Bulk market slows

The bulk market slowness in April and early May was reminiscent of 2023, a very slow year before the cumulative effect of two years of shorter crops helped give the market more of its normal ebbs and flows in 2024. What of the Southern Hemisphere’s 2025 crops? Chile’s crush is estimated to be 25% down from the average, but Argentina and South Africa’s harvests appear to have come in average in size. New Zealand’s crop was restricted by dropping fruit in response to accumulating wine inventory; Australia’s harvest size is currently unclear. 
 

Vineyard area falling

The Organisation of Vine & Wine (OIV), in its recently-published 2024 industry report, estimated global production in 2024 at 225.8 million hectolitres, 4.8% down versus 2023 and the lowest level since 1961. This is due to climactic conditions but also market adjustments, as vineyards are mothballed or removed in response to low wine-grape demand. Global vineyard area has seen a gradual decline, from 7.37 million hectares in 2019 to 7.09 million in 2024. While this should help better balance supply with demand, smaller harvests tend to lead to higher grape prices and – in turn – wine prices, exacerbating wine’s struggling competitiveness in the retail aisle.
 

Losing shelf space

Elevated input costs have made it harder for wine to compete against alternative beverages able to charge a lower price per unit of alcohol. According to the OIV, only Spain and South Africa of the major wine-consuming nations have seen consumption increases – at times – in the past three years. This is likely partly thanks to the robust price-competitiveness of wine in those two markets.
 

Attractive buying opportunities

From a bulk wine buyer’s perspective, opportunities exist on a range of high-quality wines currently selling at lower prices, such as: southern French IPG varietals, Provencal rosés, Argentinian Malbec, Coastal Californian wines, and Marlborough Sauvignon Blanc. Around the world, generic wine inventory is being supplemented with declassified varietal wines in an attempt to move them on – a reflection of where buyer price expectations are currently perceived to be. While entry-level pricing can be unsustainable for the supplier in the longer term, it does mean that – overall – the price-quality ratio of the global bulk wine offer is currently very advantageous to the buyer and, in turn, consumer.