STATE OFTHE WORLD VINEAND WINE SECTORIN2023STATE OF THE WORLDVINE AND WINE SECTORIN 2023International Year of Vine and Wine 1924.2024APRIL 20242STATE OF THE WORLDVINE AND WINE SECTORIN 2023THE YEAR 2023 IN A NUTSHELL s1 .VINEYARD SURFACE AREA 61.1·World vineyard61.2.Major vine-growing countries 72·WINE PRODUCTION92.1.World wine production 92.2.Major wine-producing countries in the Northern Hemisphere 92.3.Major wine-producing countries in the Southern Hemisphere 103·WINE CONSUMPTION3.1.World wine consumption 123.2.Major wine-consuming countries 134.INTERNATIONAL TRADE IN WINE 154.1.World trade volume and value 154.2.World trade by product type 164.3.Major wine exporters 174.4.Major wine importers 19APRIL 2024STATE OF THE WORLDVINE AND WINE SECTOR IN 2023List of figuresFigure 1.Evolution of world vineyard surface area 6Figure 2.Evolution of world wine production(juices and musts excluded)9Figure 3.Evolution of world wine consumption 12Figure 4.Evolution of international trade in wine by volume 15Figure 5.Evolution of international trade in wine by value 15Figure 6.Evolution of the average price of world wine exports 16List of tablesTable 1.Vineyard surface area of major vine-growing countries 8Table 2.Wine production (juices and musts excluded)in major countries 11Table 3.Wine consumption in major countries 14Table 4.Breakdown of international trade in wine by product type 16Table 5.Major wine exporters 18Table 6.Major wine importers 20Abbreviationsha:hectareskha:thousands of hectaresmha:millions of hectaresl:litreskhl:thousands of hectolitresmhl:millions of hectolitresm:millionbn:billionEUR:eurosProv.:provisionalPrel:preliminaryAPRIL 2024STATE OF THE WORLDVINE AND WINE SECTORIN 2023THE YEAR 2023 IN A NUTSHELLIn 2023,the global vine and wine sector faced tough challenges.Withhistorically low production volumes and rising prices,the year was definedby the lingering effects of the global inflationary pressures that started in2022.Key HighlightsVineyard Surface Area:The world's vineyard surfacearea continued its decline,shrinking by 0.5%from 2022to 7.2 million hectares.This trend,observed for the thirdconsecutive year,was driven by the removal of vineyards inmajor vine-growing regions (including all types of grapes)across both hemispheres.Wine production:Extreme climatic conditions andwidespread fungal diseases severely impacted manyvineyards worldwide,culminating in a historically low globalwine production of 237 million hectolitres.This marked a 10%drop from 2022 and represented the lowest output since 1961.Wine Consumption:Global wine consumption in 2023 isestimated at 221 million hectolitres,indicating a decreaseof 2.6%compared to 2022's already low figures.The spikein production and distribution costs,driven by inflationarypressures,led to higher wine prices for consumers,whowere already dealing with diminished purchasing power.Despite these challenges,a few major markets demonstratedresilience.International trade in wine:The international trade inwine in 2023 was also notably affected by the rise in prices.Although the total volume of wine exported dropped to 99million hectolitres,this was offset by a high export value,which reached 36 billion euros.The average price per litre ofexport wine hit a record high of 3.62 euros per litre.APRIL 2024STATE OF THE WORLDVINE AND WINE SECTORIN 20231.VINEYARD SURFACE AREAli·World vineyardIn 2023,the world's vineyard surface area stands at7.2 million hectares,marking a slight decrease of 0.5%compared to 2022.This decline,illustrated in Figure 1,signifies the thirdconsecutive year of shrinking vineyard surfaces globallyThe trend is attributed to a reduction in vineyardsurface across major vine-growing countries in bothhemispheres,with only a few exceptions.The trend hasbeen noted both for wine and table grapes/dried grapesproduction.Moreover,China's vineyard surface,whichhas been one of the main drivers of the world