After years of growth, the global wine sales crisis is beginning to impact Austria’s wine exports. While revenue growth was still reported for 2023 (+7% to €248.2m), export volumes declined by 4.3% to 65.3m liters. The average export price reached a new record of €3.80 per liter. Bulk wine exports saw a sharp drop in volume, down 22.4%, while sparkling wines also experienced significant declines in export value: –14.9% for semi-sparkling wines and –25.7% for sparkling wines. It’s worth noting that export figures from Statistics Austria also include re-exports.
Despite this, the strong international and domestic interest in Austrian wine was highlighted by a record turnout at the 2024 VieVinum trade fair, which welcomed around 16,000 visitors from nearly 60 countries. Encouragingly, a survey conducted by Austrian Wine Marketing (ÖWM) in collaboration with the market research agency Marketmind revealed that 60% of international attendees plan to add at least three new Austrian wines to their portfolios. Among respondents, 82% from North America (USA and Canada) and 67% from Asia agreed with the statement, "Demand for Austrian wine is rising," compared to only 56% from Germany.
The domestic market remains stable
According to Austrian Wine Marketing (ÖWM), domestic wine consumption held steady in 2023. Restaurant sales accounted for 56% (slightly down), at-home consumption rose slightly to 39% (86.7% of which was purchased in supermarkets), and tourist purchases made up 5%. Ludwig Holzer observed a similar trend for his own business, though gastronomy plays a smaller role there. “Restaurant sales continue to decline at a low level,” says Holzer. Nevertheless, he considers the domestic market stable for Winzer Krems.
Lenz Moser has noticed similar trends. “The fact that younger generations are drinking less wine cannot be denied. However, this is often due to poor communication. Wine should be seen as both a pleasure product and part of Austria’s cultural heritage, not as a harmful substance,” says Helmut Amon.
Understanding consumer demands
Winzer Krems is currently experiencing a slight decline in sales volumes, according to Ludwig Holzer. However, the focus has been on maintaining price stability rather than boosting sales through discounts, leaving the company in a solid revenue position. “Considering the overall situation, we can actually be quite satisfied,” says Holzer. Austria, he notes, offers “the right product for the international market with its fruity white wines,” and even red wine exports from Winzer Krems are “still performing well.”
Adapting to market demands, the cooperative will soon launch its first alcohol-free Grüner Veltliner. “We can’t avoid this topic,” says Holzer. They are also expanding their vineyard area for PIWI grape varieties and plan to introduce two new PIWI wines shortly. “We’re still seeing good momentum with PIWIs,” he explains. While still a niche, the market seems to be embracing these wines.
Austrian wine commands the domestic market
Austrian wines dominated the domestic market in 2023, accounting for 83.1% of sales value and 89.9% of volume in the cash-and-carry wholesale sector, according to Nielsen Gastro Panel. While the market share of foreign wines has increased by 3% in value over the past decade, their volume share has declined by 1%. The average revenue per liter in Austria's gastronomy wholesale sector reached €5.52 in 2023, up €0.90 from 2013.
For at-home consumption, GfK buyer trends report 47.4m liters of Austrian wine sold in 2023, compared to 27.9m liters of foreign wine. Austrian wines held a 62% market share, slightly higher than in 2022 (61%) but significantly lower than in 2020 (71%). Austrian wines generated €289.3m in revenue, far outpacing foreign wines at €93.1m. Average revenues per liter were reported at €6.50 for direct-from-winery sales, €5.70 in supermarkets, and €10.90 in specialty wine shops.
In 2023, Austrian wines held a 77% revenue share and a 68.2% volume share in the domestic supermarket sector, according to ÖWM. White wine saw a 0.1% dip in volume but a 3.3% revenue increase, while red and rosé wines experienced slight volume declines (–2.5% and –2.0%, respectively) with modest value growth (+0.2% and +2.9%).
