Oiv: in 2021 global wine consumption at 236 million hectoliters. Export is worth 34 billion euros

In 2021, global wine production reached 260 million hectoliters, while the total area under vine stood at 7.1 million hectares, global consumption reached 236 million hectoliters and overall exports grew to 111.6 million hectoliters, for a turnover of 34.3 billion euros. These are the assets that emerged from the WineNews analysis of the report “State of the World Vine and Wine Sector 2021”, presented today by the OIV - International Organization of Vine and Wine, headed by Professor Luigi Moio.

Wine production in 2021, excluding juices and musts, is estimated at 260 million hectoliters, 3 less than 2020 (-1%). A slight drop, the third consecutive year below the ten-year average, the result of the strong decline of some of the main producers in the European Union balanced by the excellent performance of the Southern Hemisphere countries. EU production, in 2021, stopped at 153.7 million hectoliters (-8% compared to 2020 and -5% on the average of the last 5 years), due to the frosts that, in spring, mainly hit France. Italy (50.2 million hectoliters, 19.3% of all wine produced in the world), France (37.6 million hectoliters, 14.5% of global production) and Spain (35.3 million hectoliters, 13.6% of wine produced in the world) represent 47% of world wine production, but only Italy has marked a growth both on 2020 (+2%) and on the average of the last 5 years (+3%). France, on the other hand, recorded the worst campaign of the 2000s, with April frosts leading to a 19% drop compared to 2020 and 14% on the average of the last 5 years. Spain is also down: -14% compared to 2020 and -8% on the average of the last 5 years.

Much better, overall, the 2021 harvest in the Southern Hemisphere, which touches the record of 59 million hectoliters (+19% compared to 2020). After the drop in 2020 and the effects of "El Niño" in 2019, South America recovers: Chile touches its historical maximum, with 13.4 million hectoliters of wine produced in 2021 (+30% compared to 2020), Argentina reaches 12.5 million hectoliters (+16% on 2020 and +5% on the average of the last 5 years), and Brazil marks the maximum wine production since 2008, with 3.6 million hectoliters (+60%). Less evident is the growth of South Africa, with 10.6 million hectoliters of wine produced in 2021 (+2%), while Oceania shows two opposite faces: on the one hand, Australia, with 14.2 million hectoliters, marks +30% compared to 2020 and +14% on the average of the last five years, on the other hand, New Zealand stops at 2.7 million hectoliters, 19% less than the excellent 2020 campaign.

The global area planted with vines, in 2021, is estimated at 7.3 million hectares, slightly less (-0.3%) than in 2020, and includes all types of plantings, those for wine grapes, table grapes, raisins and those just planted and not yet in production. Thus, as of 2017, the numbers tell of a global balance that rests, however, on a heterogeneous evolution in different parts of the world. On the one hand, Italy and France in Europe, together with China and Iran in the East, are pushing up the areas planted with vines; on the other hand, the large producers in the Southern Hemisphere (with the exception of Australia and New Zealand), but also the USA, Turkey and Moldova are seeing a contraction in areas, thus balancing the positive trend in Europe and Asia. The vineyard of the European Union has stood for some years at 3.3 million hectares, stability linked to the management of authorizations for new plantings which allows an annual growth of 1% on the existing vineyard. The largest vineyard in the world is that of Spain (964,000 hectares in 2021, -0.4% compared to 2020, equal to 13.2% of the global vineyard), then France (798,000 hectares, +0.2%, 10.9% of the total) and Italy (718,000 hectares, as in 2020, 9.8% of the total). Germany is also in balance (103,000 hectares), while Portugal (194,000 hectares, -0.2%), Romania (189,000 hectares, -0.7%) and Hungary (64,000 hectares, -1.2%) are losing something.

Outside the borders of the European Union, the vineyards of Moldova (138,000 hectares, -1.4%), at the center of a vast renewal plan launched by the government in 2010, are decreasing. Russia, on the other hand, is growing (98,000 hectares under vines, +0.8%). Turkey, on the contrary, has lost 85,000 hectares under vine since 2014, and will stand at 419,000 in 2021 (-2.7% compared to 2020, 5.7% of the total). In line with 2020, China's vineyard, estimated at 783,000 hectares (10.7% of global vineyard area, while the US vineyard area stands at 400,000 hectares. In the Southern Hemisphere, the decline in the area planted with vines continues in Argentina (211,000 hectares, -1.7%), also due to climatic conditions and lack of water. In Chile, on the contrary, areas under vines are growing (210,000 hectares, +1%), and Brazil stops its decline (81,000 hectares, +0.2%). Down goes South Africa’s vineyard (126,000 hectares, -2%), down consecutively since 2014, partly due to drought. Finally, both Australia (146,000 hectares) and New Zealand (41,000) confirm 2020 levels.

