World currently facing severest wine shortage since last 40 years

The world is facing a wine shortage, as consumer demand has already significantly outstripped supply globally, a report has warned.

The research by America's Morgan Stanley financial services firm said demand for wine exceeded supply by 300m cases in 2012.

According to the BBC, the firm describes this as the deepest shortfall in over 40 years of records.

Last year, production also dropped to its lowest levels in more than four decades.

Global production has been steadily declining since its peak in 2004, when supply outweighed demand by about 600m cases.

At the same time, there are currently more than one million wine producers worldwide.

Authors of the report said that the shortage could be partly explained by 'plummeting production' in Europe due to 'ongoing vine pull and poor weather'.

At the same time, production in the 'new world' countries - the US, Australia, Argentina, Chile, South Africa, New Zealand - has been steadily rising, the report added.