2026-05-20
The world’s bulk wine markets were largely quiet through April and into early May, as higher costs and economic uncertainty tied to the Iran war added to a buyer slowdown that had already been in place for months, according to Ciatti Global Wine & Grape Brokers’ May 2026 market report.
The report said many producers are facing higher prices for fuel, transportation and fertilizer, while some countries have also seen inflation and interest rates rise. That has made buyers more cautious at a time when inventories remain heavy in many regions and demand is still weak.
Ciatti said the Southern Hemisphere’s 2026 harvests are now complete and new wines are beginning to be sampled. The company said the next few weeks will be important because they will show how much demand exists as those wines come to market and pricing is set. That, in turn, will help indicate how active the 2026 buying season may be.
The report cited the International Organisation of Vine and Wine, which estimated global wine production in 2025 at 227 million hectoliters, up just 0.6% from 2024. That followed a 2024 crop that was the smallest recorded since at least 1961. Smaller harvests in recent years have helped reduce some inventories and have pushed up grape and bulk wine prices in some markets over the past year.
But consumption continues to fall. The OIV estimated that global wine consumption in 2025 was down 2.7% from 2024 and 14% below 2018 levels. All of the traditional top wine-drinking countries saw declines last year, with Portugal one of the few exceptions, rising 5.6% and moving into the top 10 ahead of Australia, which fell 2.2%, and China, which dropped 13%.
That decline has weakened pressure from retailers to secure supply. Ciatti said distributors and retailers are now more price-sensitive because they face their own cost pressures and know that wine stocks still exceed demand. In Spain, the report said suppliers need to remember that buyers have alternatives in a global market and are increasingly skilled at using them.
The report also pointed to continued experimentation by producers trying to match changing consumer tastes. It noted growth in low- and no-alcohol wines and in wine-based ready-to-drink products, though both remain small parts of larger categories dominated by spirits and malt beverages.
At retail, consumers in some markets are seeing lower prices because premium wines are being diverted into bulk channels and because private-label wines and discounted brands are taking more shelf space. Ciatti warned that those lower prices, combined with reduced sales volumes, may not be sustainable for many wineries or growers. Delayed payments and vineyard removals or mothballing are already widespread, the report said.