NielsenIQ analysis revealed growth in the €7.00–€9.99 (19.4% share, +0.5%) and €2.00–€2.99 (8.3% share, +0.7%) price categories, while the sub-€1.99 segment all but disappeared (0.3% share). The €4.00–€6.99 range remained dominant at 43.7% (–0.1%). White wine led in supermarket sales (63.7%, +0.8%), followed by red (32.3%, –0.8%) and rosé (3.9%, –0.1%).
Domestically, sparkling wine sales surged, with a 15.6% revenue increase over three years, contrasting its decline in exports.
Riding the organic wave
Austria also cemented its role as a pioneer in organic winemaking. As of mid-2024, about 10,500 ha of vineyards are certified organic—24% of the country’s total vineyard area. Additionally, 14% of vineyards are farmed biodynamically, and 25% carry the “Sustainable Austria” seal.
The small Carnuntum DAC stands out as a leader in organic viticulture. Of the region’s 830 ha, 504 ha are managed by the 34 Rubin Carnuntum wineries. With the 2024 vintage, 324 ha of these vineyards are certified organic, with another 16 ha in conversion.
“It all started with the large-scale geological study in 2006. (…) This work led to a focus on single-vineyard wines, the classification of vineyard sites, and the definition of Carnuntum DAC, which was finalized in 2019. From this deeper engagement with vineyard terroirs, the transition to organic farming was a natural and logical step,” states the Rubin Carnuntum association.
Other producers in the region have embraced organic practices as well, bringing the total organic vineyard area in Carnuntum to an estimated 40%.
Small, early harvest
Early predictions suggest that the 2024 harvest will yield between 1.9 and 2m hl, down from 2.33m hl in 2023 and an average of 2.41m hl from 2019 to 2023. What’s clear is that the harvest began earlier than usual, with some regions needing a ‘turbo autumn’ to catch up. “Our prior investments in the new winery facility paid off, allowing us to complete our rapid harvest in just 25 days,” says Ludwig Holzer.
This swift harvest was prompted by heavy rainfall in September, which caused flooding and damage in various regions of Austria. Despite this, the wine industry largely emerged unscathed, as noted by ÖWM at the time.
At Winzer Krems, just over 7m hl were harvested in 2024, the lowest yield in the past five years. In 2023, the harvest totaled more than 9m hl. Significant losses were especially noted for Grüner Veltliner, the region's most important grape variety, which accounted for 59% of the total harvest.
"We experienced significant losses in white wine, particularly with Muscat varieties, due to late frost and hail," says Elisabeth Wendelin from Winzerkeller Seewinkel about the 2024 harvest. At Domäne Baumgartner, frost damage led to a 30% loss, mostly affecting white wine varieties. "Grüner Veltliner is particularly sought after in Nordic countries, but unfortunately, there’s just not enough supply," says Katharina Baumgartner. In contrast, red wine is struggling to sell at almost any price.
"There’s clearly not enough white wine to meet demand, especially Veltliner," Wendelin adds. She explains that the 2024 white wine harvest is almost sold out. "As a result, prices have risen, with bulk white wine prices increasing by about 20 to 25%." Currently, Grüner Veltliner is priced at around €1.15 per liter in Austria, while red wine is priced between €0.75 and €0.80 per liter.
Consolidations on the rise
The bulk wine prices for white varieties should remain as high as they currently are to ensure profitability for producers, notes Elisabeth Wendelin. Like Ludwig Holzer, she anticipates that more grape growers in Austria will increasingly abandon their land. The trend of consolidation is already visible—according to ÖWM, the average vineyard size has grown from 1.28 ha in 1987 to 4.42 ha in 2024, while the number of wineries has decreased from 45,380 to 10,012 over the same period.
The effects of climate change are also becoming evident in Austrian viticulture. Producers must adapt to the changing conditions.
"To combat the high temperatures, we begin cooling already in the press house, and we ensure optimal vine care in the vineyard with weather-dependent canopy management and soil cultivation. With native grape varieties like Grüner Veltliner and Blauer Zweigelt, we have resilient varieties for the future," says Helmut Amon from Lenz Moser.
Ludwig Holzer observes, "The alcohol levels have surged due to late summer heat. We are already preparing for next year, focusing on how to keep alcohol levels low." Vincent Meßmer
