EU-27 Annual Wine Report 2009; Consumption to Fall Due to Economic Downturn

The EU remains the world's largest wine producer, consumer, exporter and importer. Total EU-27 wine production in 2008/09 dropped one percent due to adverse weather, mainly in France and Spain. The drop in production in France and Spain was not completely offset by increases in production in other countries.

Wine consumption is expected to decline in 2009 primarily to the general economic crisis.  EU exports in 2008 declined 5 percent in volume, but grew 11 percent in value.  Total EU imports decreased 4 percent in 2008, while shipments from the U.S. remain fairly stable and are increasingly represented by bulk wine bottled locally for distribution within the EU. The final implementation of the new EU reform of the wine sector is expected in August 2009.

PRODUCTION

The European Union continues to be the world leader in terms of vine growing area (almost half of the total) and wine production volume (about two thirds of the overall world crop, on average).  Within the EU, the production of France, Italy and Spain represents, on average, 75 to 80 percent of the total.  Other important producers include Germany, Portugal, Romania, Greece and Hungary, but the wine sector also has a considerable role in other countries, such as Austria, Bulgaria and Slovenia.  There is also production in the Czech Republic, Slovakia, Cyprus and Luxembourg, however it is minor when compared to the overall production.