Wine - France

The Wine market in France has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: French consumers have a long-standing appreciation for wine, considering it an integral part of their culture and lifestyle. They value the quality, variety, and heritage of wines, and have a preference for locally produced wines. In addition, there is a growing interest in organic and sustainable wines, as consumers become more conscious of their environmental impact and health benefits.

Trends in the market: One of the key trends in the French wine market is the increasing popularity of rosé wines. Rosé has become a fashionable choice among younger consumers, who are attracted to its light and refreshing taste. This trend has led to a rise in the production and consumption of rosé wines, with many wineries expanding their offerings in this category. Another trend is the growing demand for premium wines, as consumers are willing to pay higher prices for wines that are perceived to be of superior quality and craftsmanship. This has created opportunities for winemakers to focus on producing high-end wines and cater to the luxury segment of the market. Additionally, there is a rising interest in natural and low-intervention wines, as consumers seek products that are made with minimal additives and intervention in the winemaking process.

Local special circumstances: France has a unique advantage in the wine market due to its rich history and reputation as a leading producer of fine wines. The country's diverse terroirs, or wine-growing regions, offer a wide range of grape varieties and styles of wine. This diversity allows French winemakers to cater to different consumer preferences and create wines that reflect the characteristics of their specific regions. Furthermore, the French wine industry benefits from a strong domestic market, with a large population of wine enthusiasts and a tradition of wine consumption. This provides a solid foundation for the industry to thrive and innovate.

Underlying macroeconomic factors: Several macroeconomic factors contribute to the development of the wine market in France. Economic stability and increasing disposable incomes have enabled consumers to spend more on premium and higher-priced wines. Tourism also plays a significant role, as France attracts millions of visitors each year who are eager to explore its wine regions and taste local wines. This boosts wine sales and creates opportunities for wineries to promote their products to a global audience. Additionally, government policies and regulations that support the wine industry, such as the promotion of organic farming and the protection of geographical indications, contribute to the growth and sustainability of the market. In conclusion, the Wine market in France is driven by customer preferences for quality and locally produced wines, as well as emerging trends such as the popularity of rosé and premium wines. The country's unique terroirs and strong domestic market provide a solid foundation for the industry to thrive, while macroeconomic factors such as economic stability and tourism further contribute to its development.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.