The French wine industry is facing a critical turning point.
A new report from Safer, France’s land and rural development agency, paints a sobering picture of declining vineyard values across the country. For the first time in years, the once unshakable prestige of Bordeaux is showing clear signs of vulnerability, with vineyard prices falling sharply—dragging down overall transaction values in the sector.
Bordeaux: A Symbol in Crisis
At the heart of the downturn is Bordeaux, a historic region synonymous with fine wine. Once a beacon of consistent demand and premium pricing, Bordeaux now finds itself grappling with a complex crisis. According to Safer, prices for vineyards in Pauillac—a crown jewel of Bordeaux—have dropped by -17%, now valued at EUR 2.5 million per hectare. Margaux follows suit with a -7% decline, bringing average prices to EUR 1.4 million per hectare.
Across the wider Bordeaux area, the average value of a hectare has plunged by -18.4% to EUR 101,100. These declines reflect deeper structural issues: oversupply, waning consumer interest in traditional Bordeaux styles, and the impact of ongoing vine uprooting initiatives aimed at rebalancing the market.
Burgundy and Champagne: Bright Spots Amid the Gloom
While Bordeaux stumbles, Burgundy and Champagne are telling a different story. Burgundy continues its upward trajectory, with vineyard prices in its broader territory—also encompassing Beaujolais, Savoy, and Jura—increasing by +11% to EUR 295,900 per hectare. The region also led in terms of transaction value, accounting for EUR 304 million in sales—a remarkable +81.9% surge compared to 2023.
Champagne, despite two challenging years, remains remarkably resilient. The average price of a vineyard here rose to EUR 1.1 million per hectare (+1.7%). Specific sub-regions such as the Aube saw a +2% increase (EUR 950,000/hectare), while the Côte des Blancs, despite a slight dip of -3%, still commands more than EUR 1.6 million per hectare.
Mixed Fortunes Elsewhere
Elsewhere in France, the picture is more mixed. Prices remained relatively stable in Alsace (-0.7% to EUR 117,000/hectare) and in the Rhône Valley and Provence (-0.5% to EUR 58,700/hectare). However, there were sharp declines in Languedoc-Roussillon (-5.1% to EUR 14,300), the Sud-Ouest (-9.1% to EUR 13,400), and the Loire Valley (-2.2% to EUR 51,000).
The average value of a hectare of vineyard with a protected denomination (AOP/AOC) in France dropped by -1.1% to EUR 176,400. Notably, this decline deepens to -3.9% when Champagne is excluded, underscoring the latter’s exceptional position in the national landscape. Without Champagne, the average falls to just EUR 93,800.
A Market in Rebalancing
While total vineyard transaction volume remained steady in terms of surface area (16,000 hectares, +0.1%), the number of transactions dropped slightly (-1.4% to 8,650), and total transaction value fell by -4.8% to EUR 1.1 billion. Bordeaux's share of that value declined by -39.2% to EUR 184 million, emphasizing the region's ongoing struggles.
Despite these challenges, the high total value of vineyard transactions illustrates the continued economic importance of French viticulture. However, the data also signals a period of transition. Investors, winemakers, and stakeholders will need to adapt to a market that is increasingly segmented—where prestige and resilience are no longer uniformly distributed.
Source: WineNews