Global wine stocks expected to decline
Wine has experienced significant growth over the last ten years, with demand continually growing from across Asia. Yet this new crop of customers is expected to go wanting with global wine production expected to drop to levels not seen for over 50 years. The International Organisation of Vine and Wine (OIV) have attributed this drop to bad weather hampering production from the world’s three largest producers France, Italy and Spain.
Estimates place production around 8% down on the previous 12-month period, totalling 247 million hectolitres. (A hectolitre is 100 litres, equivalent to about 133 standard 750ml bottles).
Each of the major producers is looking at a minimum 15% loss in stocks, with Italy leading the way with a production fall of 23% to 39.3 million hectolitres, France is next with a drop of 19% to 36.7 million hectolitres and Spain rounds off a disappointing period for European wine with production delivering 15% less stock at 33.5 million hectolitres.
With Europe having a bad run of production, it seems a good opportunity for other producing countries to capitalise on an opening market. Australian production is expected to rise 6% to 13.9 million hectolitres, as well as a 25% rise from Argentina to 11.8 million hectolitres. China too is becoming a real player in the global wine market, with signs of significant growth. If Europe doesn’t adapt to changing weather conditions soon, a bottle of Chinese wine could soon be a common sight on European tables.