In this 5-minute extract from Towards holistic sustainability: managing economic and environmental sustainability in the wine industry, Simone Loose from Geisenheim University, a researcher underscores the critical importance of economic sustainability in the wine industry, within the broader framework of the “three pillars” of sustainability.
While environmental and social efforts are essential, he warns that without financial viability, wine estates cannot survive.
Citing recent data, he notes a growing economic strain across the wine sector driven by climate change (like drought and reduced yields), rising production costs, and declining consumer purchasing power. According to OIV, global wine harvests have hit their lowest since 1960, and financial pressures are accelerating.
Geisenheim has tracked wine estate financial performance for over 30 years. Even before recent crises, 30% of participating estates were not economically viable. Many non-participating ones may be in worse shape. Costs have since surged 30–40%, with wineries unable to pass these increases on to consumers.
Key points covered:
- Economic sustainability is a prerequisite for long-term survival, even for socially or ecologically sound businesses
- Rising costs, climate impacts, and lower demand are putting wine producers under pressure
- Many small family-run wineries are cutting back wages and investment, threatening long-term continuity
- Lack of reinvestment in equipment and infrastructure puts operations at risk when machinery fails
- Sustainability must be holistic, but economics remains the foundation that enables both social and environmental progress
This talk offers essential insight into the financial realities facing wine producers today, and why sustainable viticulture must include strong economic foundations.
