In the aftermath of the tumultuous year of 2023, France's wine and spirits industry witnessed a slight downturn in its export performance, registering a total export value of €16.2bn. This figure represents a decrease of €1bn from the previous year, yet it still stands as the second-best result ever recorded. The data, provided by the Federation of Wine & Spirits Exporters of France (FEVS) and based on customs information, highlights the resilience of the French wine sector amidst challenging economic conditions.
"The year 2023 remains marked by high inflation and a decrease in consumption, primarily due to a reduction in disposable income," stated FEVS President Gabriel Picard. "In this context, the reduction of excess inventory in some markets, notably in the USA, has led to a decline in the volume of wine and spirits exports."
Other countries, other challenges
The overall decline in French wine exports amounted to nearly 3%, with sales totaling approximately €11bn, down from €12.3bn in 2022. According to Business France, the top ten export markets account for almost three-quarters of the export value, showing a mix of gains and losses across different regions. Notably, exports decreased to the United States (€2.2bn, down 8%), the United Kingdom (€1.5bn, down 0.1%), Germany (€844m, down 2%), Belgium (€672m, down 3%), Japan (€665m, down 5%), Canada (€462m, down 11%), the Netherlands (€440m, down 5%), and China (€427m, down 20%). Conversely, France saw an increase in wine exports to Switzerland (€535m, up 4%) and Singapore (€518m, up 10.5%).
France's wine exports faced notable declines in specific markets, with Algeria experiencing a dramatic 85% drop, reflecting a sales figure of approximately €250,000, and the Chinese special administrative region of Macao, where exports plummeted by 72% to about €6.7m. However, neighboring Hong Kong managed to maintain its position at twelfth, with exports amounting to roughly €354m, albeit with a slight decrease of 2.5%. Russian market exports saw a significant reduction of around 52% compared to the previous year, falling to about €7m.
On the brighter side, the biggest percentage gains were observed in Kosovo, with an increase of 280% to approximately €68,000, Bolivia with a 190% rise to about €80,000, and Namibia, located in Southern Africa, with €135,000, marking an increase of approximately 180%.
The volume of French wine exports experienced a more pronounced decline of about 9%to 12.77m hectoliters, down from 14m hectoliters the previous year. Champagne, traditionally a strong export product, showed a volume decrease of around 11.2% to 1.2m hectoliters, though its value remained relatively stable at about €4.2bn, a slight decrease of 0.6%. This brings the French sparkling wine's performance back to pre-COVID pandemic levels.
All categories are declining
All categories experienced declines, with wines carrying a protected geographical indication (AOP in France) generating about €5.3bn despite a sales drop of 4.6%. This category managed to mitigate the impact of an approximately 11% volume decrease through higher selling prices. In contrast, wines with a protected geographical indication (IGP) faced an 11.5% decline in volume and a 7% loss in value. Wines without geographical indication saw a slight decrease of 2% in volume but managed to increase in value by about 7% to €172m.
FEVS President Gabriel Picard commented on the situation, stating to changing consumer and market demands. It also demonstrates how much the sustainability of the export success of wines and spirits requires a strong and long‐lasting support of the public authorities: new markets must be opened, and others must also be prevented from closing, in particular through trade retaliatory measures." PD