vineyard'sgrowth from 2012 to 2020,stabilised from 2020 onward.7.97.87.6757.47372200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023Prov.Prel."The vineyard surface area refers to the planted area with vines for all purposes (wine grape,table grape,and grape to be dried),including young vinesAPRIL 2024STATE OF THE WORLDVINE AND WINE SECTORIN 20231.2.Major vine-growing countriesThe European Union's (EU)vineyard landscapeTurkiye hosts the fifth largest vineyard in the worldwitnessed an overalldecrease of-0.8%in 2023,totallingin 2023.with an estimated vineyard surface area of3.3 mha.The modest expansions reported in Italy,410 kha.In the last ten years,Turkiye recorded aGermany,and Greece did not offset the level of vineyardremoval observed in other EU countriesIn South America,Argentina's vineyard area decreasedAt the country level,Spain,the largest vineyard in theby 1.1%,reaching 205 kha in 2023.Similarly,Chile sawworld,accounts for 945 kha in 2023 and has decreaseda significant drop of -5.6%,totalling 172 kha.Brazil,by 1.0%compared to 2022.Similarly,France,with thehowever,expandeditsvineyard for thethird consecutivesecond largest area under vines,saw a decrease ofyear,reaching 83 kha (+1.5%/2022).0.4%.setting at 792 kha.Italy continued its positivetrend since 2016,reaching 720 kha.Romania(187 kha)South Africa's vineyard area(122 kha)diminished byand Portugal (182 kha),the fourth and fifth largest1.9%,marking the ninth consecutive year of decline,EU vineyards,report a decline in surface areas in 2023attributed in part to severe droughts between 2015 andof -0.5%and -5.8%,respectively.Conversely,Germany2017.(104 kha)and Greece(94 kha)recorded slight increasesof +0.3%and +0.9%,respectively.Australia's vineyard remained stable at 159 khaconsistent with the average observed over the last fiveOutside the EU,Moldova maintained its position as theyears.largest vineyard in Eastern Europe with 117 kha,whileRussia reported a surface area of 105 kha.After a long period of significant expansion from 2000to 2015,the growth of the vineyard in China,third inthe world by size,has slowed down in recent years andis estimated at 756 kha in 2023(-0.3%/2022).APRIL 2024SSZLLI8%80989699L99%00OL89SLSL8088%008L08%6068696%0000680LEOLSOL666%00%00%006SL6SL%0'0S9LL9L6p叫S6LS6L%97L8L%000+%80-8#OZL8SLSLZ6LS6L66L%1'EL996ZL68L0ZSTATE OF THE WORLDVINE AND WINE SECTOR IN 20232·WINE PRODUCTION2.1.World wine productionIn 2023,global wine production,excluding juices andIn some countries,a rainy spring led to fungal pressuremusts,is estimated at 237 mhl,marking a significantfloods,damages,and losses in the vineyards.On thedecrease of nearly 25 mhl(-9.6%)compared to 2022.contrary,in other regions,primarily in the southern EUThis downturn reflects one of the most significantsevere droughts caused hydric stress to the vines.Onlydeclines witnessed in recent history.After maintaininga few countries benefited from relatively favourableproduction levels consistent with the 20-year averageweather conditions,yielding average or above-averagefor four consecutive years,2023's volume represents theharvest volumes.lowest volume since 1961(214 mhl).France,the world's leading wine producer in 2023,The sharp decline can be attributed to a confluenceachieved an estimated volume of 48 mhl,representingof adverse climatic events,including early frost,heavy20%of the global total.Notably,this figure is not onlyrainfall,and drought,coupled with widespread fungal4.4%higher than in 2022 but also exceeds the country'sdiseases.These factors severely impacted harvestlast five-year average by 8.3%.volumes across major wine-producing regions in boththe Northern and Southern Hemispheres.Italy,the second-largest wine-producingnationglobally,faced historicallylow production levels in 20232.2.Major wine-producing countrieswith a notable 23.2%decrease,totalling 38.3 mhl.Thisin the Northern Hemispheremarks the smallest production