The French wine market, long celebrated as a pillar of the nation’s cultural and economic heritage, has faced a notable decline over the period from August 2023 to August 2024. According to data from the Circana retail panel, sales of still wine have experienced a significant downturn, with a 4.3% drop in volume and a 1.8% decline in value.
This contraction underscores a broader shift in consumer behavior, particularly in the mass retail sector, as French consumers continue to adjust their purchasing habits in response to economic pressures.
Volume and Value: A Concerning Trend
Over the 12-month period, the total volume of still wine sold in France fell from 8.467 million hectolitres in the previous year to 8.1 million hectolitres, a significant reduction that highlights a shrinking market. In monetary terms, this decline has translated into a decrease in total revenue from EUR 4.533 billion to EUR 4.453 billion. The slowdown in inflation, which might have been expected to ease pressure on consumer spending, has not reversed the trend. Instead, it seems to have only moderated the pace of decline, with consumers continuing to cut back on their wine purchases.
Bottles vs. Bag-in-Box (Bib) Formats: A Universal Decline
The decline in sales has affected both traditional bottled wine and the increasingly popular bag-in-box (Bib) format. Bottled wine sales have seen a sharper decrease in volume, with a 4.5% drop, compared to a 3.7% decline in Bib formats. This suggests that while consumers may be looking for more economical options, such as Bib wines, the overall trend is one of reduced consumption across all formats.
Wine Categories: Red Wines Hit Hardest
The downturn has not been uniform across all types of wine. Red wines have been the hardest hit, with a 7.2% reduction in volume, reflecting a significant shift in consumer preferences or purchasing power. Rosé wines have also suffered, albeit to a lesser extent, with a 3.4% drop in volume. White wines have been the most resilient in terms of volume, with only a 0.2% decrease. Interestingly, despite this slight decline in volume, spending on white wines has actually increased by 2.6%. This could indicate a shift towards higher-priced or more premium white wines, even as overall consumption decreases.
In contrast, spending on red and rosé wines has decreased by 4.4% and 1.4%, respectively. These figures suggest that consumers are either opting for cheaper options within these categories or reducing their overall intake.
Market Segments: No Escape from the Downward Trend
No segment of the wine market has been immune to this decline. Wines with a protected designation of origin (AOP) have seen a significant 5.4% drop in volume, indicating that even traditionally prestigious and higher-quality wines are suffering. Wines with a protected geographical indication (PGI) that also mention the grape variety have fared slightly better but still recorded a 4.5% decrease in volume. Standard PGI wines have declined by 2.1%, and wines from France without any geographical indication have experienced the smallest reduction, at 0.3%. This suggests that while there is still demand for more affordable, generic wines, the overall market is shrinking.
Regional Performance: Burgundy Stands Out
Amid the general decline, the Burgundy region has been a rare bright spot, recording a slight increase of 0.8% in the number of bottles sold. This suggests a sustained or even growing interest in Burgundy wines, possibly driven by their international reputation for quality and their perceived value. However, other wine-producing regions have not been as fortunate. Languedoc-Roussillon, one of the largest wine-producing areas in France, has suffered an 8.1% drop in sales, making it one of the hardest-hit regions. Beaujolais and Bordeaux have also seen significant declines, with reductions of 7.9% and 7.1%, respectively.
The South-West region (6.3%), Alsace (6.2%), Provence (4.9%), the Loire Valley (4%), the Rhône Valley (3.9%), and Corsica (3.9%) have all recorded substantial drops in sales, reflecting a widespread decline across almost all of France’s wine-producing areas. This regional analysis further underscores the broad and deep challenges facing the French wine industry.
Conclusion: A Market in Flux
The significant decline in still wine sales in France from August 2023 to August 2024 paints a sobering picture of a market in flux. Despite the easing of inflation, French consumers are purchasing less wine, leading to reductions in both volume and value across almost all categories and regions. The challenges are particularly acute for red wines and wines from traditionally strong regions like Languedoc-Roussillon and Bordeaux.
However, the resilience of white wines and the slight growth in Burgundy offer some hope that certain segments of the market may continue to thrive. As the French wine industry navigates these changes, producers and retailers may need to adapt their strategies to meet shifting consumer preferences and economic realities, whether through focusing on quality, exploring new markets, or innovating with formats like Bib wines. The next year will be critical in determining whether this decline is a temporary dip or part of a longer-term trend that could reshape the French wine landscape.
Source: Vinetur