Global wine production and consumption both declined again in 2025 as the sector continued to battle tariff disruption, climate volatility and changing drinking habits, according to new figures from the International Organisation of Vine and Wine (OIV).

The intergovernmental body’s latest State of the World Wine Sector report painted a picture of an industry still under pressure from weaker demand and geopolitical uncertainty, despite what it described as continuing resilience across global markets.

Global wine production reached an estimated 227mhl in 2025, up just 0.6% on the historically low 2024 vintage, though this figure still sits well below long-term averages. The OIV said climate instability remained a major factor across both hemispheres, while some producers also intentionally reduced output in response to softer market conditions.

At the same time, worldwide wine consumption fell 2.7% year-on-year to 208mhl as inflation and evolving consumer behaviour continued to weigh on mature markets.

OIV director general John Barker said: “Over the past few years, the wine sector has been adapting to ongoing climatic, economic and societal challenges. In 2025, the disruption to international trade through tariff policies was yet another external impact that producers, exporters and supply chain must manage.”

The report highlighted pockets of growth in places such as Portugal, Brazil, Japan and parts of Eastern and Central Europe. However, international trade also contracted during the year. Global wine exports declined 4.7% to 94.mhl, while export value dropped 6.7% to €33.8bn. According to the OIV, weaker global demand and uncertainty linked to tariff policies and wider trade tensions were among the biggest contributing factors.

The US was singled out as one of the markets most affected by those pressures, with wine imports into the country falling 12% year-on-year to €5.5bn.

Despite the downturn, the OIV noted that international trade remains structurally strong compared with pre-pandemic levels, with almost half of all wine produced globally continuing to cross borders.

“Overall, the sector is showing its resilience, both looking for new market opportunities and adjusting production capacity in line with demand. Trade and product value remain strong and recent bilateral or multilateral trade agreements will help to create positive conditions for evolving markets,” Barker said.