Is French wine in crisis?

French-bashing is trendy, and the media loves to tell stories about the supposed decline of French culinary art. France is the country of gastronomy, “grands crus”, and uncountable cheeses. It is also a country greatly criticized in certain section of the media. “A fall in competitiveness and in wine quality, a decrease in red wine consumption, an intensification of competition” but what is the real situation of the wine sector as a pillar of the French economy?

France is the world's largest wine producer in 2014.

Once again, the wine harvest has been reasonably significant in Europe, meaning that the Old Continent is the world's largest wine producer in 2014.

According to the International Organisation of Vine and Wine the year 2014 was a great one for European wine production.

French wine has regained its place lost 2 years ago against Italy and has become the leader in wine production with a harvest which increased by 10% compared to 2013. On the other hand, Italian wine production has plummeted by 15% due to abundant rains in several regions of Italy. Spanish wine production remains stable, after a significant increase in production for the year 2013.

One man's meat is the other man's poison.

In eastern Europe the weather was particularly dreadful, the harvest was in reduction. Climate hazards have mainly affected countries such as Bulgaria and Rumania. In 2013 France holds its  leadership due to these climate hazards that affected the majority of Europe.

China overtakes France in red wine consumption.

In 2013 China took over from France to become the world's biggest red wine consumer, with 155 million liter cases consumed that is to say an increase of 136% compared to the period 2008.

This huge interest in French wines had an impact on French exports which have been increasing by 3% since 2011. In 2013 France was the biggest supplier to China (45% of China's imports) in front of Australia and Chile. China loves French wines, for them the country of the baguette represents delicacy and quality. But the country is emulating French vineyards by starting its own wine making in some regions. This could be a big threat for France - China could abandon French wine for its own national wines.

A sector in decline.

In 2014, sales plummeted in China by 3.5% in volume. The French government points out the fact that this fall in sales is due to a new orientation led by the Chinese government. Recently the International Vine and Wine Organisation stated: “The drop-off in demand from China comes amid a general decline in the global consumption of wine.” In addition, the organisation blamed the global economic climate to explain this decline. According to recent studies, in 2014 the amount of wine drunk worldwide fell by one percent.

France facing intense global competition.

France is doing well in this sector and has always been one of the market leaders. But the main problem for France is how to make cheaper wines. For instance nowadays you can find a cheap wine from Australia, Argentina or Chile and get the same quality as a French one which would be much more expensive. The purchasing power of consumers tends to decline due to the crisis and they cannot afford to buy expensive French wine anymore. But the AOC system remains a safe purchase for consumers and this system is still envied.

Marie.A-B