Not Enough Wine to Go Around?

Wine consumptionMorgan Stanley Research is warning us now that wine supplies might be running short. Not only in France, but across the globe. The shortages that we may be experiencing now are only going to get worse. According to their reports, wine production in 2013 barely met the upward spiraling demand. As currant vintages are sent to market, there might not be enough wine to go around. Whether you invest in fine wine to make a healthy profit or only buy wine to drink and share, take these two points into consideration.

Traditional and Emerging Markets Love Wine

Americans are leaving their six-packs in the trunk and drinking wine in increasingly large quantities. Since the turn of the century, the per capital consumption in the US has doubled. As it stands Americans are guzzling 12pc of the world’s wine supply. But that’s not all! The Chinese are following America’s trend and not far behind. In the past five years, China has doubled its consumption of wine twice and has now become the fifth most important import market in the world. Just the Chinese and American market alone are expected to finish off more than 400 million cases of vintage by the year 2016. Wow.

Maintaining Wine Production

In 2000, there was plenty of wine to go around. In fact, there was too much. That is just not the case today. While the number of people drinking wine is increasing, the production of fine wine cannot keep up. According to one report, we reached peak wine production in 2004. Poor weather or the amount of area under vine can be blamed in some traditional wine growing areas.

Wine Production in 2013

About 60% of the wine in the world comes from Europe, so we can hope for good weather and suitable growing conditions amongst the best Bordeaux châteaux so they will continue to produce enough fine wine to satisfy the demands of the world.