The Evolving Global Wine Market

Fifty years ago, a few countries in Western Europe accounted for virtually all world exports of wine and most of its production and consumption. This has changed dramatically: now every continent has major producing and/or consuming countries. Much of this change has been driven by technology and science, resulting in increasing quality, bringing new countries into the ranks of global winemakers, and increasing the productivity of traditional countries. Much of it has also been driven by economics, in particular the rising income and changing tastes of consumers throughout the world, and by public policy that has created surpluses in Europe. This paper shows the magnitudes of the shifts in consumption and production and discusses the economic and social factors that drive them.