Croatia ranks first in Europe for wine price increases

Croatia tops Europe for wine price increases

Croatia ranks first in Europe for rising wine prices. Over the past four years, prices have surged by a staggering 52%, according to data from Eurostat, and this trend is likely to continue.

Cyprus has seen a 48% increase, while wine prices in Hungary have risen by 45%, reports Poslovni dnevnik.

The broader region, including Slovenia and Romania, has also experienced significant price hikes, with wine becoming 32% more expensive in these countries over the same period.

What is particularly concerning is that wine prices in Croatia have increased seven and a half times more than the EU average. Between 2020 and 2024, the average wine price increase across the EU was 7%.

Global Wine Production Expected to Hit Record Low

Global wine production is forecast to fall to its lowest level since 1961. While specific figures for last year are not yet available, data from the Financial Agency (Fina) indicate that Croatian winemakers had an excellent year in 2023.

Businesses in the wine production sector recorded a net profit of €5.7 million, a remarkable annual increase of 141.6%, according to a Fina analysis.

In 2023, 275 wine production businesses employing 1,542 workers operated in Croatia. This marked a 1.9% rise in employment compared to the previous year. These businesses generated €141.9 million in total revenue, up 12.9% from the year before. Total expenditures also rose by 9.9%, reaching €134.4 million.

Meanwhile, the International Organisation of Vine and Wine (OIV) predicts global wine production this year will drop to between 227 and 235 million hectolitres, the lowest level in over six decades.

This decline is driven by extreme and atypical weather conditions, including early frosts, heavy rainfall, and prolonged droughts, which have severely impacted vineyard productivity.

Uneven Production Outlook Across Countries

Among the world’s top 29 wine-producing countries, which collectively account for 85% of global production, only a few are expected to achieve average or above-average production levels.

The OIV notes that production in 2024 will likely be 2% lower than in 2023 and 13% below the ten-year average.

France, the largest wine producer in 2023, is projected to see a 23% decrease in production this year. Italy, however, is expected to recover slightly and reclaim the top spot.

Elsewhere, countries such as the United States and several Eastern European nations, including Hungary, Georgia, and Moldova, may benefit from favourable weather conditions, enabling them to achieve average or above-average wine production.

Broader Food Price Increases

Alongside wine, milk and vegetable prices have also risen significantly across Europe, although Croatia does not top the rankings for these categories.

Despite the challenges, Croatia’s wine industry has demonstrated resilience, capitalising on strong domestic and international demand to navigate a challenging global environment.