The annual sales of the global wine industry slowed last year to its lowest level in a decade, according to a study by the Wine Institute, which tracks the industry.
The report said wine sales worldwide fell 4.2% to $1.2 trillion last year, the lowest level since the U.S. began tracking the industry in 1988.
In the United States, sales fell 5.6%.
The study also found the number of U.K. wines sold increased by only 2.7% in the past year, while wine exports fell 7.5%.
The U.N. Food and Agriculture Organization reported in November that the global market for wine, which accounts for nearly two-thirds of the total global wine market, will shrink by 4% in 2020 to $2.4 trillion.
The Wine Institute also said that global sales of sparkling wines, which account for half of the market, declined by 5.1% last year.
Last month, the International Bottled Wine Trade Association said the industry’s annual sales fell by 8.6% in 2016 to $6.1 trillion.
However, the industry still accounted for a fifth of global wine sales last year at $1 trillion, and that share could rise.
In its annual report last month, International Bottles said the number one reason for declining wine sales was the decrease in demand for sparkling wines and other nonalcoholic drinks.
“The decline in the consumption of sparkling beverages, particularly in emerging markets, has been a significant contributor to the slowdown,” the report said.
“A growing number of countries are now exploring alternatives to sparkling beverages.”
The report found that the U:s.
is one of the countries that is experiencing the most steep decline in sales.
Sales fell 13.3% to an all-time low of $931.2 million in 2016.
In contrast, China’s sales fell only 1.2%.
China’s economy is expected to grow 4.5% in 2019 and 8.3%, according to the National Bureau of Statistics.
Sales of U: wines fell by 10.6%, while sales of Chinese wines rose 6.7%.
The decline in U.k.: sales came despite a surge in Chinese exports, which grew 21.9% in 2018.
Sales in the United Kingdom also fell 11.4%.