A new report from the French Association of Wine and Spirits Exporters (FEVS) has revealed a substantial downturn in the country's wine and spirits exports for 2023.
Total export value of €16.2 billion marked a 5.9% decrease from the previous year, though this was still the second-best performance on record despite the notable decline.
More concerning, however, was the significant reduction in volumes, which plummeted by 10.4%.
This downturn reflects the broader challenges faced by the sector, including international tensions and high inflation, which have impacted global consumption patterns.
Gabriel Picard, President of FEVS, underscored the resilience of the sector amidst these challenges but noted the urgent need for adaptation to shifting market demands and consumer preferences.
“This 2023 result, albeit declining, remains the second-best figure in the sector, despite a challenging year… marked by continued international tensions and significant inflation" he said.
The US, traditionally a robust market for French wine and spirits, saw exports fall by 22% to €3.6 billion.
This decline was attributed to wholesalers' efforts to reduce stock levels accumulated during the COVID period, alongside ongoing logistical challenges.
The situation was particularly dire for spirits and sparkling wines, which saw decreases of 37% and 16%, respectively, while still wines remained stable in value.
Exports to the UK slightly increased by 1%, reaching €1.7 billion.
Asia also showed resilience, with overall exports maintaining at €4 billion, driven by burgeoning demand in emerging markets like Malaysia and the Philippines, despite setbacks in China and Japan.
"This decline is a wake‐up call for exporting companies,” said Picard. “It reminds us of the continued need to adapt 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.
He continued: “New markets must be opened, and others must also be prevented from closing, in particular through trade retaliatory measures.
"Sovereignty is not to be self‐sufficient. By exporting all over the world, our companies generate a trade surplus that contributes to the sovereignty of France and its producers.”