In this article, we are going to discuss the top 20 wine producing countries in the world. You can skip our detailed analysis of the global wine market, the trends of global wine production, and some prominent wine stocks, and go directly to Top 5 Wine Producing Countries in the World.
In classical Greek culture, wine was the staple around which philosophy, art, poetry, religion, music, and political life revolved. In fact, the Greeks weren’t the only ones who associated ‘the drink of the gods’ with knowledge, it has always been an important symbol in Christian tradition as well. Wine is a constant in Christianity – it is said to be a gift of God to humanity, it’s in the Last Supper, symbolizes Christ’s blood, and is used in modern rituals.
Global Wine Market:
As we mentioned in our article – Top 20 Wine Drinking Countries in the World – the global wine market size was valued at $441.6 billion in 2022 and is projected to reach a value of $698.54 billion by 2020, with a CAGR of 5.9% over the forecast period.
Wine is gaining huge popularity among millennials and youngsters, owing to its refreshing appeal and low ABV offerings. Moreover, drinking wine is now more likely associated with a wealthy and lavish lifestyle of the consumers, thereby promoting market growth. Consumers in the major developed economies are curious and looking to buy a variety of quality products in the market.
Trends of Global Wine Production:
The global wine production in 2022, excluding juices and musts, was estimated at 258 million hectoliters, marking a decrease of almost 3 mhl compared to 2021. This is due to the higher-than-expected harvest volume in Europe and the U.S., (despite the drought and heat waves during spring and summer) and average production level recorded in the Southern Hemisphere.
Overall in 2022, the dry and hot conditions observed across different regions of the world have led to early harvests and average volumes. The global wine production is stable around 260 million hectoliters for the fourth consecutive year, only slightly below its 20-year average.
Wine Stocks:
Constellation Brands, Inc. (NYSE:STZ) is a leading international producer and marketer of beer, wine, and spirits, with operations in the U.S., Mexico, New Zealand, Canada, and Italy. The company offers wines under the 7 Moons, Cook’s California Champagne, Cooper & Thief, Crafters Union, Kim Crawford, Mount Veeder, Ruffino, SIMI, The Dreaming Tree, Charles Smith, The Prisoner Wine Company, Robert Mondavi, My Favorite Neighbor, and Schrader brands.
In June, Constellation Brands, Inc. (NYSE:STZ) finalized the acquisition of Domaine Curry – a luxury Napa Valley wine brand – for an undisclosed amount.
The company made headlines this summer when its Mexican beer brand, Modelo Especial, became the Top-Selling Beer in America after dethroning Bud Light. Constellation Brands, Inc. (NYSE:STZ) will be looking to display strength as it nears its next earnings release. In the upcoming quarterly report, analysts expect the group to post earnings of $3.34 per share, marking a YoY growth of 5.36%. The company’s stock price has boasted YTD gains of 15.14%.
Brown-Forman Corporation (NYSE:BF-B) is a Kentucky-based company that manufactures, distills, markets, and sells spirits, wines, whiskey spirits, ready-to-drink and ready-to-pour products, vodkas, tequilas, champagnes, brandy, and bourbons. Brown-Forman Corporation (NYSE:BF-B) reported revenue of $1.05 billion in the last quarter, beating expectations by 5.57%. The company also reported EPS of $0.43 – 0.45% more than expected. Brown-Forman Corporation (NYSE:BF-B) stock price also registered a YTD increase of 6.62%. The stock is currently held by 41 hedge funds in the Insider Monkey database, with Fundsmith LLP holding the most at 12.195 million shares.
Anheuser-Busch InBev SA/NV (NYSE:BUD) is a Belgian beverage company that produces, distributes, and sells beer, wine and other alcoholic beverages, and soft drinks worldwide. The company had a revenue of $57.7 billion in 2022 and a net income of almost $6 billion. Anheuser-Busch InBev SA/NV (NYSE:BUD) shares haven’t gone anywhere in recent years, and it lost around 40% of its value over the last 5 years. It is a highly levered company and the rising interest rates aren’t helping the stock either. Nevertheless, billionaire Bill Gates’ portfolio managers decided to initiate a $96 million position in the firm during the second quarter.
Broyhill Asset Management said the following about Anheuser-Busch InBev SA/NV (NYSE:BUD) in its second quarter 2023 investor letter:
“The largest detractors to performance over the quarter were First Horizon Corp (FHN), Anheuser-Busch InBev SA/NV (NYSE:BUD), and Bayer (BAYRY). Problems at Anheuser Busch InBev began on April 1 with Dylan Mulvaney’s social media post, which ignited a fiery backlash amongst Bud Light customers across ‘Merica. With volumes down sharply, and competitors gaining share at BUD’s expense, operational deleveraging is set to weigh heavily on US margins amid peak demand pressure in the second quarter. Despite severe US headwinds (second-quarter operating profit maybe half of last year’s levels), we still expect BUD to grow consolidated operating profit at a mid-single-digit rate for the full year. With current issues well understood and investor sentiment in the gutters, we see significant upside in a stock, which is approaching a double-digit FCF yield. With FX headwinds and rising input costs reversing course, increasing margins are likely to drive positive surprises into FY24 as continued deleveraging accrues more value to shareholders.”
With that said, here are the Countries that Produce the Most Wine in the World.
