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Unveiling the Economic Impact of the French Wine Industry: Deloitte Study Highlights Key Contributions

 

In a groundbreaking study commissioned by Vin & Société and France's national board of appellation and PGI marketing boards, Deloitte has illuminated the substantial economic footprint of the French wine industry.

A Major Employment Driver

The study reveals that in 2022, the French wine industry provided a staggering 440,000 full-time equivalent (FTE) jobs, constituting 2% of the nation's total payroll. Directly, the industry supported 254,000 FTE jobs, encompassing roles in production (125,000 FTE), shipping (44,000 FTE), brokers (500 FTE), super/hypermarkets (13,000 FTE), wine merchants (5,815 FTE), and online sales (279 FTE).

Beyond Direct Employment: The Ripple Effect

Beyond direct roles, the wine sector's impact extends across various sectors of society. Deloitte estimates that the industry generates an additional 71,000 FTE jobs through service providers and suppliers (direct effects), along with 45,000 FTE jobs indirectly through the production environment for intermediary usages related to wine (indirect effects). Moreover, the industry influences an impressive 70,000 FTE jobs stemming from increased household activity linked to wine consumption.

Economic Contributions and Turnover

The financial scope of the French wine industry is equally impressive, with a total turnover of EUR 92 billion. This includes EUR 10 billion from production, EUR 34 billion from trading companies, EUR 7 billion from on-premise venues, EUR 5 billion from multiple grocers, EUR 2 billion from wine merchants, and EUR 253 million from e-commerce. The industry also generates EUR 33 billion in ripple effects across other sectors of the French economy.

Tax Revenues and Fiscal Impact

The study underscores the industry's significant fiscal contributions, amounting to EUR 6.4 billion in tax revenue (including VAT). This includes EUR 254 million from production, EUR 400 million from trading companies, EUR 67 million from multiple grocers, EUR 22 million from wine merchants, and EUR 3 million from e-commerce.

Implications and Future Outlook

Deloitte's comprehensive analysis provides a robust framework for understanding the wine industry's multifaceted contributions to France's economy. It highlights not only its role as a pivotal employment generator but also its substantial financial impact and broader societal benefits. Moving forward, these insights will undoubtedly inform policy decisions, strategic planning, and initiatives aimed at sustaining and enhancing the industry's vitality.

In conclusion, the Deloitte study illuminates the French wine industry's integral position within the national economy, reinforcing its status as a cornerstone of employment, revenue generation, and cultural heritage preservation.

 

Source: Vitisphere

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