Journal of Wine Economics· 2026Q1
Why the current global wine industry crisis?
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- Q1SCImago
- 2026year
Short summary
The current global wine crisis is structural, not cyclical, characterized by depressed prices and a surplus of non-premium wine across all major producing countries.
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Key points
- The current wine crisis is structural, affecting all major producing countries simultaneously.
- A large surplus of non-premium wine, especially red, is driving down prices.
- Non-premium wine producers face more severe pressures for structural adjustment than fine wine producers.
- Resolving the crisis requires disposing of the surplus and removing unprofitable vines.
AI-generated from the title and abstract; the full text is not read.
Abstract
Abstract Occasional boom-bust cycles have long characterized national wine industries, but without them coinciding with the cycles of other countries. Today's wine crisis is different in that prices for all but high-quality wines are depressed in all major wine-producing countries, and the world is awash with a large surplus of (especially red) non-premium wine. This article first outlines the nature and extent of the crisis. It explores its various causes, arguing that they are structural rather than just cyclical. It then suggests what is required for profits to return to normal. To simplify the analysis, use is made throughout of a two-part industry framework that involves non-premium and fine wine producers. Both parts are struggling, but the pressures for structural adjustment are far more severe for non-premium vignerons. The study concludes that the longer it takes for the surplus to be disposed of and for a non-trivial share of the world's least-profitable vines to be removed, the longer will prices be depressed not only for non-premium wine but also for some higher-quality wines.
The authors' abstract, as published at the source. Journal of Wine Economics, 2026 · DOI ↗
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