Winter has arrived and the epidemic threatens to become even more difficult to control. The wine industry has felt the crisis caused by the epidemic since the hotel industry closed, and it is still uncertain when this crisis will turn around.
Image courtesy of: Penin Guide Spain
The conclusion that can be drawn from some of the data provided by the International Organization of Vine and Wine (OIV) is that the coronavirus pandemic has already had a serious impact on the international wine market. In the first six months of the year, Spanish wine exports fell by 11% in volume and 7% in wine value. The situation is worse in France, which not only lost 10 percent of its market share, but also saw a drop in wine value of up to 21 percent. The International Organization of Vine and Wine recently showed its forecast for world wine production next year, with the possibility of a second consecutive year of production below the average of the past five years. It is estimated that 25.8 billion liters of wine will be produced globally, down 1% from last year.
Lower wine production isn"t all bad news, says OIV President Pau Roca. Faced with the turmoil and uncertainty that the coronavirus pandemic is causing in the market, the European Union and other regions have taken steps to limit wine harvests. According to OIV analysis, EU member states will produce 15.9 billion liters of wine this year, with Italy producing the most, but with a 1% drop in production compared to last year, totaling 4.72 billion liters; France will produce 4.39 billion liters, up 4% compared to last year; and Spain will produce 3.75 billion liters, up 11% ...... However, considering the overall situation, the expected production remains below the average level of the past five years.
Among other countries in the Northern Hemisphere, Russia expects wine production to increase by 2% this year, while in Switzerland they forecast a 10% drop in production. For the United States, 2.47 billion liters of wine are expected to be produced, up 1% compared to last year, although this figure is subject to further consideration in light of the actual conditions of the epidemic in the country. In the Southern Hemisphere, production is expected to be 4.9 billion liters, down 8% from last year, due to unfavorable weather conditions. The countries with the largest decreases are Argentina (-17%), Chile (-13%) and South Africa (-11%).
The decline in wine production has coincided with a period of poor performance in international markets, with the major European wine producers experiencing a drop in exports and wine values in the face of both U.S. tariffs and the epidemic. according to Pau Roca, the coronavirus pandemic has left us with a lot to think about, and restoring international markets and betting on digital development should be an effective way out of the crisis for now.