Global wine consumption, in 2021, is estimated at 236 million hectoliters, 2 million more than in 2020 (+0.7%), when the structural drop in Chinese consumption was obviously added to the devastating effect of the pandemic and the closures of bars and restaurants. The countries of the European Union, with 114 million hectoliters of wine consumed, represent 48% of global consumption, 3% more than 2020, a negative historical record and on average with the last 10 years. However, this share is constantly decreasing, 20 million hectoliters less than in 2000, when the EU represented 59% of global consumption, partly because of the growth of other markets, partly because of the trend towards an increasing healthiness of European consumption. The first wine consumer in Europe (and second in the world) is still France, with 25.2 million hectoliters in 2021 (11% of total wine consumption), up +8.6% compared to 2020, but also + 2% compared to 2019. Italy is therefore the second largest market of the Old Continent, with 24.2 million hectoliters of wine consumed in 2021 (10% of the world total), as in 2020, the highest since the financial crisis of 2008. Germany follows, the fourth largest market in the world, with 19.8 million hectoliters of wine consumed in 2021 (-0.2% compared to 2020, but still 8% of global consumption), then Spain, which reaches 10.5 million hectoliters (+9.9% on 2020), at pre-pandemic levels.

There was also a positive rebound in wine consumption in Romania (4 million hectoliters, up 4.6%), the Netherlands (3.8 million hectoliters, up 3.4%), Austria (2.4 million hectoliters, up 2.3%) and the Czech Republic (2.3 million hectoliters, up 11.9%). On the other hand, consumption in 2021 was down in Portugal (4.6 million hectoliters, down 0.6%), Belgium (2.5 million hectoliters, down 4.1%), Greece (2.2 million hectoliters, down 0.4%) and Sweden (2.1 million hectoliters, down 0.3%). After the resilience shown in 2020, consumption in Great Britain is also growing, at 13.4 million hectoliters (+3.4%, 6% of global consumption). It lasts for four years, instead, the growth trend of Russia, which in 2021 drank 10.5 million hectoliters of wine (+2%). On the contrary, Switzerland’s consumption falls for the third consecutive year, with 2.6 million hectoliters (-1%). The first market in the world, of course, is still the United States, with 33 million hectoliters of wine consumed in 2021, in line with 2020, equal to 14% of global consumption. China’s consumption decline does not stop: -15% compared to 2020 to 10.5 million hectoliters, but since the peak of 2017, 9 million hectoliters of wine consumed have already been lost, with a decidedly relevant global impact. Japan does not do well either, with 3.3 million hectoliters (-5.4%).

The situation is more complex in South America, where Argentina stopped at 8.4 million hectoliters, down 11.1% compared to 2020 marked by significant growth despite the pandemic, due to the collapse of purchasing power and the boom in inflation, a cyclical drama in Buenos Aires. Brazil's trend is more linear, with 4.1 million hectoliters (+1.2%). South Africa, which in 2020 paid dearly for the 14 weeks of a total ban on alcohol sales, in 2021 returned to 4 million hectoliters of wine consumed (+27.5% compared to 2020 and -5.3% on the average of the last five years. Finally, Australia, the tenth largest wine consumption market in the world, with 5.9 million hectoliters, the highest ever, growing both compared to 2020 (+0.3%) and the average of the last five years (+7.9%).

Moving on to the international trade front, with 111.6 million hectoliters, 2021 saw record volumes of wine shipped around the world, up 4% on 2020, and even better were the values, at 34.3 billion euros, 16% more than 2020. The leading exporter, in terms of quantity, is Spain, with 23 million hectoliters of wine shipped in 2021, equal to 21% of global wine trade (+2.8 million hectoliters). Italy (+1.5 million hectoliters), South Africa (+1.2 million hectoliters) and France (+1.1 million hectoliters) are also growing, while, among the top exporters, only Australia (-1.3 million hectoliters), Argentina (-0.6 million hectoliters) and the USA (-0.3 million hectoliters) are losing something. In terms of value, France confirmed its historic leadership with 11.1 billion euros of wine shipped across the border, and apart from Australia, which left 435 million euros on the ground compared to 2020, all the major world wine players in 2021 did better than the previous year, starting with France itself (+2.3 billion euros), passing through Italy (+786 million euros) and Spain (+249 million euros).

Bottled wine represents 53% of trade in volume and 69% in value (growing in 2021 by 6% in volume and 13% in value), sparkling wines represent 10% of global wine shipments in volume and 22% in value, bag-in-box represents 4% of global wine export volumes and 2% in value, and the remaining 33% is represented by bulk wines, which, however, weigh much less in value, just 7%.

