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Ciatti Global Market Report, May 2025
Global wine consumption in 2024 is estimated by the Organisation of Vine & Wine (OIV) to have reached 214.2 million hectolitres, down 3.3% versus 2023 and the lowest level since 1961. In its recently-published 2024 industry report, the OIV attributed the decline in consumption – which has “followed a relatively steady trajectory since 2018” – to significantly reduced Chinese demand and the post-pandemic inflation surge which, although having cooled since 2023, still restricts consumer purchasing power to this day. Elevated input costs have made it harder for wine to compete against alternative beverages able to charge a lower price per unit of alcohol.
The OIV estimated global production in 2024 at 225.8 million hectolitres, 4.8% down versus 2023 and, again, the lowest level since 1961. This is attributable to climactic conditions but also market adjustments, as vineyards get mothballed or pulled out altogether in response to low winegrape demand. Global vineyard area has seen a gradual decline, from 7.37 million hectares in 2019 to 7.09 million in 2024. While this should help better balance supply with demand, smaller harvests tend to lead to higher grape prices and – in turn – wine prices, exacerbating wine’s struggling competitiveness in the alcohol aisle.
According to the OIV statistics, in the past three years only Spain and South Africa of the major wine-consuming nations have seen noteworthy consumption upticks, at least partly thanks to the robust price-competitiveness of wine in those markets. Growth towards historically high levels in South Africa was powered by entry-level bag-in-box wines, although volumes did unwind slightly (-2.8%) in 2024 as cost pressures on consumers rose. The recent rise in consumption there suggests growth potential – as yet largely untapped – in Africa more broadly.
April and early May were noticeably slow on the bulk market throughout the world, as the US import tariff announcements and resulting economic anxiety inhibited already-hesitant buying activity. The market lethargy was reminiscent of 2023, which felt like a very slow year before the cumulative impact of two years of shorter crops helped give the market more of its normal ebbs and flows in 2024. Australia has been receiving good enquiry levels following the completion of its 2025 harvest, but activity in Chile and Spain has recently been subdued, partly due to pricing levels as well as the slow-sales fundamental.
From a buyer’s perspective, opportunities persist on a range of high-quality wines selling at softened prices, including southern French IPG varietals, pale Provencal rosés, Argentinian Malbec, Coastal Californian wines, and New Zealand Sauvignon Blanc. Around the world, generic wine inventory is being supplemented with declassified varietal wines in an attempt to move them on – more a reflection of where buyer price expectations are currently perceived to be, rather than a consumer trend towards entry-level categories.
While making such a move can be unsustainable for the supplier longer term, it does mean that – overall – the price-quality of the global bulk wine offer is currently very advantageous to the buyer and, in turn, consumer. Don’t hesitate to reach out to the Ciatti team for the latest buying and selling opportunities; in the meantime, read on for updates from each market.
Ciatti California Report - May 2025
The very latest on bulk wine activity and inventory
Although continuing to be healthier than last year, activity levels on California’s bulk wine and grape markets have declined over the past four to eight weeks as the number of negative effects on buyer confidence continues to rise. First quarter case-good sales were softer than expected, retail numbers are still yet to stabilize, and the US administration’s tariff and foreign policies have hurt export sales.
With shelf space for Californian wines being rationalized at home and abroad, bulk inventory remains large and demand for it hesitant at best. Meanwhile, the grape market is slow enough to have led to what is likely the largest number of unpruned vineyards that we have seen. For the latest deep-dives into the bulk wine and grape markets – what is selling, and where – and updated inventory charts by volume and varietal, paying subscribers can read the full Ciatti California Report for May.
Our Vineyard Update is a longer one this month. Early growing conditions have been normal, and bud-break – where late in some places – has largely caught up following some warmer weather in recent weeks. But the real conversation is not around climatic conditions but grape market conditions, and what they mean for growers financially. The pull-back from grape buying that we have seen in recent weeks included many of those - few - buyers able to think strategically in terms of ensuring their future supply stays in the ground.
To read the latest Ciatti California Report in full, and get these benefits monthly -
- actionable bulk wine and grape market intelligence;
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How Bad Is Wine's Oversupply Problem?
