There's just not enough wine in the world, says Morgan Stanley, and the problem is only going to get worse.

The industry is experiencing an "undersupply of nearly 300 million cases" a year, according to a report from Morgan Stanley Research.

Australia-based analysts Tom Kierath and Crystal Wang say the shortage comes despite the fact that there are one million wine producers globally, making 2.8 million cases each year. About half of that comes from Europe.

But that's not enough to keep with worldwide demand.

Global production fell by more than 5% last year – to its lowest level since the 1960s – primarily do to bad weather in France and Argentina.

Read - Thirsty? There's a global wine shortage