Last week, the International Organisation of Vine and Wine (OIV) held a press conference at its headquarters in Dijon, France, releasing the highly anticipated 2023 preliminary report on the global state of the vine and wine industry. This annual report provides comprehensive insights into the previous year’s global grape production, consumption, and trade statistics.
In this discussion, we explore key aspects of the “State of the World Vine and Wine Sector in 2023” report, with a focus on the United States’ role and positioning in the global landscape regarding vineyard surface area, wine production, consumption patterns, and its influence on international trade dynamics.
Vineyard Surface Area Stabilizes in the United States
For the third consecutive year, the global vineyard area for all grape types experienced a marginal reduction (0.5%) compared to the previous year, now spanning 7.2 million hectares (1 hectare = 2.47 acres). Among the top six countries that account for 56% of the world’s total vineyard area, Spain retains the lead despite a 1.0% decrease in vineyard surface area. The United States has the sixth-largest vineyard surface area globally. Although the removal of vines in the United States has been reported to have slightly decreased over the past few years, the figures remained unchanged (0.0%) from the previous year.
An Increase in United States Wine Production
In 2023, global wine production significantly declined (-9.6%) compared to 2022, attributed to adverse climatic conditions and fungal diseases affecting grape yields. This decline marks the lowest production since 1961. Nonetheless, wine production in the United States is estimated to be 8.5% higher than in 2022, much of it from the substantial yields in northern California, benefiting from cooler temperatures and winter rainfall. Despite this boost, the United States remains the world’s fourth largest wine production country, behind Spain and Italy, and now France, which has claimed the top spot.
Declining Wine Consumption Trends
Global wine consumption experienced a downturn of 2.6% from the previous year. If estimates are confirmed, this decline will signify a consistent downward trend since 2018, culminating in the lowest consumption volume since 1996. Contributing factors include inflation-driven price increases and reduced consumption in China due to economic slowdown. In the United States, the largest wine market globally, consumption decreased by 3% in 2023, mirroring trends in Italy and France. Portugal retains its status as the highest per capita wine-consuming country, with the United States now ranking fifteenth compared to eighteenth in 2022.
Drop in Export Volume and Value
The combination of lower production and reduced consumption led to a 6.3% decline in wine exports in 2023 compared to the previous year, marking the lowest volume since 2010. The United States emerged as a significant contributor to this decline (-19.1%), now ranking as the tenth-largest global exporter by volume. Furthermore, the global wine export value dropped by 4.7%, with the United States being among the top three countries contributing to most of this decrease (- 25.8%). The United States now ranks as the seventh-largest global exporter by value. The average world export price of wine increased, reaching an all-time high of 3.62 euros per liter, primarily propelled by higher costs incurred by producers, importers, and distributors.
Although the results are preliminary, the 2023 OIV report illuminates the United States’ pivotal role in the global wine market amidst evolving dynamics. Despite overarching challenges such as declining production volumes, consumption patterns, and changing export dynamics, the United States remains an important player.
The “State of the World Vine and Wine Sector in 2023” report and other supporting materials with much more information than reported here are available on the OIV website.
