Bad weather in many regions was behind the 3.2 per cent fall in global production to 267 million hectolitres (mhl) from 276 million in 2015, the International Organisation of Vine and Wine (OIV) said at a news conference in Paris.
France, the world's second-biggest wine producer after Italy, lost 3.5 mhl in output volume and Argentina, the world's number nine, 3.9 mhl.
In percentage terms, the biggest losers were Brazil, where production fell 55 per cent, and Hungary, where it dropped by 38 per cent.
Meanwhile, drought cut South Africa's production by six percent.
The word's total wine-growing surface remained stable at 7.5 million hectares, the OIV said.
China added to the total size of its vineyards, while wine-growing surfaces declined in Turkey and Portugal.
Italy, France, Spain, China and Turkey together make up more than half of the world's total vineyard size.
The world's wine drinkers guzzled a total of 242 mhl last year, a slight increase from 2015 but still well below levels seen before the financial crisis cut consumption.
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