OIV: data analysis of the 2022 world wine year

06/06/2023

The International Organization of Vine and Wine (OIV) presented its long-awaited annual report titled “State of the World Vine and Wine Sector in 2022.” As the highest authority on the global wine sector, OIV offers a detailed analysis of the conditions that shaped the industry during the 2022 wine year.

The report focuses on four key pillars that define the wine industry: planted area, production, consumption and international trade. Through an in-depth analysis of these aspects, the report provides a comprehensive picture of the trends, challenges and opportunities that affected the wine industry during the year.

Vineyard area

Experts have estimated the world vineyard area in 2022 at about 7.3 million hectares (mha), registering a slight decrease of 0.4 percent from the previous year. This figure includes vines for wine, juice, table grapes and dried grapes production, including young vines that are not yet productive.

During 2022, mixed trends were evident in major grape-producing countries. Countries such as Moldova, Turkey, Spain, Argentina, and the United States reduced their areas under vines, while France, along with other major producers such as India, Russia, and Brazil, saw an increase. China, Italy, Chile and Australia maintained stable areas.

In the European Union, vineyards have achieved some stability, standing at 3.3 mha. Spain is the country with the largest vineyard area in the world (955 thousand hectares), followed by France (812 thousand hectares) and Italy (718 thousand hectares).

Outside the EU, Moldova continues to reduce its vineyard area, while Russia recorded an increase for the fifth consecutive year. China experienced a deceleration in its vineyard growth, while the United States continued to reduce area due to overproduction of grapes in California.

Argentina reduced its vineyard area due to climatic factors, while Chile remained stable and Brazil experienced an increase. In South Africa, a severe drought caused a decrease in the area planted with vines between 2015 and 2017. Australia’s vineyard area remained stable (146 thousand hectares).

In summary, the world vineyard area in 2022 remained stable, with significant changes in major producing countries.

Production

In 2022, experts estimated world wine production at 258 million hectoliters (mhl), registering a decrease of nearly 3 mhl (-1 percent) compared to 2021. This decline was caused by a higher-than-expected harvest in Europe and the United States, despite drought and heat waves during the spring and summer, and average production in the southern hemisphere. Overall, dry and hot conditions in several regions of the world led to early harvests and average volumes.

EU

In the EU, wine production in 2022 reached 161.1 mhl, up 4 percent from the previous year, in line with the average of the past five years. During the 2022 growing season, observers recorded several adverse weather events such as spring frost, hail, excess heat, and drought. Despite initial concerns about yields due to extreme heat and lack of rainfall, the absence of severe grape diseases and late summer rains eventually made up for it, leading to higher yields.

The top three wine producers in the world are Italy (49.8 mhl), France (45.6 mhl) and Spain (35.7 mhl), together accounting for 51 percent of world wine production in 2022. Italy recorded relatively stable production (-1% compared to 2021 and +2% compared to the five-year average), while France recorded a significant increase (+21% compared to 2021 and +7% compared to the five-year average). Spain’s wine production stabilized (+1% compared to 2021), but remains 5% below the five-year average due to drought and water shortages in many regions.

Other EU wine-producing countries experienced negative changes in production: Portugal (down 8% from 2021), Romania (down 19% from 2021), Hungary (down 6% from 2021), Austria (down 5% from 2021), and Greece (down 14% from 2021). In particular, wine production in Greece in 2022 will be one of the lowest in decades.

EXTRA EU

Moving outside the EU, wine production in Russia in 2022 increased by 4% to 4.7 mhl. In Georgia, wine production in 2022 was 2.1 mhl, +2% over 2021 due to favorable weather and government subsidies.

Chinese wine production in 2022 dropped 29% to 4.2 mhl. In the United States, due to frost, drought and water supply shortages, wine production in 2022 is estimated to be 22.4 mhl, down 7% from 2021 and down 9% from the average of the past five years.

In South America, Chile produced 12.4 mhl in 2022, -7% compared to 2021 but +7% compared to the five-year average. Argentina is expected to see a decrease in wine production, standing at 11.5 mhl, -8% compared to 2021 and -9% compared to the average of the past five years. Brazil recorded an increase in wine production in 2022, with a volume of 3.2 mhl (+9% compared to 2021 and +14% compared to the five-year average) due to weather events associated with La Niña.

South Africa produced 10.2 mhl in 2022, down 6% from 2021, but returning to the average pre-drought levels of 2015.

In Oceania, Australia expects to produce 12.7 mhl in 2022, down 14 percent from 2021, while New Zealand produced 3.8 mhl in 2022, up 44 percent from 2021, achieving a record level of wine production due to excellent weather conditions and high international demand.

Consumption

World wine consumption in 2022 is estimated to be 232 million hectoliters (mhl), down 1 percent from 2021. This decrease is mainly due to the decline in consumption in China, which has lost an average of 2 million hectoliters per year since 2018. The pandemic has also negatively affected wine consumption, due to blockade measures, disruption of the restaurant industry and tourism. However, in 2021, with the easing of restrictions, wine consumption increased in many countries.

In 2022, the EU accounts for 48 percent of world wine consumption with about 111 mhl, slightly lower than 2021 and the average of the last decade. France is the largest wine consumer in the EU, followed by Italy and Germany. Outside the EU, the United Kingdom and Russia are the largest consumers of wine in Europe. In 2022, in the United States, wine consumption grew 3 percent from the previous year, returning to pre-pandemic levels. In China, on the other hand, consumption decreased by 16 percent due to declining domestic demand. Other important markets include Japan in Asia, Argentina in South America, and Australia. Some countries experienced increases in consumption, such as South Africa, while others experienced decreases, such as Brazil.

International trade

In 2022, a number of factors influenced international wine trade overall, including the geopolitical situation, the energy crisis, and disruptions in the supply chain. Despite a decrease in the volume of wine trade, the value of global exports reached a new record high of 37.6 billion euros, up 9 percent from 2021.

Italy was the leading wine exporter in 2022, followed by Spain and France. However, all three countries recorded a decrease in export volume compared to 2021. In terms of value, France confirmed its position as the world’s leading exporter, followed by Italy and Spain. These three countries account for 61 percent of global exports by value.

Sparkling wine showed remarkable growth in value terms, while bulk wine exports declined significantly, especially for France.

Among other major wine exporters, Chile recorded a decrease in export volume, while Argentina recorded a decrease in both volume and value. Australia recorded an increase in wine exports after a difficult year in 2021.

In 2022, the United States, Germany and the United Kingdom were the main importing countries in terms of wine imports. In particular, the United States positioned itself as the largest importer in both volume and value terms: it recorded a 17 percent increase in value imports compared to 2021, driven by all categories except bulk wine.

Overall, a number of factors affected international wine trade in 2022, including the geopolitical situation, the energy crisis, and disruptions in the supply chain. Despite the challenges, the value of global exports increased, but due to higher costs incurred by producers and traders.

 

To read the full report, click here

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