Spain, Italy and France together exported 59.9 million hectoliters, or 54% of global wine exports, 5.4 million hectoliters more than in 2020. In terms of volume, Spain, with 23 million hectoliters, grew by +14%, Italy, with 22.2 million hectoliters, marked +7%, and France, with 14.6 million hectoliters, made +8%. Even in terms of value, things do not change: behind France, with 11.1 billion euros in exports (+27%), are Italy (7.1 billion euros, +13%) and Spain (2.9 billion euros, +10%), for a total share of 61% of global exports. Sparkling wines from France and Italy benefited most from the end of restrictions, growing by 33% and 21% in volume and by 40% and 24% in value, respectively. The best performers in all three countries were bottled wines, which in France grew by 7% in volume and 22% in value, in Spain by 7% in volume and 9% in value, and in Italy by 6% in volume and 10% in value.

Remaining in the EU, Germany confirmed the 2020 figures in volume, with shipments at 3.7 million hectoliters, and +8% in value, at 991 million euros. Portugal’s wine exports also did well, at 3.3 million hectoliters (+4%) and 924 million euros (+8%). In South America, Chile grew slightly, at 8.7 million hectoliters of wine exported in 2021 (+2%), for a turnover of 1.7 billion euros (+4%). On the other hand, 3.3 million hectoliters of wine left Argentina in 2021 (+15%), for a value of 700 million euros (+6.7%). Australia pays the almost complete stop of shipments to China, its reference market, and stops at 6.3 million hectoliters of wine shipped abroad (-17%) for 1.3 billion euros (-24%). New Zealand has not moved much from its 2021 figures: 2.8 million hectoliters of wine shipped (-0.6%) for 1.2 billion euros in turnover (+1.7%). Excellent figures for South Africa, which paid more for the pandemic in 2020 than any other wine-producing country, and in 2021 shipped 4.8 million hectoliters of wine (+33%), for 634 million euros (+18.6%). As already mentioned, US shipments decreased, but only in volume, to 3.3 million hectoliters (-8.9%), while in value they reached 1.2 billion euros, up 6.8%. Interesting data from Canada, which with 2.1 million hectoliters exported grew by 26%, practically only thanks to bulk, which accounts for 99% of volume shipments.

With regard to shipments, the big three for imports are the USA, Germany and Great Britain, which together are worth 42 million hectoliters, for a total turnover of 13.1 billion euros, or 38% of global imports. By volume, the top importer is Germany, with 14.5 million hectoliters, in line with 2020, for 2.8 billion euros (+6%). Fifty-six percent of the wine imported from Germany is bulk, while sparkling is worth only 5% of the market, and bottled is worth 66% of total values. The second largest importer is the United States, which in 2021 increased its purchases by 13%, to 13.9 million hectoliters, for a value of no less than 6.2 billion euros (+21%), making it by far the leading buyer by value. Overseas, bottled wine represents 53% of the volumes and 68% of the values imported, but the greatest growth is that of sparkling wines: +38% in volume and +42% in value. On the third step of the podium, in terms of volume, Great Britain, with 13.6 million hectoliters (-6.7%), which however rises to second place in terms of value, with 4.1 billion euros (+7%). Sparkling wines account for 22% of UK imports in terms of value (+19% in volume and +28% in value).

Remaining in the European Union, France, with 5.9 million hectoliters imported in 2021, lost 6% of volumes compared to 2020, while values grew by +7.3% to 821 million euros, mostly thanks to bulk wine, which represents, in volume, 75% of purchases. Holland is also doing well, with 5 million hectoliters (+7%) for a turnover of 1.4 billion euros (+11%), 84% of which is linked to bottled wine. Belgium, in 2021, imported 3.9 million hectoliters of wine, for 1.2 billion euros, with a growth of 29% in both volume and value. Italy also registered a surge in wine purchases (mainly bulk wines) from abroad: +83% in volume, reaching 3 million hectoliters, and +37% in value, at 381 million euros. Portugal imported 2.8 million hectoliters (+3%), for 161 million euros (+0.2%), while imports from Sweden decreased, in volume, to 2.1 million hectoliters (-11%), for 748 million euros (+0.1%).

Outside the European Union, Russia imported 3.7 million hectoliters, with volume growth of 6% in 2021, for a turnover of 949 million euros, in line with 2020. Better still, from the point of view of values, does Canada, with 4.2 million hectoliters of wine purchased in 2021 (-7%) for 1.9 billion euros (+10%). Asia’s largest importer, China, is still declining, importing 4.1 million hectoliters of wine in 2021 (-1.4%), for 1.4 billion euros (-10.5%). Japan also reduced its imports, at least in volume, by 5%, to 2.4 million hectoliters, for a turnover of 1.4 billion euros (+5%).