On 12 May 2026, the International Organization of Vine and Wine (OIV) published its annual State of the World Wine Sector report for the year 2025. Across production, consumption, and trade, the category remains under pressure. The report highlights and compares the state of the wine industry against 2024. The global vineyard surface area declined by 0.8% in 2025 to 7.0 million hectares (approx. 17.3 million acres), marking the sixth consecutive year of contraction.
In the European Union (EU), the vineyard area declined by 1.6% to 3.2 million hectares, accounting for 45% of the world’s total space. The decline is linked to subsidies for uprooting vineyards, primarily in France (740,000 hectares, -4.4%) and Spain (919,000 hectares, -1.3%), as the industry adjusts to market needs. After some growth in 2024, Italy also noted a slight contraction of 0.3%, bringing its total vineyard surface to 726,000 hectares. Germany recorded a small decline to 102,000 hectares, a decrease of 1.3%.
In contrast, Russia has recorded "sustained growth," having strongly promoted the development of its wine sector over the past decade. In Asia, following a period of expansion, China has now stabilized its vineyard sizes and has become the third-largest holder, estimated at 733,000 hectares. Interestingly, India’s vineyard area has been expanding with a growth rate of 4.6% to 197,000 hectares—roughly twice the size of Germany’s total area.
In North America, the United States ranks as the fifth-largest vineyard holder with 415,000 hectares. This represents a decline of 0.9% compared to 2024, marking the seventh consecutive year of contraction, which is largely driven by the ongoing uprooting of grapevines in California. Meanwhile, Australia was able to maintain its vineyard area, which remains broadly stable at 159,000 hectares.
Production volumes near historic lows
In 2025, global wine production, excluding juices and musts, is estimated at 227 million hectoliters, marking an increase of 0.6% compared to the historical low output of 2024. The 2025 figure represents the third consecutive year that production has remained 9.4% below the five-year average.
The European Union’s production is estimated at 136 million hectoliters, a small decrease of 1.3%. Despite recording one of its lowest volumes on record, the region remains dominant, accounting for approximately 60% of world wine production. The reduced output stems from weather-related disruptions; while some areas performed well, others experienced severe drought, hydric stress, and heat episodes that damaged vineyards.
Italy, currently the largest wine-producing nation globally, was one of the few countries to record an increase, reaching 44.4 million hectoliters (+0.7%). Nevertheless, the current volume remains 4.1% lower than its five-year average. The majority of growth was driven primarily by southern regions, while the north recorded a slight decline.
France, the world’s second-largest wine producer, yielded 36.1 million hectoliters, marking a significant 16% drop below its five-year average. Despite ongoing grubbing efforts, the low production volume is primarily linked to poor weather conditions across the country—from flowering to harvest—which impacted all wine regions and was followed by heatwaves in August.
Spain maintains its position as the third-largest producer with 28.7 million hectoliters. The total reflects a decrease of 2.4 million hectoliters (-7.7%) compared to 2024 and remains 17% below the five-year average. For the third consecutive year, drought and heatwaves led to a marked contraction in yields, resulting in one of the lowest harvest levels in recent decades.
Germany also recorded a smaller production volume of 7.6 million hectoliters, a 2.6% decline compared to 2024 and well below its average. The decline was largely linked to hot and dry conditions during the growing season, which constrained potential yields, followed by heavy rainfall during the harvest period that further reduced volumes.
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