Supply chain disruptions and the war in Ukraine could curb global wine trade after it rebounded last year to a record level as countries eased coronavirus-related restrictions, international wine body OIV has said.
Details
World wine trade, as measured by total exports, increased by 16% in value to €34.3 billion and by 4% in volume to 111.6 million hectolitres (mhl), with both indicators marking all-time highs, the International Organisation of Vine and Wine (OIV) said.
One hectolitre is the equivalent of 133 standard bottles.
"In 2021, we saw an overall recovery of the wine market. The real challenge is how the sector will face up to the situation in 2022," Pau Roca, the OIV's director general, told a news conference.
After the pandemic contributed to logistical backlogs and rising costs, Russia's invasion of Ukraine could further fan inflation and depress consumer demand, he said.
Western sanctions against Moscow could affect trade with Russia, which spent €949 million on wine imports last year, mostly from Italy, France and Spain, he added.
Last year's growth was driven by the world's top three wine exporters Spain, Italy and France, which accounted for just over half of total exports, OIV said.
France's wine industry has already reported record export sales for 2021.
Among importers, the United States remained the top destination in value terms, with imports rising 21% to €6.2 billion last year, OIV said.
US import volumes rose 13% to 13.9 mhl, overtaking Britain as the world's second-largest importer as Brexit contributed to a contraction in UK imports.
Germany remained the biggest importer by volume with stable imports at 14.5 mhl.
Total world wine consumption grew by 1% in volume, stemming a decline seen since 2018 linked to a sharp drop in Chinese demand following an earlier wine boom, OIV said.
Global production in 2021 was estimated at 260 mhl, down 1% from the previous year as weather-hit grape harvests in western Europe outweighed record output in the southern hemisphere.
Above Initial Forecast Range
The estimate was nonetheless above an initial forecast range of 247.1-253.5 mhl given by OIV in November, with Italian output notably revised upwards.
News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.
