Wine Shortage: Global Consumption Increases By 8 Percent While Production In Spain, France, Italy Decreases; Demand Grows In US, China

Is a global wine shortage imminent? Global wine consumption is increasing, while production in countries like Spain, France, and Italy is decreasing. Growing demand in US and China may lead to a global wine shortage.

According to a report released this week by Morgan Stanley Research, there was a global under-supply of about 300 million cases of wine in 2012, the largest deficit recorded in almost 50 years, Fox News reports.

What is causing this possible global wine shortage? Production in the world's three largest wine-producing countries - Spain, France, and Italy - has sharply decreased as less land is being used to grow grapes in these countries, according to Fox News.

Spain, France and Italy produce 60 percent of the world's wine.

Meanwhile, global consumption of wine is increasing. Wine consumption worldwide has increased 8 percent since 2000.

"The data suggests there may be insufficient supply to meet demand in coming years, as current vintages are released," the report concludes, Fox News reports.

Demand of wine is increasing in countries like the U.S. and China. According to the report, both countries are projected to consume over 400 million cases of wine each by 2016.

The U.S. drinks roughly 12 percent of the world's wine and has doubled its per capita consumption since the start of the century. In China, wine consumption has increased almost 150 percent in the past five years, according to Fox News.

Interestingly, wine consumption in European countries like France, Spain, Italy, and the UK is decreasing.

However, it is unlikely that a global wine shortage will occur this year or next. In fact, another report released this week by the International Organisation of Vine and Wine suggests that there will be a global increase in wine production in 2013, despite shrinking vineyards and a threat to the  long term supply of wine.