Global wine consumption dropped to 208 million hectoliters in 2025, marking a 2.7% decline from the previous year and a 14% total reduction since 2018, according to data from the International Organisation of Vine and Wine (OIV). This downward trend stems from shifting consumer habits, economic instability, and climate-related production challenges, despite a slight 0.6% uptick in overall production volume to 227 million hectoliters.
Why is global wine consumption falling?
The decline in wine intake is driven by a complex mix of economic and lifestyle changes. OIV reports cite inflation, geopolitical tension, and the lingering effects of the pandemic as primary stressors on the global market. Furthermore, younger generations are increasingly showing a lower interest in alcohol consumption compared to their predecessors. This demographic shift, combined with economic instability, has weakened demand in traditional strongholds like France, Italy, and Germany.
Did you know? While total consumption is down, the wine industry is seeing pockets of growth. Countries like Portugal, Brazil, and Japan reported increased demand in 2025, suggesting that the decline is not uniform across all global markets.
How are climate change and production affecting the market?
Extreme weather events have hampered wine production for three consecutive years, from 2023 to 2025, according to OIV findings. The global vineyard area has shrunk for six straight years, with a 0.8% decrease recorded in 2025 alone. While production volumes rose slightly to 227 million hectoliters, the OIV notes that this figure is misleading; a significant portion of this output is diverted into industrial uses—such as vinegar or spirit production—rather than being bottled for commercial wine sale.
What is the current state of international wine trade?
The international wine trade has hit a period of stagnation, with exports falling by 4.7% to 94.8 million hectoliters in 2025. The total value of these exports dropped by 6.7%, reaching 33.8 billion euros. The OIV attributes this decline to heightened trade uncertainty, specifically citing US tariff policies and weakened demand in major import hubs. Despite these headwinds, the industry remains deeply interconnected, with the OIV reporting that nearly one out of every two bottles of wine is consumed outside the country where it was produced.
Regional consumption trends: A comparative look
Market performance varies significantly by region. The European Union remains the world’s largest consumer, accounting for 48% of global volume with over 100 million hectoliters consumed in 2025. However, growth is appearing in unexpected places:
- Romania: Experienced an 11% increase in consumption.
- Austria: Saw a 6% rise in demand.
- Portugal: Recorded a 5.6% growth rate.
In contrast, the United States, which remains the world’s largest single wine market at 31.9 million hectoliters, saw a 4.3% decline in consumption during the same period.
Frequently Asked Questions
- Is wine production actually increasing?
- While production rose by 0.6% in 2025, the OIV clarifies that much of this is not for standard wine sales, as poor weather has impacted quality and volume for three years.
- Which country is the largest wine consumer?
- The United States remains the largest individual wine market, despite a 4.3% drop in consumption in 2025.
- Why are vineyard areas decreasing?
- Vineyard area has declined for six consecutive years due to a combination of climate change pressures and shifting agricultural focus, according to the OIV.
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