US tariffs weigh on world wine trade in 2025 while consumption slips to new low

[PARIS] US tariffs contributed to a further decline in global wine trade last year while consumption remained at its lowest in over 60 years as economic pressures and changing tastes continued to deter drinkers, international wine body OIV said on Tuesday (May 12).

Tariffs imposed by the US, the world’s largest wine market, by President Donald Trump since last year have added to difficulties for a sector grappling with a harsher climate and waning demand.

Global wine exports in 2025 fell by 4.7 per cent in volume to 94.8 million hectolitres, the lowest since 2009, while in value terms exports dropped by 6.7 per cent to 33.8 billion euros (S$39.67 billion), the International Organisation of Vine and Wine, known as the OIV, said.

Wine consumption slipped by 2.7 per cent globally to 208 million hectolitres, the lowest since 1957.

“What we can see in the 2025 data is a sector that’s reacting to real-time impacts of US tariff policies, but also adapting to some longer-term changes in terms of climate and consumption,” OIV director general John Barker said. Exports and consumption had already recorded in 2024 their lowest levels since 2010 and 1961, respectively.

OIV did not yet have clear indications on the possible impact of the Iran war on the sector, but would expect some effect due to consequences for consumer sentiment and shipping, Barker said. The sector was adapting by focusing more on wine tourism and sustainability while also developing lower-alcohol products, he said.

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The OIV was in talks to establish a customs code for low-alcohol and alcohol-free wine to be able to track trade in the category that currently represents about 1 to 2 per cent of global production, he added.

Global wine output in 2025 reached 227 million hectolitres, below the OIV’s initial estimate of 232 million hectolitres from November and only 0.6 per cent above the 2024 level that was the lowest since 1961.

In addition to widespread weather losses, production has been curbed by uprooting of vines in countries such as France in response to declining demand. REUTERS