The Global Wine Industry Faces Historic Lows: What's Driving the Decline?

In 2024, global wine consumption hit its lowest point since 1961, marking a significant shift in drinking habits worldwide. According to the International Organisation of Vine and Wine (OIV), wine purchases dropped by 3.3% this year, continuing a six-year downward trend.

This decline stems from a combination of factors: a historic slump in French wine production, rising prices due to inflation, and a generational shift in preferences, particularly among younger consumers.

A Global Downturn in Wine Consumption

The United States, the world’s largest wine market, saw the steepest decline, with consumption falling 5.8% compared to 2023.

France, often synonymous with wine culture, followed closely with a 3.6% drop. Despite Europe accounting for 48% of the global wine market, most European countries mirrored this trend, with only Portugal and Spain reporting slight increases in consumption.

Why Are the French Drinking Less Wine?

In France, the decline is particularly striking. Changing attitudes, especially among younger generations, are reshaping the nation’s relationship with wine. A 2022 Wine Intelligence study revealed that 47% of wine in France is consumed by people over 55, while younger consumers are increasingly turning away from alcohol altogether.

Between 2021 and 2023, alcohol consumption among French youth dropped by 13%. Data from the French Observatory of Drugs and Addictive Trends shows that in 2022, one in five teenagers reported never having consumed alcohol, compared to one in four just five years earlier in 2017.

Rising wine prices are another key factor. A combination of reduced production and inflation has driven up the cost of a bottle, making wine less accessible for many consumers. This price hike is directly tied to a dramatic drop in French wine production, which fell to its lowest level since 1957, a staggering 23% decline from 2023. Extreme weather, including floods and droughts, has taken a toll on vineyards, contributing to this historic low. As a result, France lost its position as the world’s top wine producer to Italy in 2024.

Beyond Wine: A Broader Shift in Alcohol Consumption

Interestingly, the decline in wine consumption isn’t boosting other alcoholic beverages. Beer sales are also on the decline, with Heineken, the world’s second-largest brewer, reporting lower sales volumes in the first quarter of 2025. This suggests a broader cultural shift, particularly among younger generations, who are drinking less alcohol overall.

What’s Next for the Wine Industry?

The global wine industry is at a crossroads. With production challenges, changing consumer habits, and economic pressures, winemakers face an uncertain future. Will the industry adapt by targeting younger audiences with innovative products or marketing? Or will these trends signal a permanent shift in how we view wine? One thing is clear: the days of wine as a cultural staple may be evolving, and the industry must navigate these changes to stay relevant.

This post captures the essence of a pivotal moment for wine lovers and producers alike, blending hard data with the cultural and economic forces shaping this historic decline.

Stay tuned for more insights into how global trends are reshaping the world of food and drink.