World wine output set for modest 2025 recovery, says industry body

[PARIS] Global wine production is on course for a modest recovery in 2025, after a sharp downturn last year, the industry’s international body said on Wednesday (Nov 12).

However, output will continue below recent averages as climate change and changing consumer habits take their toll, the International Organisation of Vine and Wine (OIV) said.

Wine production is projected to total some 232 million hectolitres, an increase of 3 per cent over 2024, when it was the industry’s worst yearly output since 1961.

The OIV gathers data from 29 countries, representing 85 per cent of the world’s wine production.

The outlook for 2025 confirms “a period of persistently reduced global supply, impacted by climatic challenges and evolving consumption models”, it said.

The European Union, which accounts for 60 per cent of global wine production, continues to face “high climatic variability”.

France and Spain were recording very low harvests, Italy was recovering to near-normal levels, while some central and south-east European countries have improved on recent averages.

Elsewhere in the Northern Hemisphere, the US recorded “only a partial rebound” from 2024 levels.

Southern producers saw a moderate recovery, driven by improvements in South Africa, Australia, New Zealand and Brazil.

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Their rebound offset a significant decline in Chile, where production suffered from heatwaves, patchy rainfall and water shortages.

But while climate impacts have created serious problems for some producers, the overall picture is not all negative, as global wine supply adapts to softer demand, said OIV director-general John Barker.

“We should never forget that there are individuals and regions which are affected by these climate impacts,” he said.

“But, when we step back and look at it from an overall global supply and demand situation, really it is a positive picture that we are seeing: more balance between global supply and demand and that is certainly supporting stronger export pricing,” he told AFP.

Global wine consumption has been steadily declining in recent years, reaching its lowest level in more than six decades last year, based on OIV data. AFP