The Bordeaux wine sector is confronting one of its most challenging periods in recent decades, marked by sharp economic pressures, shifting consumption patterns, and structural imbalances that threaten the sustainability of many producers.
This outlook was presented by Christophe Chateau, Communications Director of the Bordeaux Wine Interprofessional Council (CIVB), during a conference held on Thursday, November 13, at the InterContinental Bordeaux Hotel. The event was organized by Une Villa et des Vignes, a real estate agency specializing in vineyard properties.
Bulk Wine Prices Below Production Costs
According to Chateau, the price of bulk Bordeaux wine has fallen to approximately EUR 1 per liter, placing it below the price of olive oil and, in some cases, even vinegar. This decline is particularly alarming for generic Bordeaux wines, which are now being sold at levels that do not cover production costs.
Data presented at the conference highlight that the average price for a barrel of Bordeaux red wine in the 2025–2026 vintage is EUR 943, compared with EUR 793 in October. However, the cost of producing a 900-liter barrel is roughly EUR 1,800, resulting in substantial losses for producers and raising concerns about the long-term economic viability of many vineyards.
Falling Consumption and Changing Perceptions
Chateau identifies two major drivers behind the current crisis:
1. A Structural Decline in Wine Consumption
Wine is no longer viewed as a daily staple in France but rather as a discretionary, leisure-oriented product. In times of economic pressure, households find it easier to reduce spending on wine. Between health-related caution and broader lifestyle changes, consumption patterns have shifted significantly.
2. Health Campaigns and Anti-Alcohol Initiatives
National and international health policies—particularly those promoting reduced alcohol intake—have gained traction. Highly visible movements such as Dry January have contributed to reinforcing negative perceptions around alcohol consumption, further affecting sales volumes.
Additional Pressures: Weather, Costs, and Geopolitics
Beyond consumption trends, the sector faces several structural challenges:
- Weather-related events that increase production costs
- Rising inflation affecting labor and inputs
- Geopolitical instability, which complicates export flows and reduces market predictability
Together, these factors are placing unprecedented pressure on producers, many of whom are unable to absorb the escalating costs.
CIVB Strategy: Reducing Supply and Strengthening Promotion
To address the imbalance between production and demand, the CIVB is implementing a strategy that includes:
- Uprooting 20,000 hectares of vineyards over four years
- Enhancing promotional initiatives through institutional campaigns
- Developing educational programs to reconnect consumers with the Bordeaux brand
Chateau emphasized that despite the region’s strong name recognition among French consumers, Bordeaux suffers from a perception problem, especially among some wine critics and specialist retailers in Paris who favor lesser-known appellations.
A Global Crisis Extending Beyond Bordeaux
The Bordeaux downturn is not an isolated case. Chateau referenced similar challenges in Napa Valley, where some growers have chosen to forgo harvesting because production costs exceed market prices. The CIVB anticipates that widespread vineyard reductions worldwide, combined with potential economic recovery, could help restore market equilibrium.
However, a key uncertainty remains: Will consumption decline faster than planted vineyard area? If so, the sector’s difficulties may persist despite supply adjustments.
New Markets and Renewed Partnerships
Looking ahead, Chateau expresses cautious optimism for a medium-term recovery—provided political tensions ease and global economic conditions improve. Emerging markets such as Africa, India, and South America could create new commercial opportunities for Bordeaux producers.
Domestically, Chateau underscores the need to rebuild trust with retailers and restaurateurs, relationships that weakened during the years when Bordeaux prioritized exports to China.
Producers Reshape Their Business Models
Producers like Arnaud Roux-Oulié, owner of Châteaux Carlmagnus in Fronsac, argue that winemakers must adapt to a market where traditional intermediaries play a reduced role. Direct sales, digital visibility, and wine tourism are increasingly essential tools for survival.
Chateau agrees, noting that “good wine is no longer enough.” Modern winegrowers must engage in commerce, marketing, and promotion—roles which, historically, were not part of their core activities.
High-End Wines Remain Stable—For Now
While generic Bordeaux wines are the most affected, premium categories such as the grands crus classés continue to command high prices. Still, Chateau acknowledges that even top-tier producers will need to adjust to evolving market conditions if they expect to maintain sales.
Source: Vinetur