Wine and Globalization
The global wine industry is on a downward trajectory, driven by a combination of waning demand, climate change and trade disputes.
February 27, 2026
Global wine consumption is down by approximately 12% from its peak in 2007.
Wine production has fallen by 20% over the past 20 years, with few of the world’s key vineyard regions remaining unscathed.
Areas with vineyards supplying grapes in bulk to large-scale winemakers are most exposed.
Total wine production reached 237.3 million hectoliters in 2023 — a 10% decline compared to 2022.
Even though wine production has fallen by a fifth over the last 20 years, many winemakers are still sitting on extra stock.
Wine producers have to contend with shifting tastes — and with younger generations increasingly opting for different beverages or shunning alcohol altogether.
There is also a sharp fall in demand from China, one of the industry’s main export markets, as well as the impact of climate change and grape gluts in some regions.
Because of the sinking demand for wine, some grape producers are switching to fruit or vegetables.
In the French region of Bordeaux, for example, crop switching to olives or even solar panels has become increasingly common.
The global wine industry was valued at over $330 billion in 2023 — with France, Italy and Spain being the largest producers.
Sources: Frank Knight, Forbes, Nielsen, World Population Review, Statista
Takeaways
The global wine industry is on a downward trajectory, driven by a combination of waning demand, climate change and trade disputes.
Wine producers have to contend with shifting tastes — and with younger generations increasingly opting for different beverages or shunning alcohol altogether.
Wine production has fallen by 20% over the past 20 years, with few of the world’s key vineyard regions remaining unscathed.