Listen now: Ciatti's Glenn Proctor speaks to Liquid Assets
Glenn Proctor, partner at the Ciatti Company, was a guest on Rabobank’s latest Liquid Assets podcast, discussing the problem of wine oversupply with Jeff Bitter of Allied Grape Growers and podcast hosts Stephen Rannekleiv and Bourcard Nesin.
“I’ve been in the business since the late 80s, and it’s definitely the worst I’ve experienced in terms of the imbalance and where the industry feels,” said Proctor. “What we’ve experienced over the last three years is, with the declining sales, we are adjusting inventory around that to try to get back to a balanced situation.”
Proctor gave the latest figure in gallons for bulk inventory listed for sale with Ciatti, how it compares with previous years, where the inventory is located and at what pricing, and discusses the wine industry’s situation more broadly.
You can listen to all 49 minutes of the Liquid Assets episode absolutely free, with no sign-up required.
Ciatti Global Market Report, April 2025
The Southern Hemisphere harvests have wound down and their sizes seem variable: while Argentina’s and South Africa’s appear to have come in close to their downwardly-adjusted averages, Chile’s is estimated to be approximately 25% short; the crop sizes in Australia and New Zealand remain harder to quantify, with some grapes – mainly reds in the former, whites in the latter – unpicked to assist in balancing supply.
It is mid-spring in the Northern Hemisphere, meanwhile, and despite some inclement weather across Europe through March, the vineyards of France, Italy and Spain appear in good condition. March was also wet in much of California, which has now experienced three consecutive winters of average or above-average snowpack for the first time since 1998-2000. It likely that the grape market more than conditions will dictate the 2025 harvest size in California, judging by the number of vineyards across the state yet to be pruned.
The bulk markets of the world have largely been slow and steady, as buyers assess 2025 wine availability in the Southern Hemisphere and sample, and keep one eye on the frost risk in the Northern Hemisphere. Hesitancy also pervades the market, globally-speaking, given wine’s continuing sales struggles in key markets; first-quarter retail sales were disappointing for many. The prospect of tariff wars – and resulting economic turbulence – has been an additional drag on confidence since the turn of the year, and sure enough April brought a number of tariff and counter-tariff pronouncements that shocked world markets.
Turning down the tariff noise and dialling up the facts, the headline is: all wines from all major wine-producing countries now face a 10% import tariff on entering the US market, regardless of any pre-existing Free Trade Agreements. It is a level playing field of sorts, unless the higher tariffs initially threatened on EU and South African imports come into effect after their three-month suspension. There will doubtless be further alterations to this regime. For now, see this month’s Tariff Update for a summary of where things stand.
Amid the noise, business carries on. The projected harvest shortfall in Chile, coming on top of limited carryover, has stimulated a big upswing in buyer enquiries, sample requests, and transactions. In general, Chile’s pricing is higher than it was 12 months ago. Another area of – albeit less dramatic – activity is on southern French Vin de France wines, in reaction to high pricing on Spain’s entrylevel wines. All markets are united this month in observing a rise in enquiries into low and no-alcohol wines. As the France page reports: “These wines have certainly built up the most concerted buyer interest of any of the market innovations of recent times, such as orange wines, natural wines or light reds.”
Low/no-alcohol wines, plus the buying opportunities that currently exist on a host of bulk wines, can help programmes target the increasingly health and price-discerning consumer: Pricing on Argentina’s Malbec and generic white, and New Zealand’s Marlborough Sauvignon Blanc, continue to soften; volumes of southern French IGP wines are being offered at VDF pricing; South Africa has 2025 Cinsault rosé produced on speculation; California’s Coastal bulk wines have softened in price and now represent an eye-catching price-quality opportunity for mid-tier programmes. Don’t hesitate to reach out to the Ciatti team for the latest opportunities; in the meantime, read on for updates from each market.
Ciatti California Report - April 2025
Bulk market hesitantly active; grape demand slow
California’s bulk wine market was more active in the first quarter of this year than at any time in 2024, but has since slowed in the past four weeks or so, likely at least in part due to some softer-than-expected first quarter sales figures and also tariff uncertainty. Canada – the leading export market for US wine – has essentially been closed-off as a buyer since March, and the US administration’s early April announcements of the largest single imposition of tariffs in at least 70 years have led to economic jitters everywhere, the wine industry being no exception.
