The Burgundy wine region continues to navigate the tides of nature and markets with resilience and adaptability.
Following a historically generous 2022 vintage, the 2023-2024 campaign saw conditions stabilize, leading to a remarkable rebound in production, sales, and market confidence. Here's a detailed breakdown of the campaign's highlights, showcasing Bourgogne's enduring ability to balance quality and quantity.
Harvest Trends: From Record-Breaking to Typical Volumes
- 2023 Vintage: Bourgogne experienced its largest harvest ever, with 1.9 million hectoliters—a milestone that significantly replenished stocks. This abundance followed the already impressive 2022 vintage, which was among the top three in the last decade at 1.75 million hectoliters.
- 2024 Harvest Outlook: Initially projected to be significantly below average, the 2024 harvest is expected to reach 1.135 million hectoliters, marking a 13% increase compared to the 2021 harvest. While a 40% drop from the 2023 record, it remains a relief for stakeholders, thanks to robust stock levels.
Market Confidence Boosted by Strong Stock Levels
- As of July 2024, stocks are above the five-year average, driven by the consecutive abundant vintages of 2022 and 2023. With over 3.8 million hectoliters available at the start of the 2024-2025 campaign, this represents the second-highest volume in the last decade, behind the 2018-2019 campaign.
Sales and Transactions: Momentum Across the Board
- Estate Sales: Up 1.6% during the 2023-2024 campaign compared to the previous year, reflecting a steady demand as the need to replenish stocks eased.
- Intra-Regional Transactions: A significant driver of growth, intra-regional transactions saw a 7.5% increase in volume, reaching a record 964,000 hectoliters. Notably, "Grape and Must" transactions accounted for 58% of the total, surpassing the five-year average of 48%.
Bulk vs. Bottled Wine Sales
- Bulk Sales: Represented over 62% of estate sales, reaching 982,000 hectoliters, the second-highest result of the past decade. This segment grew +19% compared to the average of the last five campaigns.
- Bottled Wine Sales: Declined by 1.9%, indicating a normalization after the pandemic-induced surge in demand for premium, bottled wines.
Exports: Bourgogne’s Recovery and New Horizons
- After two quieter years post-2021, exports bounced back in the first seven months of 2024:
- +4.6% in volume and +3.7% in sales compared to the same period in 2023.
- Total export revenue exceeded EUR 900 million, a first in the last decade.
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Appellation Performance:
- Bourgogne Régionale AOCs (White): +21.2% in volume, with revenue boosted by higher-quality offerings.
- Chablis and Petit Chablis: +6.1% in volume, generating over EUR 100 million in sales.
- Crémant de Bourgogne: +12.8% in volume and EUR 36 million in revenue, reflecting its growing global appeal.
Key Markets: Strength in Diversity
Bourgogne's "Big Five" export markets—United States, United Kingdom, Canada, Japan, and now Sweden—accounted for nearly 60% of export volumes. Sweden's entry marks a shift in Bourgogne's strategy, with impressive growth in imports of Chablis and Crémant de Bourgogne. The "outsider" Asian markets, including China and South Korea, also showed renewed interest, with +16% in volume and +15.7% in sales.
Looking Ahead: Challenges and Opportunities
The 2024-2025 campaign begins with a smaller harvest, estimated at just over 1.135 million hectoliters. However, the robust stock levels, strategic diversification of offerings, and revitalized export markets provide a solid foundation. Bourgogne’s ability to navigate market fluctuations and maintain its reputation for quality ensures a bright future for this historic wine region.
Source: BIVB