Low demand and full cellars are driving down red wine prices in major European wine-producing countries. In Spain, experts note that nearly all current red wine prices are negotiable. Even traditionally stable prices for prestigious Piedmont wines like Barolo are beginning to drop. While the outlook for the harvest in Italy is somewhat mixed, Spain is still expecting an average crop of around 40m hl - 20% up from last year. As a result, the new vintage in Spain is likely to start with lower white wine prices, which could see a moderate increase in the medium term if Italy resumes large-scale purchases of Spanish bulk white. Spain may also benefit from increased demand from France which is expecting a smaller harvest.
However, certain varieties in Spain, including Moscatel, Monastrell, Bobal, and base wines for Cava, are expected to remain scarce. Improvement in supply for these is not anticipated until 2026, when two large seawater desalination plants are due to go into operation, facilitating irrigation.
Sources: Ciatti Global Wine & Grape Brokers, internal surveys, chambers of commerce, FranceAgriMer, Med.&A., and Osservatorio del Vino.