As this month’s Ciatti California Report states: “If nothing else, tariff developments are one more reason for a potential buyer to err on the side of sitting out the market for a little while longer.” The bulk market has continued to see some activity, whereas the grape market’s current sluggishness comes as something of a surprise given the limited size of the 2024 crop and the opportunities available.
Paid subscribers can view our updated bulk wine inventory graphs by volume and by varietal, and find out what wines and grapes are in demand, by reading the full California Report for April.
They can also read our latest vineyard update, which is keeping a close eye on the number of unpruned vineyards around the state – easier to discern now that bud-break is a few weeks in. Taking into account the pace of the grape market and the pruning levels, this month we tentatively set out what sort of crop size we can expect this year. The cool and wet spring delayed bud-break by about one to two weeks, but the growing cycle is still within a normal range.
Paid subscribers can read the full Ciatti California Report for April, including the latest Saxco Update detailing how tariffs are affecting beverage packaging sourcing and costs, by hitting this button.
CALIFORNIA REPORT - APRIL 2025
If you are not yet a paid subscriber and would like access to the full report, including –
- actionable bulk wine and grape market intelligence;
- our latest bulk inventory charts by volume and by varietal;
- our bulk/grape market activity barometer;
- the latest vineyard update;
- Saxco beverage packaging update;
Ciatti Global Market Report, March 2025
The 2025 harvests in the Southern Hemisphere are now in full swing and the picture – so far – is mixed: white grape tonnages have been exceeding expectations in Australia and bunches are large and heavy in New Zealand, but Argentina and South Africa’s crops appear to be – at best – on course for their downwardly-adjusted long-term averages, while Chile’s crush could come in significantly short due to a hotter-than-normal growing season reducing yields.
Globally speaking, the bulk market can be characterised as slow and steady since mid-February, with the Southern Hemisphere focused on harvest and demand in the Northern Hemisphere dampened by flat or declining retail sales and, in Spain, some elevated pricing on those wines most needed in Europe: generics, and especially generic white. Outside of generic white, few if any wines are making bulk-market waves as need is not pressing.
Pockets of activity have arisen: domestic demand in Chile has surged since the start of March as crop expectations there have been revised down; California’s bulk market continues to be more active since the turn of the year, as some buyers now require volumes after a prolonged period of foregoing purchasing; Italian wine exports to the US have been robust in anticipation of US import tariffs on EU products, which could potentially include wine. Tariff wars are, to say the least, unhelpful for a wine industry battling a number of pre-existing headwinds, their implementation or the threat of their implementation injecting even more uncertainty into bulk wine and grape markets working hard to come to terms with the structural supply-demand imbalance and the changing consumer trends that have been a drag on demand post-pandemic.
But as this month’s France page states: “Most in the industry remain sanguine and focused on growing sales where they can.” Attractive sourcing opportunities abound, as necessity – being the mother of invention – opens up new business avenues. Argentina can supply generic white for as much as 10% cheaper than European alternatives, and Malbec prices have also softened over the past year; California can now offer globally competitive generic wines in addition to traditional export offerings like White Zinfandel; the Cognac region of France, adjusting to reduced brandy exports, is serious about supplying competitivelypriced generic white to the wine market for the long-term. As tastes change, supply is moving flexibly to meet it: the Cognac Ugni Blanc can go into conventional wines but also sparkling bases, lower-alcohol wines, and RTD spritzer/cocktails; Australia is upping white wine production at the expense of red; California is already well advanced as a producer of low/no-alcohol wine. And as the traditional bottled wine avenues feel the sales squeeze, some redirected premium-quality wines are helping lift the overall quality of the bulk market’s offer.
Now available are high-quality growers, vineyards and wine supply historically tied up in contracts or other parts of the business. Suppliers are rightly bullish on price when protecting margin and cashflow, requiring sustainable pricing in the longer term in order to survive and thrive. Ciatti’s experienced broker team, present in all the major wine-producing countries, is on hand to bring suppliers and buyers together in mutually beneficial relationships: don’t hesitate to reach out directly and, in the meantime, read on for the latest from each market.
