World wine consumption down, Australia loses market share

Posted by Isobel Drake on 8th April 2009

The state of world viniculture in 2008 has recorded the first effects of the world economic crisis, with world wine consumption recording a drop of 2 Miohl in 2008 compared to 2007. The overall decrease is mainly due to a further decrease in consumption in traditional large producer and consumer European countries: France, Italy and Spain, in addition to Germany, the report from the International Organisation of Vine and Wine (OIV) advised.

World areas under vines have also posted a decrease of 28 mha in 2008. The drop in community vineyards is due to vine grubbing up in some European countries.

Vineyard- Wine grapes

Global wine production in 2008, despite a considerable decrease in European production, particularly a substantial drop in French production, has recorded a slight increase of 1 Miohl, but remained similar to relatively low levels recorded in 2001, 2003 and 2007.

Almost all the large players, except France and Australia, have kept their ranking in 2008: Italy remains the world leader in volume of wine exported. The group of six new exporter countries (Southern Hemisphere and the United States) has also continued to grow. The combined market share of Australia and New Zealand, however, fell – from 10% to 9%.

“It is obvious that the world economic crisis has played a role in lowering overall demand,” declared Federico Castellucci, the Director General of the OIV. “However, the world wine market has recorded the best results with volume increasing year by year: international trade represented 37% of world consumption in 2008 compared to 18% in the beginning of the 1980’s and 35% in 2006, which signifies that close to 37% of world wines are consumed outside their country of production.”

To view the full report click here.