Wine industries face crises from COVID-19, trade wars, and changing consumer tastes globally.
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The Rioja Designation of Origin (DO) experienced significant growth from 1985 to 2020, increasing its wineries, vineyard area, and barrel capacity substantially. However, the COVID-19 pandemic caused a downturn with falling red wine consumption and exports, followed by new threats from potential high tariffs under Donald Trump’s administration, which could severely impact US exports worth around 70 million euros. Concerns are also noted in other regions like Galicia and Bordeaux, where overproduction is leading to vineyard reductions. Overall, the global red wine market faces a serious crisis due to declining consumption among younger generations who prefer white wines or lower-alcohol beverages. While Rioja saw a slight sales increase in 2024, facing challenges from climate change and reduced consumer preference for reds, other major producers like Bordeaux are actively seeking aid to prune vineyards. Italy appears to be managing the difficulties better than its competitors, maintaining its position as a top exporter despite domestic market stagnation. Furthermore, Rioja has been involved in an international fraud operation involving counterfeit wines sold in Southeast Asia.