since 1950,attributed toheavy rainfall fostering downy mildew in central andVinified production in the EU in 2023 is estimatedsouthern regions,along with flood and hail damage.at 144.5 mhl,which represents a sharp decrease of10.6%(17 mhl)compared to 2022.This places it as theSpain also experienced a notable decline,reaching itssecond-lowest production volume recorded since thelowest production since 1995,with an estimated outputbeginning of the century,only behind 2017's output ofof 28.3 mhl,down 20.8%from 2022 and 25.7%below141 mhl.the last five-year average.This downturn was primarilydriven by severe drought and extreme temperaturesAt the country level within the EU,the picture is varied,impacting vineyards during the growing season.reflecting diverse climatic conditions experiencedacross major wine regions during the 2023 growingseason.Figure 2.Evolution of world wine production (juices and musts excluded)30029027026025024020002001200220032004200520062007200820092010201201220132014201520162017201820192020202120222023Prov.PrelaProduction volume resulting from wine grapes harvested in the first semester of 2023 in the Southern Hemisphere and in the second semester of 2023 inAPRIL 2024STATE OF THE WORLDVINE AND WINE SECTORIN 2023Among the other major EU countries,Germany2.3.Major wine-producing countries(8.6mhl,-3.8%/2022),Hungary(2.4mhl,-2.1%/2022,in the Southern HemisphereAustria (2.4 mhl,-6.5%/2022)and Greece (1.4 mhl-34.4%/2022)recorded smaller than average productionAfter twolarge production volumes in 2021 and 2022,thevolumes attributed to various climatic challenges.TheSouthern Hemisphere experienced a notable decline inharvest in Greece was particularly low due to the heavywine production in 2023,totalling 47 mhl,marking arainfalls during spring which caused downy mildew,as15.4%decrease from 2022 and a 13.2%drop from the lastwell as elevated temperatures and drought in summerfive-year average.Thisrepresents the lowest productionmonths that strongly impacted the vines.Converselylevel since 2003,attributed to extreme climatic eventsPortugal (7.5 mhl,+9.8%/2022)and Romania(4.6 mhl.across major wine-producing regions.+21.2%/2022)recorded relatively large productionvolumes exceeding those of the previous year.The majority of South American wine-producingcountries have registered a sharp fall in production withConcerning other countries outside the EU,Russiarespect to 2022.In 2023,Chile was the largest producer(4.5 mhl)reported a 2023 production level that is inin South America,with wine production estimated atline with its last five-year average,but 10%lower than11.0 mhl,11.4%below 2022 production due to wildfiresthe large production volume of 2022.Wine productiondroughts and flooding.Argentina's wine production fellin Georgia is estimated at 1.9 mhl,a decrease of 3.0%to 8.8 mhl (-23.0%/2022),primarily due to spring frostscompared to 2022.Moldova's vinified production isand hailstorms.This represents the lowest volumeestimated at 1.8 mhl (+27.0%/2022),the third largestrecorded since 1957.On the contrary.Brazil experiencedvolume recorded in the last ten years.Switzerlandan increase in its wine production with a total volume ofrecorded a wine production of 1.0 mhl,which is in line3.6 mhl,which is not only 12.1%above the previous yearwith2022(+1.8%).but also 31.4%above its last five-year average.In Asia,China is the largest wine producer with a 2023South Africa's 2023 wine production is estimated atvolume estimated at 3.2 mhl,a reduction of 33.0%9.3 mhl,a decrease of 10.0%compared to its 2022levelcompared to the previous year.Fungal diseases,notably powdery and downy mildew,heavily impacted the harvest.In the USA,wine production in 2023 is estimated at24.3 mhl,a level 8.5%higher than in 2022 but in line withIn Oceania,Australia faced a significant reduction inits five-year average.This relativelylarge production hasproduction to 9.6 mhl,down 26.2%from 