World wine production in 2023 was the lowest since 1961, according to the OIV[1] State of the World Vine and Wine Sector in 2023 report. Despite this, production still exceeded consumption, which has been declining steadily since 2018 and reached its lowest level since 1996.
The low production was driven by various climatic challenges across both the northern and southern hemispheres, affecting most major wine-producing countries.
Northern hemisphere
France was the world's leading wine producer in 2023. It defied the overall trend, producing an above-average harvest despite losses due to disease pressure in some regions including Bordeaux.
Italy had its smallest crop since 1950, after a growing season that included heavy rainfall, flooding and hailstorms, resulting in widespread mildew issues.
Spain also had a well-below average harvest overall, with yields reduced by severe drought and extreme temperatures during the growing season.
The US harvest was in line with its five-year average and 8.5 per cent above the 2022 vintage, following a season with favourable conditions including cool temperatures and heavy winter rainfall.
Southern hemisphere
In the southern hemisphere, Australia experienced its lowest vintage in 20 years due to a combination of rain, cool temperatures and disease pressures, combined with some uncontracted fruit not being harvested.
New Zealand reported a slightly smaller intake than the record 2022 crush, but still above the five-year average despite challenging conditions.
The harvest in Chile was down by 11 per cent compared with 2022 as a result of significant wildfires, drought and flooding. However, it was still the largest vintage in South America, with Argentina recording its lowest harvest since 1957, primarily due to spring frosts and hailstorms.
South Africa also had a below-average crop, heavily impacted by fungal diseases.
Global supply and demand position
Wine Australia’s latest Global Supply Monitor (April 2024 update) summarises the overall supply and demand position and highlights the trends for the top wine-producing and consuming countries.
Global production was 23.7 billion litres according to the OIV preliminary figures, while consumption was 22.1 billion litres. This means an excess 1.6 billion litres (7 per cent), despite production being the lowest since 1961 (Figure 1).
Figure 1 World wine consumption and production over time
Source: OIV
The decline in consumption was largely driven by the decrease in China’s consumption, as well as global factors including inflationary pressures, supply chain disruptions, geopolitical tensions and a prevailing moderation trend in many of the larger wine markets.
In 1961, global wine consumption was around 25 billion litres[2]. It is worth noting that the global population in 1961 was around 3 billion, compared with 8 billion in 2023, so per capita consumption of wine is much lower now than it was 60 years ago.
1. International Organisation of Vine and Wine
2. Kym Anderson Global Wine Markets 1961 – 2009