We have passed peak wine
Unstable weather in Argentina and western Europe has lead to a global drop in wine production, while demand continues to rise around the world. The findings were published in a report by Morgan Stanley Research.
CNN reports that France consumes the most wine, followed by the United States and China. Demand in China has quadrupled in the past four years, and demand in the U.S. also continues to rise:
"America consumes 12% of the world's wine but produces just 8%. And the U.S. is only getting thirstier ; consumption rose 2% last year.
The U.S. wine making industry is also growing. The number of American wineries has "expanded dramatically" in the last 15 years, according to the report. But most of them are "boutique" operators rather than major producers, so they're not driving any real growth in supply."
Although 2013 produced a much better harvest for vineyards, it doesn't look like the trend is going to reverse itself. Roberto A. Ferdman at Quartz writes:
"World production hasn’t managed to keep pace. Outputs have steadily declined in a number of the world’s most prosperous regions. Overall, global production has been on a downward trend ever since the early 2000s, when there were still massive excesses. Peak wine, the report holds, isn’t merely upon us; it already happened—back in 2004."
How bad is the shortfall? Morgan Stanley estimates there's a shortage of about 300 million cases per year.