The wine market - France

The global wine market, valued at US$326.6 billion in 2020, experienced a 10% decline from its 2019 valuation due to the COVID-19 pandemic. Despite this setback, the market is expected to recover and reach an estimated value of US$444.93 billion by 2027. In France, the wine market in 2020 is estimated at 29.689 billion euros, which reflects a similar decline of 10%, largely attributable to the pandemic. French wine exports have also been impacted, with a decrease in exports by 8% in 2020, although the United States' imposition of a 25% surtax on French wines, has been suspended for the next 5 years as of June 2021. French wine production also experienced fluctuations due to weather conditions and external challenges, with a decrease of 14.1% followed by a 10.8% increase in 2020. Despite these dynamics, wine continues to be an integral part of the French culture and identity, holding a strong position on the international stage.

Evolving Preferences and Challenges in the French Wine Market

The French wine market holds a prominent position both internationally and domestically, deeply rooted in the nation's culture and traditions. Despite this esteemed status, the market has witnessed a significant transformation in consumption patterns over the years, with a shift from routine consumption to more cultural and sporadic use. Notably, the market has faced a structural decline, a trend that is indicative of broader lifestyle changes and reflects the evolution from a daily dietary staple to a product savored on special occasions. One of the main concerns within this market is the negative impact of external events such as Brexit, the surtax imposed by the United States, and not least, the global coronavirus crisis. These have posed considerable threats to the wine industry, alongside the internal challenge of a steady decrease in domestic wine consumption in France. French consumers are drinking wine less frequently than they did in past decades, with current levels showing an average of one glass of wine per day compared to 3.5 glasses back in 1960. The annual per capita wine consumption has plummeted from around 128 liters in the 1960s to between 35 and 40 liters. Interestingly, although the market is seeing a downward trend in volume, it does not necessarily indicate a decline in interest or value. Consumers now favor quality over quantity, opting for premium selections which is evidenced by the rise in the producer price index for wine, climbing from approximately 75 to over 100. This heightened interest in quality is also reflected in the popularity of organic wines, which have carved out a sizeable niche in the market, expanding at a notable pace and gaining a significant market share in both volume and value. Major buyers in the market tend to be predominantly male, between 50 and 65 years old, and residing in large urban areas. In contrast, regular consumers are more often women, aged between 35 and 50 years old, belonging to modest income groups and living in smaller communities. Geographically, the production of French wine is quite extensive, with regions like Occitania and New Aquitaine being significant contributors to the overall volume. The sparkling wine segment, especially Champagne, holds a valuable place, accounting for a substantial portion of sales in retail markets. The distribution of wine in France is primarily through supermarkets, which account for over half of sales; this is followed by direct sales at wineries, specialized stores, and a gradually increasing share from e-commerce platforms.

Prominent Figures in the French Wine Landscape

The French wine market features various key players that are cornerstone institutions within the industry. These institutions range from wine producers, regulatory bodies, trade associations, to distribution channels. Below, we'll delve into some of the primary organizations that help shape the contours of the French wine scene.

• International Organisation of Vine and Wine (OIV): The International Organisation of Vine and Wine sets the definition for wine and lays down the standards that govern its production. As an intergovernmental organization, the OIV plays a significant role in creating an international benchmark and ensuring the recognition of wine as a product intimately tied to culture and tradition.
• Comité National des Interprofessions des vins (CNIV): The CNIV plays a vital role in providing market data, which is pivotal for understanding the dynamics and economics of the French wine market. It acts as a collective platform for various wine professions, fostering dialogue and coordination among market actors.
• Ministry of Economy and Ministry of Agriculture: These government entities are responsible for the oversight and development of policies pertinent to the wine industry in France. They ensure the sector's regulations are up-to-date and in line with both national interests and international standards.
• INSEE (National Institute of Statistics and Economic Studies): INSEE provides crucial data and indices such as the producer price index for wine, which is integral for understanding market trends and pricing trajectories in the wine industry.
• Vignoblexport and La Revue du vin de France: These platforms offer insights and analysis relating to exports, market structure, and the performance of the French wine industry, thus informing stakeholders about the current state of the market. Champagne Houses: Renowned for their sparkling wines, Champagne Houses are iconic symbols of France's wine excellence. They encapsulate high-end production and play a substantial role in maintaining France's prestigious international reputation in wine.
• France Agrimer: This public institution supports wine producers and promotes the French wine market. It provides market intelligence and helps in coordinating various initiatives aimed at enhancing the quality of French wines domestically and internationally.
• INAO (National Institute of Origin and Quality): INAO is tasked with regulating agricultural products with protected designations of origin (PDOs) and protected geographical indications (PGIs). It guarantees the authenticity of these appellation products and their adherence to defined standards.
• Vitisphère, Agreste, Agencebio, Les Grappes, and Le Français.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 20/04/2024

Summary and extracts

List of charts

• Size of the global wine market
• Size of the French wine market
• Wine exports
• Main destinations for French wine exports (in value)
• Wine imports
• Breakdown of wine industry players
• Frequency of wine consumption
• Consumer profile
• Profile of the regular consumer
• Search interest for the term "wine
• Perception of wine by the French
• Breakdown of wine production by category
• Wine production
• Average budget for the purchase of a bottle of wine
• Producer price index for wine
• Annual wine consumption per person
• Breakdown of wine sales by distribution channel
• Sales of still wine in supermarkets
• Monthly wine market sales index
• Main nationalities of foreign wine tourists
• Preferred regions for wine tourists