Compacting the problem, it says, is that demand for wine is almost back to normal levels that were disrupted by COVID-19.
"This would be the third consecutive year [when] the global production level is below average," OIV said in a statement Thursday.
"Italy, Spain and France ... lost about 22 [hectoliters] with respect to 2020 due late spring frost and overall unfavorable climatic conditions."
The OIV forecast is based on data collected from 28 countries, which account for about 85% of all wine production in 2020. File Photo by Debbie Hill/ UPI
The organization said 2021 estimates are between 247 and 253 hectoliters -- which is 7% lower than its 20-year average.
France, Italy and Spain account for about 45% of global wine production and almost 80% of production in the European Union, OIV said.
"The impact of this downfall for the global wine sector is yet to be evaluated given the current context where the COVID-19 pandemic is still generating a relatively high degree of volatility and uncertainty," the organization added.
By contrast, the OIV forecast said that Germany, Portugal, Romania, Hungary and the United States have seen a slight increase in production.