2022.Thisbeen favoured by cool temperatures and heavy winterdecline was primarily attributed to adverse weatherrains in the Napa and Sonoma regions.conditions,including persistent rainfall,unusuallycold temperatures,and floods,exacerbated by theeffects of La Nina.Additionally,inventory pressuresled to a reduction in yield.Conversely,New Zealand'sproduction of 3.6 mhl saw positive growth comparedto its last five-year average,despite a 5.8%decreasefrom 2022,indicating resilience amidst challengingconditions.APRIL 2024%96L6S6'LSZ%69-Z'EL9'SL80%90忆%0ST%80%0T%S9-忆9969999'E8EE'EO'SO'E%90-%S6%2'IZ9'+8E8E%86SL89r9%67-9868%L'E88O'EL80S68+L%S0%6TE'82uedsZZ-8LBAE/EZZZ/EZSTATE OF THE WORLDVINE AND WINE SECTORIN 20233·WINE CONSUMPTION3.1.World wine consumptionWorld wine consumption in 2023 is estimated atHowever,in 2022,geopolitical tensions,particularly the221mhl,marking a decrease of 2.6%compared to 2022conflict in Ukraine,and subsequent energy crises,alongIf this estimate is confirmed-,it would signify the lowestwith disruptions in the global supply chain,resultedvolume recorded since 1996.The decline in global winein heightened production and distribution costs.Thisconsumption has followed a relatively steady trajectoryin turn,led to significant price increases for winesince 2018.Several factors contribute to this trend.consumers,dampening overall demand.Notably,the decreasein China's consumption,averagingAgainst the backdrop of a complex economic landscape,a loss of 2 mhl annually since 2018,has played a centralcharacterised by global inflationary pressures,therole in driving down global consumption figures.Themajor wine markets experienced notable declines inonset of the COVID-19 pandemic in 2020 exacerbated2023.A few exceptions notwithstanding,the prevailingthis downward trend,with lockdown measuresconditions exerted considerable pressure on consumernegatively impacting major wine markets worldwide.Inpurchasing power,further contributing to the downturn2021,the relaxation of pandemic-related restrictionsin wine consumption worldwide recorded in the lastcoupled with the reopening of the hospitality sectortwo years.(HoReCa)and the resurgence of social gatherings andfestivities,led to a reboundin consumption across manycountries.Figure 3.Evolution of world wine consumption25250245240235230225220215200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023Prov.Prel.It usually takes about three years to have consolidated data.APRIL 2024STATE OF THE WORLDVINE AND WINE SECTORIN 20233.2.Major wine-consuming countriessIn 2022,the EU represents a market of 107 mhl,Outside the EU,the UK,ranked fifth globally,saw a 2.9%accounting for 48%of the world's consumption.Thisdecrease in wine consumption in 2023,estimated atfigure reflects a marginal decrease of 1.8%compared12.8 mhl.Conversely,Russia's wine consumption roseto the previous year,placing EU wine consumptionby 3.0%,reaching 8.6 mhl,returning to pre-COVID-19more than 5%below its ten-year average.Thislevels.Switzerland recorded the lowest winedecline is attributed to an overall reduction in wineconsumption volume of the 21 century,estimated atconsumption observed in some of the major traditional2.3 mhl,reflecting a 3.0%decrease from 2022wine-producing countries.In the USA,the largest wine market globally,Within the EU,France maintains its position as thelargestconsumption decreased by 3.0%in 2023,reachingconsuming country,with an estimated consumption of33.3 mhl.Similarly,Canada with 4.8 mhl witnessed24.4 mhl in 2023,marking a 2.4%decrease from 2022a decline of 5.6%compared to 2022,marking the firstItaly,the second-largest market in the EU and thirdtime since 2016 that total consumption fell below 5 mhl.globally,saw a consumption level of 21.8 mhl in 2023down 2.5%from the previous year and 5.8%belowIn Asian markets,China's wine consumption plummetedits five-year average.Germany,the third-largest EUby 24.7%in 2023,totalling 6.8 