Grape wine market in Southern Europe

Earlier Report Observations

Grape wine production in Southern Europe declined from 12 316 million liters in 2018 to 11 583 million liters in 2021. This trend was partly due to vineyard restructuring measures aimed at improving quality, which temporarily reduced yields. The COVID-19 pandemic in 2020 led to crisis distillation and private storage interventions to support the market, while Law 2/2020 strengthened protected designations of origin, enhancing regulatory oversight.

Production rebounded sharply to 14 578 million liters in 2022, coinciding with the implementation of Royal Decree 905/2022 that established sectoral intervention measures, including crisis distillation and market withdrawal. The following year, output dropped by 23% to 11 170 million liters after authorities authorized green harvesting for the 2022/2023 campaign with a €15 million budget to counter market imbalances from rising costs, falling consumption, and export difficulties.

Production grape wine in Southern Europe

In kind, 2017-2020, M l

Top producers of grape wine, 2017-2020

World map of production of grape wine, 2017-2020

Southern Europe's grape wine production declined for the second consecutive year. In 2020, production reached 11 501 million liters, marking a slight contraction of 2.4% compared to 2019. The largest decline occurred in 2019, with a drop of 4.3%, while the highest production level was recorded in 2018 at 12 316 million liters, which represented a 6.2% increase from the previous year.

Annual dynamics of production in Southern Europe in kind, 2017-2020, M l

In value, 2017-2020, M $ US

In 2020, the output value of grape wine in Southern Europe was $31 799 million, showing a small year-on-year increase of 0.9%. Over the period from 2017 to 2020, production value grew by 12.4%, with a compound annual growth rate of 4.0%. The peak value was recorded in 2018 at $36 017 million, reflecting a substantial 27.3% increase. However, the largest decline occurred in 2019, with a decrease of 12.5%.

Annual dynamics of production in Southern Europe in value, 2017-2020, M $ US

Exports grape wine from Southern Europe

Exports in kind, M l

In 2020, Southern Europe exported 4 146 million liters of grape wine, representing a small decrease of 2.7% compared to 2019. Over the 2017-2020 period, exports declined by 9.3%, with a compound annual growth rate of -3.2%. The largest decline was recorded in 2018 at 9.2%, while the only increase occurred in 2019 with a growth of 2.8%.

Annual dynamics of product's exports from Southern Europe in kind, 2017-2020, M l

From 2017 to 2020, Germany, France, and the United Kingdom were key buyers of grape wine from Southern Europe, accounting for 20.6%, 13.7%, and 9.7% of exports in kind respectively. However, their combined share reached only 44.1% of total exports, with the remaining 55.9% distributed among numerous other trading partners.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Europe in kind, 2017-2020

Exports in value, M $ US

In 2020, Southern Europe's grape wine exports amounted to $11 464 million, showing no significant change compared to the previous year. Over the 2017-2020 period, exports increased by 2.9%, with a compound annual growth rate of 1.0%. The highest value was recorded in 2018 at $12 129 million, representing an 8.8% increase. The largest decline occurred in 2019 with a decrease of 6.0%.

Annual dynamics of product's exports from Southern Europe in value, 2017-2020, M $ US

The country composition of exports in value terms from 2017 to 2020 was highly dispersed. The United States, Germany, and the United Kingdom accounted for 18.4%, 14.8%, and 11.6% of exports respectively, but together they formed just 44.9% of total flows. The remaining 55.1% was split among a wide range of other destinations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Europe in value, 2017-2020

Imports grape wine to Southern Europe

Imports in kind, M l

In 2020, foreign grape wine supplies to Southern Europe stood at 304 million liters, marking a sharp increase of 64.2% from 2019. Over the 2017-2020 period, imports grew by 17.2%, with a compound annual growth rate of 5.4%. The lowest level was recorded in 2019 at 185 million liters, representing a 43.6% decline, while the peak was in 2018 at 328 million liters.

Annual dynamics of product's imports to Southern Europe in kind, 2017-2020, M l

The market base for imports in kind from 2017 to 2020 was broad, with France, Argentina, and Germany accounting for 5.6%, 3.1%, and 1.7% of imports respectively. Together, they represented just 10.3% of total flows, while the remaining 89.7% was shared by numerous other countries.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Europe in kind, 2017-2020

Imports in value, M $ US

Cross-border shipments of grape wine to Southern Europe declined for the second consecutive year. In 2020, imports totaled $889 million, representing a significant decline of 12.5% from 2019. Over the 2017-2020 period, imports decreased by 3.4%, with a compound annual growth rate of -1.1%. The highest value was recorded in 2018 at $1 078 million, reflecting a 17.2% increase from the previous year.

Annual dynamics of product's imports to Southern Europe in value, 2017-2020, M $ US

From 2017 to 2020, imports in value terms of grape wine to Southern Europe were spread across many countries. France, Germany, and the United Kingdom accounted for 40.7%, 2.8%, and 1.9% of imports respectively, but together they represented only 45.4% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Europe in value, 2017-2020