Bordeaux, one of the world’s most renowned wine regions and the birthplace of the first AOC vineyard in France, is experiencing a significant decline in wine production.
Once a powerhouse of wine output, the region has long struggled with overproduction, leading to surplus stock in cellars and sustained downward pressure on prices. The imbalance between supply and demand has fueled growing discontent among small and mid-sized vignerons, resulting in protests and calls for structural changes.
A 14% Drop in Production: Causes and Consequences
According to the latest data from France’s customs administration, Bordeaux vignerons produced 3.3 million hectoliters of wine in 2024, a 14% drop compared to 3.8 million hectoliters in 2023. The decline stems largely from a reduction in vineyard surface area, which shrank from 103,000 hectares to 95,000 hectares following two successive uprooting plans. This marks the lowest vineyard coverage since 1985, a sharp contrast to the 125,000 hectares cultivated in the early 2000s.
Beyond vineyard reductions, climatic challenges played a crucial role in lowering yields. Frost, excessive spring rainfall, and fungal diseases such as mildew have negatively impacted grape production, causing the yield per hectare to fall from 37.2 hectoliters in 2023 to 35.1 hectoliters in 2024.
Is the Decline a Necessary Correction?
Despite the drop in production, industry leaders see a silver lining. The Interprofessional Council of Bordeaux Wine (CIVB) believes that a smaller harvest could alleviate the ongoing issue of overproduction, leading to a reduction in surplus stock and potentially driving up bulk wine prices.
Christophe Chateau, director of communications at CIVB, told AFP:
“Last year, we marketed 3.5 million hectoliters but only produced 3.3 million. This means that we are now better aligned with demand, and we may even start drawing on our reserves. As a result, prices could increase.”
While this could bring much-needed relief to struggling producers, it does not resolve the larger structural issues affecting Bordeaux’s wine industry, particularly the challenge of making production profitable for smaller vignerons.
The U.S. Market and the Trump Tariff Factor
While Bordeaux has been adapting to domestic market conditions, external risks loom large—particularly in the form of potential U.S. tariffs on French wine. The United States remains Bordeaux’s most valuable export market, generating €340 million in turnover in 2024. However, if Donald Trump were to reintroduce a 25% tariff on French wines, it could significantly reduce sales, disrupting Bordeaux’s already delicate balance of supply and demand.
Chateau warns that such a move could reverse the progress made in addressing overproduction:
“If Trump were to impose a 25% tax on French wines, sales would fall, and the imbalance would persist.”
A Pivotal Moment for Bordeaux
As Bordeaux navigates this period of transformation, the region faces both challenges and opportunities. On the one hand, the lower production levels may help stabilize the market and improve pricing. On the other hand, external pressures from international trade policies could threaten recovery efforts. The coming months will be crucial in determining whether Bordeaux can turn this decline into a strategic adjustment or if deeper issues within the industry will persist.
Source: WineNews