Ciatti California Report - March 2025
Noticeably improved market activity: Where and on what?
Bulk wine and grape activity levels since the turn of the year have been noticeably improved versus the final months of 2024, although much of the activity has consisted of inquiries rather than transactions. Publication in February of the CDFA’s preliminary 2024 harvest figure of 2.84 million tons - upped slightly to 2.88 million tons in the final report published March 10, but still the smallest in 20 years – failed to generate additional market momentum.
On the bulk market, the buyer pool remains shallow and activity is certainly not concerted enough to make a dent in overall inventory: Paid subscribers can view our updated bulk wine inventory graphs by volume and by varietal, and find out what wines are in demand, by reading the full California Report for March.
The grape market has experienced a smaller uptick in interest than the bulk market, likely in part because growers and grape buyers are waiting for the frost risk to pass and the 2025 crop potential to clarify. Budbreak, tentatively underway in early March, currently appears to be adhering to a normal timetable. The full California Report includes our latest vineyard health check.
From a buyer’s perspective, now is an opportune moment: Some highly attractive bulk wine and grape supplies are available for harnessing, either to boost existing programs or begin new ones. Some buyers are coming to appreciate, however, that the market’s low pricing is unsustainable for suppliers longer term, and are concerned about future availability if the mothballing and removal of vineyards continues at its present rate.
Paid subscribers can read the full Ciatti California Report for March, including the latest Saxco Update detailing how tariffs will affect beverage packaging materials, by hitting this button.
CALIFORNIA REPORT - MARCH 2025
If you are not yet a paid subscriber and would like access to the full report, including –
- actionable bulk wine and grape market intelligence
- our latest bulk inventory charts by volume and by varietal
- our bulk/grape market activity barometer
- the latest vineyard health check
- Saxco beverage packaging update
Ciatti Global Market Report, February 2025
Through the opening six weeks of 2025, the major bulk wine markets of the world continued where they left off at the end of 2024 – experiencing differing activity and pricing levels. One common theme is that the shorter winegrape crops of 2023 and 2024 have been most felt on generic wines, which appear to be in tight supply – at least in Europe, Chile and South Africa. This has led to some elevated generic-wine prices, especially in Spain where pricing increases since November have stimulated European interest in alternative sources such as France, Chile and Argentina.
The market for standard-quality varietal wines is less tight, but supply of varietal whites does feel closer to some kind of balance than reds, with carryover low in Chile, South Africa and Australia as the Southern Hemisphere’s 2025 harvests get underway. Early expectations are for average-sized crops at best: Chile’s is likely to be constrained by extensive vine removals over the past 24 months; similar applies in South Africa, where lack of cashflow in recent years has reduced vineyard investment; some grapes in Australia may go unpicked in response to the slowness of the red wine market; the same applies in New Zealand but on whites, following bumper 2022 and 2023 harvests that have left 2023 carryover still in tank.
The recent US-Canada tariff spat has added to industry fears around impediments to trade just as it works to adjust to, and combat, flat or declining wine consumption in key markets. As so often seems to be the case, wine was collateral damage (see California page), with retaliatory anti-American sentiment in Canada likely to hurt sales of US wine in its most important export market for some months to come. Italy’s wine exports to the US increased after November’s presidential election, in anticipation of US tariffs on EU imports; so far, the new US administration’s tariffs on EU products have been confined to steel and aluminium. Meanwhile, US-China and EU-China trade frictions rumble on.
Amid the tit-for-tat tariff battles, the wine industry must be prepared but undeterred, cognisant that where there are difficulties there are often opportunities as well. As ProWein’s 2025 Business Report says, amid all the noise the industry needs to be redoubling its focus on meeting “rapidly changing consumer preferences” (see this month’s ProWein Preview). This includes lowand no-alcohol wines, high-alcohol flavoured wines (a trend in the US), and everything in between, such as RTD wine-based cocktails and spritzers. Supply currently exists on the bulk market to meet such innovations right through to conventional mid-tier programmes. For the latest opportunities, get in touch with us directly – and you are welcome to come see us in person at ProWein, on Stand A21 in Hall 12. In the meantime, read on for detailed updates from each market.
