His majesty the red wine is beginning to be restless, because competitors are coming out to threaten his long reign. This week the annual report of the OIV, the International Wine Organization, was presented. And it emerges that his reign is faltering.
Red wine is losing appeal and has gone from representing 53% 10 years ago to 48% today. More than half of the wine consumed in the world is no longer red: this is a symbolic (and historical) milestone. "You have to adapt to a new consumer", indicated Pau Roca, OIV Secretary General, who pointed out some ideas, such as seeking an increasingly growing demand for premium wines, using reds as a base to make sparkling wines or exploring wines without alcohol".
From the OIVE, Interprofessional Wine Organization of Spain, they recognize that "there is a boom in sparkling wines, whites and rosés, light and fresh wines", although in the decline of the red one must discount some specific weakness in markets that love this variety such as China or UK. It is true that the arrival of varieties such as prosecco (a casual wine, ideal for cocktails and appreciated by young people) has already given rise to traditional sparkling wines, such as cava or champagne.
It is further proof that wine tastes are being redirected, in an economic context stressed by inflation. According to the study, the rise in prices in 2022 triggered the value of exports but caused a decrease in consumption worldwide.
“Wine exports in 2022 were severely affected by high inflation and disruptions in the global supply chain, which caused a significant slowdown in shipping. This combination of events translated into a lower global volume of wine exported at a much higher average price (15% compared to 2021)”, the study states.
Thus, the value of world exports of this drink was the highest ever recorded (37,600 million euros) with an increase of 15%. On average globally, the price of bottled wine rose 7%, while that of sparkling wines shot up 18%. The rise is a reflection of the increase in costs borne by the wineries: for example, inflation caused a 30% rise in the prices of glass bottles and labels, 20% of corks and the wire that closes sparkling wines and 45% of cardboard boxes.
The other side of the coin was lower demand. World consumption reached 232 million hectoliters (mhl), which represents a decrease of two million compared to 2021. “There was an increase in production and distribution costs. This translated into a significant increase in wine prices for consumers”, they acknowledge from the OIV.
According to the report, this negative trend that began in 2018 can be mainly attributed to the decline in consumption in China, which has lost an average of 2 mhl per year since 2018. A contraction that was accentuated in 2020 by the pandemic, which had a depressing effect on many great wine markets.
In any case, the current levels of wine consumption in the world are well below the average of previous years and, in fact, last year consumption dropped to the same amount of wine that was consumed twenty years ago. In Europe, the homeland of wine, 15% less of this drink is consumed today than in 2000. “All this context of uncertainty affects wine, which is very sensitive to drops in consumer confidence. We want to believe that it is an issue that will pass”, they point out from the OIVE.
As for world production, it is stagnant: in 2022 it was 258 million hectoliters, also marking a slight decrease of 1% compared to the previous year, in which we must discount the drought and heat waves during the past spring and summer. We are not here to uncork bottles: for the fourth consecutive year, this harvest figure is slightly below its 20-year average.
If we look at data by country, the OIV study indicates that half of world production falls on three countries: Italy, France and Spain (in that order). In terms of consumption, Spain is well below. In liters per capita, France and Italy drink twice as much wine as the Spanish. The Portuguese, almost three times more.
Spain is the country with the largest area in hectares dedicated to the cultivation of wine, 13% of the total. And it is the second world exporter in volume. But, when last year the production was 5% below the average of the last five years, the drought is a threat. “The lack of rain is a tragedy. If the rains do not arrive and the summer is dry, we will suffer in the harvest that is just around the corner," the professionals comment. And they can't trust everything to red wine like before either, because the king is naked.
