Top 10 wine trends for 2014

3. Greater balance in supply and demand will be matched by a shift in global consumption

china wine worker While doom laden headlines predicting a “global wine shortage” are rather off the mark, many big players are predicting that global supply and demand will continue to gravitate towards a better equilibrium, at least in the short term. “Wine consumption is increasing and it has been outpacing production for more than six years, with global inventories now 7.5 million litres below the highs reached in 2006, a drop of approximately 40%,” says Neil McGuigan, chief executive officer of Australian Vintage.

“Globally the industry – in terms of supply and demand – is moving toward balance, oversupply is decreasing, with global output falling from 26m litres in 2011 to 24.8m litres in 2012, with the 2012 vintage being the smallest since 1975,” continues McGuigan.

While it is predicted that consumption will continue to dip in mature European markets, the slow but steady growth in a host of populous countries, including the US and emerging territories such as China, will further ease the global glut and bulk wine prices will continue to rise.

Further ahead, plantings coming on line in the Southern Hemisphere and China’s own fast expanding production will be likely to meet and exceed the projected growth in global demand.

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