Europe’s wine growing regions have been hit by weather, the economy, and changing societies all at once.
The international Organisation of Vine and Wine released on April 25 its 2023 year in review report. State of the World Vine and Wine Sector in 2023, paints a bleak picture for the industry in Europe and across the globe. The industry is being hit simultaneously by extreme weather events, uneven economic conditions, and changing cultural tastes. While the surface area under cultivation dropped by 0.5% in 2023 compared to 2022, production sank by 10% to 237 million hectoliters. This is the lowest amount of wine production since 1961.
European wine by the numbers
Europe recorded very low production volumes, with the EU coming in 11% lower than in 2022 at 145 million hectoliters. This volume puts 2023 just above the worst year on record, 2017, which saw 141 million hectoliters made. Grapes across Europe were affected by extreme weather, including flooding and heatwaves. At the same time, problems with fungus, exacerbated by the weather, also took their toll.
The only major producer in Europe to see a positive year in terms of volume was France, which led global wine production in 2023 with 20% of the world’s output. France produced 48 million hectoliters of wine, which is 4.4% more than in 2022. The figure is especially remarkable because it beats the running five-year average by 8.3%.
Italy, on the other hand, suffered greatly. While the area under cultivation grew slightly, production was down 23.2% to 38.3 million hectoliters. This is the lowest volume produced since 1950 and is weather related. Floods and hail attacked the north, and heavy rainfall created conditions that fostered downy mildew south of there.
Spain reached a low since 1995 for its output, which reached 28.3 million hectoliters, or 20.8% less than in 2022 and 25.7% under the running five-year average. Unlike Italy, Spain was beset by drought and extremely high temperatures at inopportune times.
Elsewhere in Europe, Austria, Germany, and Hungary saw single digit declines, while Conversely, Portugal (7.5 million hectoliters, +9.8%/2022) and Romania (4.6 million hectoliters, +21.2%/2022) managed impressive rises.
Consumption fell within the EU as well. Estimated consumption in France declined 2.4% y-o-y to 24.4 million hectoliters in 2023. Italy ranked second, with consumption down 2.5% to 21.8 million hectoliters in 2023. This figure is also 5.8% under the running five-year average. Germany dropped less, at 1.6% below 2022 and 19.1 million hectoliters in 2023. Overall, the EU accounted for 48% of global wine consumption, despite a downward trend on the continent.
