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Cheers To 2025? Sparkling Wine Production And Exports In The EU Decline By 8%

As the New Year has already passed, many had eagerly anticipated a glass of bubbly to ring in the celebrations. However, this year, fewer bottles were available for toast, as production and exports of sparkling wine from the EU saw a sharp decline in 2023 due to the impact of extreme weather on vineyards.

According to the latest Eurostat data, the EU produced 1.496 billion litres of sparkling wine in 2023, a decrease of 8% compared to the previous year. Italy remained the leader in production, contributing 638 million litres, followed by France with 312 million litres and Germany with 263 million litres.

In terms of exports, the EU shipped 600 million litres of sparkling wine to non-EU countries in 2023, marking another 8% drop. Italy’s Prosecco claimed the top spot in exports, representing nearly half of the total, while French Champagne followed at 15%, Spanish Cava at 10%, and sparkling wines from fresh grapes at 17%.

Climate Change’s Role In Production Decline

One of the key factors behind the production slump is the changing climate. Heavy rains, droughts, and storms, all exacerbated by climate change, are having a direct impact on vineyards, altering the taste of wine and, in some cases, threatening the very existence of certain varieties.

In Italy, extreme weather events and soil degradation have led to reduced grape yields, endangering Prosecco production, which is expected to decline by up to 20%. Similarly, Spain’s Cava is facing challenges from severe droughts, particularly in Catalonia, where many villages depend on water-intensive viticulture. Despite hopes that 2025 will bring more rainfall, major producers are urging the Spanish government to adopt irrigation solutions and other measures to address the growing threat of water shortages.

In response to the region’s chronic water shortages, Catalonia’s regional government has unveiled a €2.3 billion investment plan, set to span until 2040. The plan includes a €200 million seawater desalination plant on the Costa Brava, but financial backing from the Spanish government will be crucial for its success.

EU Farm Output Prices Decline For The First Time In Nine Months

EU Market Adjustments Signal New Price Trends

Agricultural output prices across the European Union declined in the fourth quarter of 2025, marking a shift after several quarters of increases. Data from Eurostat shows that farm gate prices fell by 1.9% compared with the same period in 2024.

Crisis of Declining Prices In Select Markets

Cyprus recorded one of the more notable decreases in agricultural input costs among EU member states, with prices falling by 2.6% compared with Q4 2024. The reduction eased cost pressures for the local agricultural sector following periods of higher prices earlier in 2025. Across the EU, prices for goods and services consumed in agriculture remained relatively stable. Non-investment inputs such as energy, fertilisers and feedingstuffs showed limited overall changes during the quarter.

Country-Specific Divergence In Price Movements

Eurostat data highlights considerable variation across member states. Fifteen EU countries recorded declines in agricultural output prices. Belgium registered the largest decrease at 12.9%, followed by Lithuania (8.2%) and Germany (6.0%). At the same time, twelve countries reported increases in output prices. Ireland recorded the strongest rise at 6.8%, followed by Slovenia (5.6%) and Malta (4.2%).

Stability In Agricultural Inputs Amid Commodity Shifts

Agricultural input prices also showed mixed developments. Eleven member states recorded declines, including Cyprus (2.6%), Belgium (2.1%) and Sweden (2.0%). Other countries experienced moderate increases, including Lithuania (4.2%), Ireland (3.3%) and Romania (2.5%). Among major agricultural commodities, milk prices declined by 4.1% while cereal prices fell by 8.9% across the EU. In contrast, fertilisers and soil improvers increased by 7.9%, reflecting continued volatility in input markets.

Outlook For EU Agriculture

The latest Eurostat data points to uneven price developments across the EU agricultural sector. While input prices remained broadly stable in many markets, movements in output prices varied significantly between member states. These trends highlight the need for farmers and policymakers to adapt to shifting commodity prices and changing cost structures across the European agricultural market.

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