mhl,reflecting an overallmarket,recorded a consumption volume of 19.1 mhl indecline in internal demand.Japan,the second-largest2023.a modest decline of 1.6%from 2022.consumer in Asia,experienced an increase of 2.1%from2022,reaching 3.2 mhl.This volume is,however,4.2%Spain is one ofthe few large markets that did notseea fallbelow its last five-year average.in consumption in 2023,reporting a total consumptionvolume of 9.8 mhl (+1.7%/2022).Conversely.PortugalIn South America,Argentina's consumption decreased(5.5 mhl)and the Netherlands (3.3 mhl),recordedby 6.2%in 2023,reaching 7.8 mhl,the lowest level inthe largest declines in consumption among major EUrecent history.Brazil,the region's second-largestmarkets with a -9.2%over 2022.It is worth noting thatmarket,saw a notable increase of 11.6%,returning towhile Portugal's consumption volume in 2023 exceeded2020-2021 levels with an estimate of 4.0 mhlits last five-year average by 5.1%,indicating relativestability,the Netherlands reported a consumption levelSouth Africa's consumption in 2023 totalled 4.5 mhl,9%below its last five-year average,underscoring a morea marginal 1.8%decrease from the previous year'spronounced deviation from historical consumptionrecord-high volume.patterns.Notably.Romania (3.0 mhl).experienceda significant upswing,with a 20%increase in wineAustralia's consumption remained relatively stableconsumption levels,fully recovering from the previousat 5.4 mhl,showing a consistent trend over the pastyear's low consumption volume.Austria (2.3 mhldecade.-2.1%/2022)has shown a very stable consumption trendsince 2015.Similarly to the Czech Republic(2.2 mhl,-3.7%/2022),which recorded a decline with respect tothe previous year,reaching a level in line with its lastfive-year average."The estimates of national wine consumption levels presented in this chapter warrant careful interpretation due to the inherent limitations of the"apparent consumption"methodology (apparent consumption is a proxy measure for consumption defined as production plus imports minus exports,and stock management processes of impor ters and distributors),losses,or industrial uses of wine are not fully known or assessed.APRIL 2024%000L%80-E'9E%0T%0TO'EIESESESEEE9E%9119E%8T-o'EIS098's%76-s's&'S%I'E89r6%5'EE886898898%LT866L'OLL'EIn%98I'6I6LL'6L%66&'8EI'EELZZ/EZSTATE OF THE WORLDVINE AND WINE SECTORIN 20234.INTERNATIONAL TRADE IN WINE4.1.World trade volume and valueIn 2023,low production volumes in the SouthernThis resilient performanceis attributed to a significantlyHemisphere,high average export prices and weakenedhigh average export price of 3.62 EUR/1,marking ainternational demand significantly impacted the global2%increase compared to 2022.As shown in Figure 6,wine export volume,which decreased by 6.3%tothis is the highest price level ever recorded,29%above99.3 mhl,the lowest recorded since 2010.The largestthe average of 2020.However,it is important to notecontributors to this decline in world trade volumethat this sharp rise in prices primarily stems fromwith respect to 2022 are Chile (-1.5 mhl),South Africahigher costs incurred by producers,importers,anddistributors,a direct consequence of global inflationaryZealand (-0.7 mhl),and Argentina (-0.7 mhl).pressures.The three countries contributing the most tothe decrease in global export value compared to 2022Despite a 4.7%decrease compared to the record highare Chile (-04 bn EUR),France (-0.3 bn EUR)and theof 2022,the global wine export value in 2023 reachedUSA (-0.3 bn EUR).36.0 billion EUR,the second highest ever recorded.Figure 4.Evolution of international trade in wine by volume120110100908070605020002001200220032004200520062007200820092010201120220132014201520162017201820192020202120222023Figure 5.Evolution of international trade in wine by value40353025201510200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023*Data on export prices are based on cross-border data.APRIL 2024