Global wine stocks are at their lowest point, according to latest quarterly report on trends and outlook for International wine market by global financial services company Robobank.

The reduced inventory is mainly due to decreased productions and comes at a time when there is high consumer demand.

Similarly, wine grape market in the US struggles as there is very little domestic bulk wine available in markets and shift of consumer demand towards lower-priced wines.

Robobank Food & Agribusiness Research and Advisory (FAR) group executive director and report author Stephen Rannekleiv said the impact of these trends are not fully consistent across all markets due to a wide variety of area-specific factors affecting demand.

"Fluctuating exchange rates continue to shift the competitive positioning of various countries," Rannekleiv added.

"The sluggish worldwide economy continues to shift demand toward lower-priced wines."

The increase in prices has also led many wineries to adopt practices like vineyard acquisitions, expansions and secure supply, wherein they sign long-term contract with growers.

Moreover, the increased value of US dollar has led to falling of value of the US wine exports by 2% in Q2 2012 as compared to that of 2011.

The first four months of 2012 showed rise in imports to the US as wineries followed alternative supply sources to compensate with the struggling bulk wine market.

However, the bulk wine imports were more than doubled with increases coming from a wide range of suppliers especially from Chile, Argentina and Australia.

On the advent of increased bulk wine imports alongside reports of above average crop production in California, the increased production would be a welcome news for the wine market.