Volume of wine produced in Europe will dip by 0.5% in next decade
Europe’s total volume of wine produced will drop by 0.5% over the next ten years, with yields of 155 million hectolitres, according to the European Commission’s directorate-general for agriculture. (DG Agri)
The decline is being attributed not so much to a drop in average yields – which are stable at 53 hl/ha despite increasing environmental standards – but rather to an "almost invisible decline" in production potential; although vineyard area is stable at 3 million hectares, a 0.9% drop in small vineyards is predicted. DG Agri believes that European wine production will become more concentrated as large numbers of vineyard owners retire with no one to take over their business.
The European Commission also ascribes the reduction in production to the low competitive edge of vineyards that no longer meet consumer demands. “Consumption of red wine in particular, often associated with the traditional evening meal at home, is declining in Europe. Demand for white, rosé and sparkling wines, which generally have lower alcohol levels and can be drunk on more occasions, is increasing”, said the DG Agri.
As consumers become more health aware, the volume of wine consumed in Europe is expected to fall to 24.5 litres per adult in 2030, compared with the current 25.3 litres per person, and 25.9 litres in 2012.
Although exports have surged over the last decade, up by 6% to 24 million hl in 2019, growth will slow over the next ten years, up by 1% to 26 million hl in 2030.
“Despite strong competition from other producer countries and possible trade tensions, in particular with the United States, European exports [should] be driven by strong demand for wines with a geographical indication”, continued DG Agri.