Ciatti California Report - February 2025
Increased bulk wine and grape activity
The California Department of Food and Agriculture’s preliminary 2024 grape crush figure, published February 10th, totalled 2,843,646 tons, lower than widely anticipated and below Ciatti’s pre-harvest projection of 3.1-3.2 million tons. The crop was 22.8% smaller than 2023’s 3.685 million tons and the smallest since 2004’s 2.775 million. Yields were lighter, but uncontracted grapes going unpicked also likely took a meaningful toll on crop size; vineyard removals and mothballing will also have affected the result.
Available below to paid subscribers is our detailed analysis of the crush results by region and by variety, including commentary by Ciatti brokers such as:
“The combined volume change in Districts 6 and 8 amounts to a staggering 7.8 million fewer cases of wine.”
California’s bulk wine and grape markets were busier in the last two weeks of January and the first week of February than in the final few months of 2024. We suspect many buyers spent the end of last year working toward internal balance, inventory-wise and financially, freeing themselves up to move onto the market in the new year to assess the available options; some transactions have occurred. Read on below for details of what wines and grapes are in demand, where, and at what pricing:
“Wine is needed urgently for some programs following a lengthy period of foregoing purchases.”
If you are not yet a paid subscriber and would like access to the full Ciatti California Report, including –
actionable bulk wine and grape market intelligence;
our latest bulk inventory charts by volume and by varietal;
our bulk/grape market activity barometer;
the latest vineyard health check;
Saxco beverage packaging update;
– you can upgrade your subscription by clicking here.
2024 Grape Crush Report - Ciatti Comments
California's smallest winegrape crush since 2004
The California Department of Food & Agriculture's Preliminary Grape Crush Report for 2024 was released today, February 10th. The winegrape crush of 2,843,646 million tons was below the Ciatti Company’s pre-harvest projections of 3.1-3.2 million tons and the smallest since 2004.
The crush was lower than even the low end of Ciatti’s estimated range, which is surprising, and indicates that - as well as yields being down - there was potentially a larger amount of grapes unpicked than previously estimated.
Some observations:
The total tons crushed was down -22.8% versus 3.685 million tons in 2023. It was the least amount of tons crushed since 2004 - the last time California crushed less than 3.0 million tons of winegrapes.
The average tonnage price overall was down -6.8%, which does not reflect the grapes unpicked because they had no market.
Cabernet production was down -30.8%, with a total of 447,919 tons in 2024 versus 646,941 tons in 2023.
Chardonnay production was down -19.7%, totaling 524,111 tons versus 651,610 tons in 2023.
Pinot Noir production was down -25.9%, totaling 213,394 tons versus 285,806 tons in 2023.
The harvest in District 8, Santa Barbara/San Luis Obispo counties (which includes Paso Robles), was down -40.3%.
In the Interior, Lodi District 11 was down -24.5%.
Ciatti’s experienced brokers are available for further details, comment and analysis on the 2024 Grape Crush Report. Please call 415 458-5150.
This is a free release from Ciatti. Paid subscribers have access to our monthly Ciatti California Report which contains actionable bulk wine and grape market intelligence, bulk inventory charts by volume and varietal, and our bulk/grape market activity barometer. If you would like access to this content but are not yet a paid subscriber, do consider becoming one: You can check out our subscription plans by clicking below.
About
With 8 offices world wide, Ciatti serves our clients with the most up-to-date and accurate market information available. Please contact us with any questions. We are truly at your service.
Greg Livengood
President, Partner and Broker
Greg joined Ciatti in 1994 and became a partner in 1997. Greg has used his degree in International Relations to build Ciatti into the world recognized leader in the alcohol beverage business. Greg is currently the President and CEO of the company and drives the international group.
Email:greg@ciatti.com
Steve Dorfman
Partner and Broker
Steve Dorfman joined Ciatti in 2007 after working with the Brown-Forman Corporation, Fetzer Vineyards, Sonoma-Cutrer Vineyards and Bolla Wine brands for 24 years. His primary responsibilities are wine and grape sales within California, and the supply demands of markets throughout Europe, South Africa and Australia.
