The press release dated 28 March 2025, titled “Commission supports the EU wine sector facing new challenges,” highlights several challenges facing the wine sector, such as shifting consumer trends, climate change, and market uncertainties.

Geographically, the text focuses on the EU, emphasising its role as a major player in global wine production and exportation and addressing the specific needs of member states within the Union.

This press release is highly relevant for the EU wine industry as it outlines comprehensive measures proposed by the European Commission to address critical challenges such as shifting consumer preferences, climate change, and market uncertainties. These challenges threaten the sector’s competitiveness, economic viability, and social significance. 

The proposed policy changes empower Member States to manage production surpluses through actions like grubbing up and green harvesting, helping stabilise the market and protecting producers financially. Flexibility in replanting authorisations allows producers to adapt investments under regional needs and evolving market conditions, fostering long-term sustainability.

Moreover, the proposal prioritises climate resilience by increasing financial support for investments to mitigate and adapt to climate change impacts, which is crucial given the sector’s vulnerability to environmental shifts. Marketing improvements, including simplified regulations on innovative products and harmonised labelling, will reduce trade barriers and production costs, enhancing market accessibility within and beyond the EU. Supporting wine tourism and extending promotional campaigns in third countries will boost rural economies and strengthen the global presence of EU wines.

 The provided information is intended for: 

• Wine producers;

• Vineyard owners;

• Agricultural policymakers;

• EU Member State authorities responsible for agricultural and rural development;

• Producer groups and businesses involved in wine-related tourism and marketing activities;

• Economic and rural development advocates are concerned with the socio-economic impact of viticulture in rural areas.

Key Insights:

Global Market Influence: The EU wine sector is dominant, accounting for 60% of worldwide production and export values. This reflects its economic significance and highlights the pressure it faces from increasing competition from non-EU countries. The proposed measures aim to safeguard this crucial sector against emerging global trends.

Production Potential Management: By allowing member states to manage production by removing excess vines and unripe grapes, the Commission recognises the necessity of market stability. This approach effectively balances supply and demand, thereby reducing potential financial strain on producers.

Investment in Climate Resilience: The significant increase in financial assistance for climate-related investments (up to 80% coverage) illustrates the urgency in adapting wine production to climate change. This support emphasises the connection between sustainability efforts and long-term profitability for producers, enhancing resilience to environmental challenges.

Evolving Consumer Preferences: As consumer trends shift, especially towards lower-alcohol and innovative wine products, clearer marketing rules will ensure that producers can effectively meet these preferences. Streamlined marketing processes will foster creativity while maintaining quality.

Simplified Trade Through Harmonisation: The push for harmonised labelling across the EU not only lowers costs for producers but also simplifies the process for consumers seeking information. This transparency can enhance consumer confidence and encourage wine consumption, boosting industry revenue.

Revitalisation of Rural Areas: The support for wine tourism reflects an understanding of the sector’s role in rural development. By promoting geographical indications and tourism initiatives, the proposal seeks to strengthen local economies and preserve the wine sector's cultural footprint.

International Marketing Strategy Enhancement: Extending promotional campaigns in third countries from 3 to 5 years allows producers more time to establish a foothold in international markets. This extended period for market consolidation can lead to better sales outcomes and brand recognition for EU wines abroad.

Expected outcomes of the suggested measures:

• The wine sector remains competitive, resilient, and economically vital in the long term, despite challenges such as shifting consumer trends, climate change, and market uncertainties. 

• Greater flexibility in planting authorisations, allowing producers to make investment decisions better aligned with regional needs and current market realities.

• Benefit from heightened financial support for climate change mitigation and adaptation, increasing resilience to environmental challenges. 

• Marketing will also become more streamlined and efficient, with more precise rules for innovative products and harmonised labelling, facilitating trade and reducing costs.

Next steps:

• The proposal will first undergo the EU legislative process, following its announcement by Commissioner Christophe Hansen. 

• The adoption of the new framework will enable swift implementation, creating more opportunities for producers.

• This proposal is the fulfilment of prior commitments made by the High-Level Group on Wine Policy (HLG), translating its recommendations into concrete legislative action.

Balazs UJVARI - Spokesperson

Phone: +32 2 29 54578

Mail: balazs.ujvari@ec.europa.eu

Thérèse LEREBOURS - Press Officer

Phone: +32 2 29 63303

Mail: therese.lerebours@ec.europa.eu