# Grapes & wine: Extraction

Why almost every vine stands on borrowed roots

Source page: https://www.materialinsights.org/commodities/grapes/extraction/

What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.

Grapevines grow in Mediterranean, temperate and some subtropical climates, mostly grafted onto rootstocks that resist the phylloxera pest. New vines take several years to bear, then crop for decades. Table grapes need careful hand-picking and fast cooling. Wine grapes are picked when sugar and acid balance, then crushed and fermented, with the skins for red wine. Wine ages in tanks or barrels for months or years. Geman notes that temperature, sunshine, humidity and rainfall dominate wine's weather risks, and a single frost can cut yields sharply.

Grapes are perennial vines, so supply depends on decisions made years earlier. Three main routes exist. Low-yield wine vineyards in Europe, the Americas, Australia and South Africa grow vinifera varieties for crushing. Irrigated table grape vineyards in China, India, Peru, Chile, Turkey and South Africa grow seedless varieties for fresh sale. India uses a double-pruning system that gives one winter harvest. Grapes for raisins are dried on the vine, on racks or in sheds. Yields vary widely: about 6-11 t/ha in the big European wine countries against 22-26 t/ha in Indian and Peruvian table grape vineyards (FAOSTAT 2024).

#### Methods compared

| Method | Share of supply | Typical scale | Recovery / efficiency | By-products | Unit cost |
|---|---|---|---|---|---|
| **Wine vineyards (France, Italy, Spain, US, Australia, Chile)** | Italy 10.1%, Spain 7.1%, US 6.5%, France 6.3% of world grape output in 2024 (FAOSTAT) | world wine output 225.8 million hl in 2024 (OIV) | yields 6.0 t/ha in Spain, 6.4 in France, 10.7 in Italy, 13.1 in the US (FAOSTAT 2024); Champagne yield fell to 8,250 kg/ha after the 2003 frost against an average 10,400 (Geman) | pomace for brandy, grape-seed oil and compost | n/a |
| **Irrigated table grape vineyards for export (Peru, Chile, South Africa)** | Peru 13.9% and Chile 12.1% of world fresh grape export value in 2024 (UN Comtrade) | Peru and Chile exported 0.77 Mt and 0.53 Mt of table grapes in 2025 (USDA PSD) | yields 25.8 t/ha in Peru and 14.7 t/ha in Chile (FAOSTAT 2024) | culls for juice and raisins | n/a |
| **Double-pruned table grapes (India, Maharashtra and Karnataka)** | India 5.1% of world grape output in 2024 (3.90 Mt, FAOSTAT) | Nashik exports about 1.6 lakh t in the 2023-24 season, 1.2 lakh t of it to Europe (India Sea Trade News, Mar 2025) | 21.7 t/ha (FAOSTAT 2024) | culls for raisins, juice and wine | n/a |
| **Large domestic table grape production (China)** | China 22.2% of world grape output in 2024 (16.9 Mt, up from 3.4 Mt in 2000, FAOSTAT) | China table grape exports 0.77 Mt in 2025 (USDA PSD) | 21.8 t/ha (FAOSTAT 2024) | wine and juice | n/a |

#### How each method works
**Wine vineyards (France, Italy, Spain, US, Australia, Chile)**

Vineyards grow vinifera varieties, often under appellation rules that cap yields, and sell grapes to wineries or crush them in their own cellars.

Origin and brand premiums, but exposed to frost, hail and heat, and to falling wine consumption in traditional markets.
 FAOSTAT 2024; OIV 2025; Geman (2005) **Irrigated table grape vineyards for export (Peru, Chile, South Africa)**

Growers in desert valleys use drip irrigation and new seedless varieties to time harvests for northern-hemisphere winter, then ship by reefer to the US, Europe and Asia.

Counter-seasonal premium prices, but water scarcity and long transit times.
 UN Comtrade 2024; USDA PSD; FAOSTAT 2024 **Double-pruned table grapes (India, Maharashtra and Karnataka)**

Growers prune after the summer harvest to build canes and again in autumn to force fruiting, harvesting from January to April. Nashik is the export hub, shipping mainly to Europe; Sangli also dries grapes into raisins.

High yields and a counter-seasonal slot in Europe, but unseasonal rain and strict EU pesticide residue limits are recurring risks.
 FAOSTAT 2024; India Sea Trade News, Mar 2025 **Large domestic table grape production (China)**

China has expanded vineyards rapidly, mainly for fresh domestic sale, and now also exports table grapes to Southeast Asia.

Large, cheap supply for the home market, but quality and residue standards limit access to premium export markets.
 FAOSTAT 2024; USDA PSD Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.

#### Who does it: global

| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| **E. & J. Gallo Winery** private; volumes not published | US | wine producer | not published | n/a |  |
| **Constellation Brands** volume not published in a source found | US | wine and spirits (and beer) | not published | n/a |  |
| **Treasury Wine Estates** volume not published in a source found | Australia | wine producer | not published | n/a |  |
| **Viña Concha y Toro** volume not published in a source found | Chile | wine producer and exporter | not published | n/a |  |

#### Who does it: India

| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| **Sula Vineyards** case volumes and grapes crushed not stated in the results release | India | largest Indian winemaker (Nashik); over 50% of the domestic wine market | 619 Rs crore revenue from operations (own brands Rs 546.2 crore, wine tourism Rs 60.3 crore) | FY2025 | [Sula Vineyards Q4 and FY25 results](https://sulavineyards.com/files/0525/Q4%20%26%20FY25%20Financial%20Results.pdf) |
| **Mahagrapes (Maharashtra Rajya Draksha Bagaitdar Sangh)** volume not published in a source found | India | grower partnership and table grape exporter | not published | n/a |  |
| **Nashik grape exporters (aggregate)** | India | table grape export | 1.6 lakh t exported in the 2023-24 season (1.2 lakh t to Europe) | 2023-24 | [India Sea Trade News, Mar 2025](https://indiaseatradenews.com/25-drop-in-grape-export-from-nashik/) |

India grew 3.90 Mt of grapes in 2024 (5.1% of world output, FAOSTAT), mostly table grapes, and exported about 0.30 Mt in 2025 (USDA PSD), led by Nashik. Wine is a small niche dominated by Sula. Nashik's Jan-Feb 2025 exports fell 24% to 66,000 t from 87,000 t a year earlier.

## Other sections

- [Summary](https://www.materialinsights.org/commodities/grapes/index.md)
- [Overview](https://www.materialinsights.org/commodities/grapes/overview/index.md)
- [Correlation](https://www.materialinsights.org/commodities/grapes/correlation/index.md)
- [Production](https://www.materialinsights.org/commodities/grapes/production/index.md)
- [Stocks](https://www.materialinsights.org/commodities/grapes/stocks/index.md)
- [Cycles](https://www.materialinsights.org/commodities/grapes/cycles/index.md)
- [Trading](https://www.materialinsights.org/commodities/grapes/trading/index.md)
- [Movement](https://www.materialinsights.org/commodities/grapes/movement/index.md)
- [Criticality](https://www.materialinsights.org/commodities/grapes/criticality/index.md)
- [Characteristics](https://www.materialinsights.org/commodities/grapes/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/commodities/grapes/emissions/index.md)
- [Relationships](https://www.materialinsights.org/commodities/grapes/links/index.md)