average of the last five years.
Although frequent extreme weather such as droughts, frosts, and heavy rains have led to poor harvests and sharp declines in production, the OIV said that in the context of declining global consumption and high inventories in many parts of the world, the expected low output may bring balance to the world market.
文、编 | Rayna