France, one of the world’s leading wine-producing nations, is facing mounting economic challenges that are increasingly affecting its wine sector.
According to data released by the Altares Group, the number of corporate bankruptcies in France reached 14,371 in the third quarter of 2025, marking a 5.2% increase compared to the same period last year.
The surge represents one of the highest levels recorded in recent years, with small and medium-sized enterprises (SMEs) accounting for the majority of insolvencies. Larger companies, too, are showing signs of financial stress.
The only encouraging note in the report is that roughly one-third of insolvency cases are now being handled through receivership or safeguard procedures, allowing for the preservation of some jobs among the 52,000 positions at risk during the quarter.
Wine Sector Under Intensified Financial Pressure
The French wine industry, already undergoing structural and market changes, has been particularly affected. Data published by the specialized outlet Vitisphere indicate 257 pending insolvency cases in the wine sector, including both receivership and liquidation proceedings — a 37% increase compared to the previous year.
The most vulnerable businesses are small wineries, which form the backbone of the sector.
- 172 proceedings concern companies with fewer than three employees (+31%)
- 50 proceedings involve wineries with three to five employees (+51%)
These figures reflect the severe strain facing small producers, many of whom continue to struggle with price wars, declining consumption, and, in some regions, vineyard uprooting due to structural imbalances in supply and demand.
Signs of Temporary Stabilization
Despite the troubling trend, the third quarter of 2025 showed a slight improvement compared to the first half of the year. Insolvencies in the wine sector decreased to 43 cases, down from 73 in the second quarter and 76 in the first quarter.
According to Thierry Millon, Research Director at Altares Dun & Bradstreet, this moderation should be interpreted cautiously:
“It’s important to compare third quarters, as the August holidays impact the totals. The third quarter of 2025, compared to the same period in 2024 — which was a particularly difficult summer — shows a 2% decline. While too small to confirm a sustainable recovery, it’s nevertheless an encouraging sign.”
Industry observers note that better financial foresight among winery managers and an increasing tendency to anticipate difficulties have contributed to the slowdown in insolvency filings during the summer months.
Agriculture and Hospitality Also Affected
Beyond the wine industry, other agricultural sectors have also reported significant stress. In the third quarter of 2025, agricultural activities recorded 327 bankruptcies, up 27% year-on-year.
- The hunting, fishing, and forestry segment registered 53 cases (+26%), particularly within forestry support services.
- Crop production saw 164 insolvencies (+20%), driven by weaknesses in agricultural work, horticulture, and cereal production.
- The livestock segment was among the hardest hit, with 108 insolvencies (+42%).
In the public establishments sector, which includes hotels and restaurants, 1,852 insolvencies were reported (+3%). The situation remained relatively stable for hotels but showed mixed results in the restaurant segment: fast food establishments improved (-5%), while traditional restaurants rose by 9%, and bars saw a 10% increase in insolvency cases.
A Cautious Outlook for the Coming Year
While the overall economic landscape in France remains fragile, the slight moderation in insolvency rates during the third quarter offers a glimmer of hope. Nevertheless, the wine sector’s structural vulnerabilities — from small business dependence to shifting consumer behavior — continue to pose long-term challenges.
The coming quarters will be critical for determining whether the current stabilization is temporary or the start of a gradual recovery in one of France’s most emblematic industries.
Source: WineNews