Global wine output rebounds from 60-year low
World wine production rebounded in 2018 to the highest in 15 years, however the news isn't so good for the Southern Hemisphere - volume is expected to fall in Argentina, Chile, Australia and South Africa.
As some countries are in the middle of grape harvesting, the outlook is based on first estimates. However, International Organization for Vine & Wine (OIV) director Pau Roca said it’s clear the region’s production “isn’t exactly good”.
The only country in the Southern Hemisphere to increase its harvest from the previous year was New Zealand.
Wine production hit a 60-year low in 2017, affected by extreme weather in Europe, including drought and storms.
The amount of wine produced in 2018 rose by 17%, to the equivalent of about 39 billion bottles, driven by steep rises in Italy, France and Spain, which all recorded output at least 13% above their five-year averages.
Italy kept its spot as the world’s No.1 producer, with volume surging 29%. The main European wine-growing nations had very clement weather for grapes, “contrary to 2017, which accumulated unfavorable conditions during the production season,” the OIV said.
Producers battle falling consumption
OIV estimated that worldwide consumption was stable in 2018 at 246 mhl, compared with 246.7 mhl in 2017.
Mainland China recorded the largest fall in consumption among the world’s top 20 largest wine consumers, with a 6.6% decline on year to 18 mhl, according to OIV.
In Britain, consumption fell 3.1% to 12.3 mhl.
In Europe, wine consumption is stabilising in most countries, except Spain which increased for the third consecutive year with 10.7 million hectoliters in 2018.
Australian wine consumption was up 6.1% compared to 2017 and reached 6.3 million hectoliters.