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Methodology:
To collect data for this article, we have referred to the State of the World Vine and Wine Sector in 2022 report by the International Organization of Vine and Wine, looking for the Biggest Wine Producing Countries in the World. The total wine production of every country has been measured in million hectoliters (mhl). When two countries produced the same quantity of wine in 2022, we ranked them by their production in 2021.
If you wish to read about wine production in America, here are the U.S. States that Produce the Most Wine.
20. Moldova
Total Wine Production in 2022: 1.4 mhl
Moldova has over 100,000 hectares of vines, which actually means that it has a bigger proportion of its land covered in vineyards than any other country. Wine manufacturing also accounts for 15.2% of the country’s total food and beverage industry and for an estimated 6.1% of the total value of industrial production.
19. Georgia
Total Wine Production in 2022: 2.1 mhl
Georgia has a long and rich history of producing quality wines. With around 48,000 hectares of vineyards under cultivation, the Caucasian country exports wine worldwide, with sales growing rapidly, particularly in the U.S.
Georgia sits among the Top 20 Alcohol Drinking Countries in the World.
18. Greece
Total Wine Production in 2022: 2.1 mhl
Greece is in one of the oldest wine-producing regions in the world and is among the first wine-producing territories in Europe. The country is renowned for its crisp and mineral Assyrtiko wines from Santorini, rich and robust Agiorgitiko wines from Nemea, and complex Xinomavro wines from Naoussa.
17. Austria
Total Wine Production in 2022: 2.3 mhl
Austria is responsible for almost 1% of the global wine production, 30% of which is exported. The wine growing area in the country totals 113,000 acres and is managed by 23,000 wine growers. Austrian wine is some of the most quality focused in Europe. Austria ranks among Countries with Highest Rates of Alcoholism.
16. Hungary
Total Wine Production in 2022: 2.9 mhl
Hungary is a major wine producer in the world, with a total of 22 wine regions and 63,000 hectares (156,000 acres) of planted vines. The country exports 37% of its total wine production, the majority of which is red.
Hungary is among the Top Vodka Drinking Countries in the World.
15. Brazil
Total Wine Production in 2022: 3.2 mhl
Most of the wine production in Brazil is located in the southern part of the country, in the state of Rio Grande do Sul. Sparkling wine is Brazil’s shining star, but the South American country actually produces more still wines with an almost even split between red and white.
14. New Zealand
Total Wine Production in 2022: 3.8 mhl
The three biggest wine producing regions in New Zealand are Marlborough, Hawke’s Bay, and Gisborne, with the first way out ahead of the rest in terms of the volume of wine produced. Owned by Pernod Ricard since 2005, Brancott Estate is a major winemaker in the country.
13. Romania
Total Wine Production in 2022: 3.9 mhl
Romina produces a variety of wines, including both red and white, with both indigenous and international grape varieties. With just under 180,000 hectares of land planted to vines, Romania is the sixth-largest wine producing country in Europe.
12. China
Total Wine Production in 2022: 4.2 mhl
The domestic wine production has expanded immensely in China and the country has the second-largest vineyard area in the world. Despite its large domestic production, China imported 3.4 mhl of wine in 2022, worth around $1.49 billion.
11. Russia
Total Wine Production in 2022: 4.7 mhl
Russia produces wine of several different styles, including still, sparkling, and dessert wine. There are currently around 100 different varieties of grapes used to produce wine in the country. Among the favorite wines of Russian people, we find most often Chablis, Sancerre, and Bordeaux.
10. Portugal
Total Wine Production in 2022: 6.8 mhl
The vast quantity of native grape varieties in Portugal (more than 250) allows the production of a great diversity of wines with very distinct personalities. The country also exported a little over $1 billion of the beverage last year. The Douro Valley is one of the best wine regions in the world.
With a long tradition of winemaking, Portugal ranks among the Top 10 Wine Producing Countries in the World.
9. Germany
Total Wine Production in 2022: 8.9 mhl
The German wine industry is most famous for its world-class Riesling, produced along the river Rhein and its tributary the Mosel. The cool climate in the country is ideal for white wine varieties with intense minerality, thanks to the wide range of different soil types throughout Germany.
Germany ranks among Countries that Drink the Most Beer per Capita.
8. South Africa
Total Wine Production in 2022: 10.2 mhl
Almost half of all wine produced in South Africa is exported, with Europe being the most important market. In 2022, 542 wineries harvested just over 1.4 million tonnes of grapes to produce 10.2 million hectoliters of wine. More than 300,000 people are employed in the country’s winemaking industry.
7. Argentina
Total Wine Production in 2022: 11.5 mhl
As one of the largest wine producers in the world, Argentina has a rich wine culture and significant wine consumption domestically. Grape cultivation covers around 218,232 hectares in the country, with a marked predominance of red wine production at 52.9%.
Argentia produces some of the best wines in the world.
6. Chile
Total Wine Production in 2022: 12.4 mhl
Chile is the top wine producing country in South America. The grape cultivation area in Chile covers about 130,086 hectares but this is trending downward, primarily due to a reduction in the area planted from the O’Higgins region. The country also exported around 1.2 billion bottles of wine, with a revenue equivalent to $2 billion.
Chile is responsible for about 4.8% of the global wine production and ranks 6th among the Leading Wine Producing Countries in the World.
Click to continue reading and see the Top 5 Wine Producing Countries in the World.
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Disclosure: None. Top 20 Wine Producing Countries in the World is originally published on Insider Monkey.