Wine production is facing considerable reduction. The global wine production hit a historic low in 2017 which means the prices for your favorite cheap wine could rise.Wine production fell due to poor weather conditions in the Europe according to the International Organisation of Vine and Wine.
The world produced about 33,000 bottles of wine last year. This marked an 8.6% decline from 2016 the Paris-based organization said in a press release Tuesday. This is the lowest level of production since 1957, when production fell to 173.8 million hectoliters.
The decline in production results the prices of cheap wines could go up, according to Stephen Rannekleiv, a global beverages strategist at Rabobank.
“It was a considerable decline in production in 2017,” said Stephen Rannekleiv. “The drop in production really affects the lower end of the market, the generic wine.”
Rannekleiv said the decline will hit the European market particularly hard, especially in major wine-consuming countries like France, Italy and Spain.
Meanwhile, global wine consumption has risen to about 243 million hectoliters, up 1.8 percent from 2016, with China and the U.S seeing some of the biggest growth.
Americans drank 32.6 million hectoliters of wine. Early estimates for 2018 suggest production levels in Argentina, Chile, New Zealand and Uruguay are on the rise, but wine production in South Africa, Australia and Brazil are all expected to decline.