EU releases measures to support ‘struggling wine industry’

The European Union has announced a new strategy to help its wine sector, which is struggling with falling demand, rising costs, and climate-related challenges. By introducing targeted policies, the EU aims to stabilise the industry and protect its global standing. 

The state of the EU wine industry The EU accounts for 60% of the world’s wine production, with Italy, France, and Spain as the top producers. The industry provides jobs for 1.4% of the EU’s workforce and contributes 0.8% to its GDP, a level similar to the steel industry. However, many wine producers now face difficulties due to higher costs and changing consumer preferences. Key measures introduced by the European Commission To tackle these challenges, the European Commission has proposed several solutions:

• Emergency Distillation: The EU will fund the distillation of surplus wine to prevent oversupply and keep prices stable. This action will help winemakers who are struggling to sell their stock.
• Green Harvesting: Winegrowers who voluntarily reduce their grape yields will receive financial support. This policy aims to align production with lower demand, preventing further price drops.
• Marketing Support: The EU will increase funding to promote European wines in non-EU markets. By doing so, it hopes to boost exports and improve global competitiveness.
• Reducing Red Tape: The Commission plans to simplify administrative procedures in the wine industry. Fewer regulations will allow producers to focus more on making and selling wine rather than dealing with paperwork.
• Sustainability Initiatives: The EU will encourage winemakers to adopt environmentally friendly farming methods. This support includes promoting sustainable viticulture that ensures the long-term health of vineyards.

The bigger picture: challenges in the wine industry The wine sector is facing several major challenges that go beyond the EU. Climate change, shifting consumer preferences, and economic pressures all contribute to a difficult environment for producers.

Climate change and production decline

Extreme weather conditions, worsened by climate change, have caused global wine production to drop to historic lows. In 2024, global output was expected to reach 231 million hectolitres, which is 2% less than in 2023 and 13% below the ten-year average. This marks the lowest production level since 1961. European vineyards, in particular, have suffered from extreme weather, including early frosts, droughts, and hailstorms. France saw a 23% decline in production, falling to 36.9 million hectolitres due to prolonged rain, vineyard diseases, and severe storms.

Changing consumer preferences

Consumer trends are also evolving, with more people seeking lower-alcohol and organic wines. The EU has responded by changing its rules on organic winemaking.

EU approves dealcoholised organic wine

To keep up with market trends, the EU now allows organic winemakers to produce dealcoholised wine without losing their organic certification. Previously, removing alcohol meant that the wine lost its organic status. The new regulations permit winemakers to use vacuum distillation at temperatures below 75°C, ensuring that the product remains within organic standards. This decision is expected to help organic winemakers enter the growing no- and low-alcohol market, which has gained popularity in recent years. By implementing these measures, the EU hopes to secure the future of its wine industry. With a focus on sustainability, economic stability, and global competitiveness, these policies aim to ensure that European wine remains a key player in the international market.