Email:steve@ciatti.com
John Ciatti
John White
Partner and Broker
Ciatti has a long history of seeking to provide clients with a well rounded team of brokers whose experience in the industry cover the breadth of the business. John joined the company in 2003 after working as a Winemaker for several of California's major producers for 20 years. John's emphasis is maintaining relationships with California wineries ranging from the largest to the smallest. John has focused on all aspects of growth within the business, from long-term custom crush contracts to spot bulk wine and grape sales. His speciatly is the sourcing and selling of premium varietal lots from the coastal and interior regions of California.
Email:johnw@ciatti.com
Chris Welch
Partner and Broker
Chris Welch joined Ciatti in 1994, and began brokering bulk wine and grapes in 2003 and became a partner in company in 2007. The premium and super premium segment of the California wine industry are the breeding grounds of innovation and where Chris truly excels. His consistent approach helps small and medium size wineries and negotiants achieve the innovation and growth they seek. Chris also works very closely with the Oregon Wine Industry.
Email:chris@ciatti.com
Glenn Proctor
Partner and Broker
Glenn Proctor joined Ciatti in 2003 and became a partner in 2007. Glenn advises wineries on supply positioning and works closely with growers and wineries in marketing their grapes and wine. He specializes in spot and contract bulk wine and grapes sales from all regions of California. He has over 23 years of experience in wine supply strategy, wine-grape quality improvement, brand strategy, and business development. Glenn was previously the Vice President of Winegrowing for Diageo Chateau and Estate Wines, and before that was a Director at Benziger/Glen Ellen Winery during its rapid growth in the early 1990's.
Email:glenn@ciatti.com
Broker
Johnny Leonardo joined Ciatti in 2004 as a broker and knows that surviving in a dynamic wine industry requires one to be a Jack-of-all-Trades. He has experience in all aspects of winery and vineyard operation, from the field to the street. Johnny has developed and managed vineyards, and worked in wine sales and marketing.
Email:johnny@ciatti.com
Andy Bivona
Broker
Andy joined Ciatti as a broker in 1996. His areas of expertise and responsibility include grape and fruit concentrates, beverage and industrial alcohol, fruit alcohol and brandy, and food specialty products. Andy's knowledge of these products has allowed him to branch out and work throughout various parts of the world including Mexico, South America and Europe. Andy remains a wealth of knowledge and offers a creative approach to all endeavors.
Email:abivona@hvc.rr.com
Todd Azevedo
Broker
Todd Azevedo joined Ciatti in 2004 after completing his Agricultural Finance degree from Cal Poly San Luis Obispo. Although Todd brokers wine, grapes, and wine products throughout the state of California, Todd's focus is on the California Central Coast.
Email:todd@ciatti.com
Mark Ishimaru
Customer Account Representative - North America
Joined Ciatti in 2011.
Email: mark@ciatti.com
Molly Richardson
Customer Account Representation - Grower Accounts
Joined Ciatti in 2016
Email: Molly@ciatti.com
Administrative/Accounting Assistant
Joined Ciatti in 2000.
Email:alette@ciatti.com
Michael FungCustomer Account Representative - Sample Room
Joined Ciatti in 2013.
Email: michael@ciatti.com
Contact
Contact List
| Title | Name | Phone | Extension | |
|---|---|---|---|---|
| Partner/Broker | John Ciatti | john@ciatti.com | 4152640762 | |
| Partner/Broker | Steve Dorfman | steve@ciatti.com | 7073213843 | |
| Partner/Broker | Greg Livengood | greg@ciatti.com | 4154975032 | |
| Partner/Broker | Glenn Proctor | glenn@ciatti.com | 7073370609 | |
| Partner/Broker | Chris Welch | chris@ciatti.com | 4152988316 | |
| Partner/Broker | John White | johnw@ciatti.com | 4152500685 | |
| Broker | Todd Azevedo | todd@ciatti.com | 4152656943 | |
| Broker | Johnny Leonardo | johnny@ciatti.com | 4157174438 | |
| Broker | Dennis Schrapp | dennis@ciatticanada.com | 9059338855 |
Location List
| Locations | Address | State | Country | Zip Code |
|---|---|---|---|---|
| CIATTI Global Wine & Grape Brokers | 201 Alameda Del Prado, #101, Novato | CA | United States of America | 94949 |
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