The burgundy wine market - France (2023)

The global wine market, with a valuation of $489.3 billion in 2021, is projected to grow at a 6.1% CAGR from 2022 to 2030. European wines dominate the sector, accounting for 45% of worldwide sales. Burgundy, a prime region in France, witnessed a surge in demand, with exports growing by 12.6% in 2022 compared to the previous year, although volumes dipped by 10.2%. The region, known for its quality wines, predominantly white (60%) and red (30%), faces a challenge with younger consumers showing reduced interest, especially in red wines like Bordeaux, which saw significant consumption decreases (7% drop between 2011 and 2021).

Burgundy wine production plays a significant economic role, contributing 2.8% to the regional GDP and accounting for 7% of employment. Despite representing only 4% of French vineyards, production reached 205.8 million bottles in 2022, with nearly half exported, generating significant value (€1.1 billion) given its 2.9% share of the global wine trade. Internally, the French market saw 76% wine purchases in supermarkets, and Burgundy wines maintained a strong preference at 36%.

The industry is subject to stringent regulations pertaining to labeling and exporting, ensuring authenticity and quality control. Burgundy remains a sought-after region, with wines like the Leroy Musigny 2006 auctioned for €33,000, and the export market continues to demand high prices, underscoring the region's prestigious standing in the global market.

Evolving French Market for Burgundy Wines: A Detailed Analysis

The French market has historically maintained an intimate connection with its wines, and Burgundy wines, known for their distinction and quality, represent a significant portion of this cultural heritage. Wine consumption in France is deeply embedded within its culture, and despite facing a myriad of challenges such as US tariffs, Brexit complications, the global pandemic, and changing internal consumer habits, the industry has shown resilience. The wine market is expected to have surpassed the threshold of between 30 and 40 billion euros in 2021, illustrating the sector's robustness and importance within the French economy.

Burgundy wines, which are strictly French in terms of origin, have approximately half of their production consumed within the national borders. In terms of volume, an estimated 205.8 million bottles made their way to various distribution channels in 2022, with an overall value amounting to 2 billion euros. It is crucial to note that the domestic market holds a substantial volume share of between 50 and 60 percent in bottle sales, adding up to between 100 and 120 million bottles.

When it comes to value, the French market's share is slightly less prominent, accounting for nearly half of the total sales, which is between 0.8 and 1 billion euros. Demand in the French market is experiencing a transformative phase. Younger consumers are gravitating away from wine, with only between 25 and 30 percent expressing a preference for wine over other beverages. Red wine consumption is particularly affected by this trend, showcasing a downward trend in its dominance.

White and rosé wines are gaining traction, finding a special place during apéritif times and in settings that value lighter and fresher options. This shift is seen impacting regions like Bordeaux, with sales dropping significantly—highlighting that a change in consumption habits is leading towards moderation.

Supermarkets remain the primary point of purchase for wine, with between 75 and 80 percent of French people indicating this preference. The region of origin holds significant sway in the choice of wine, right after price considerations, indicating a strong regional loyalty and recognition of quality associated with specific appellations.

Regarding grape variety, Chardonnay and Pinot Noir are the important players for white and red wines, respectively.

Key Players Shaping the Burgundy Wine Market Landscape

The Burgundy wine market is a complex system with numerous influential entities contributing to its unique dynamism. The region itself is a tapestry of renowned winegrowers, cooperative wineries, merchants, and specialist retailers who continue to shape its legacy, maintain its esteemed reputation, and meet the diverse preferences of wine aficionados.

• Winegrowers

At the forefront of the Burgundy wine landscape are the distinguished winegrowers:

• Domaine de la Romanée Conti stands as a beacon of prestige, its name synonymous with exclusivity and exceptional quality in the world of fine wines.
• Maison Joseph Drouhin, another major player, has a rich history and dedication to producing quality wines that encapsulate the heart of Burgundy's terroir.
• Maison Jean Loron and Maison M. Chapoutier also contribute significantly to the wine production of the region, bringing traditional expertise and innovative methods to their vineyards and bottling processes.

• Cooperative Wineries

• Wine cooperatives are critical components of the Burgundy wine sector, with Cave des Vignerons de Mancey, Tournus and Les Vignerons d'Igé allowing local winegrowers to pool their resources for production and distribution.
• Similarly, Cave Bailly Lapierre, Cave Henry de Vezelay, and Cave des Grands Crus Blancs play an important role in bolstering the strength of Burgundy wines through their collective efforts in winemaking and marketing.

• Merchants and Negociants

Moving along the value chain, we encounter merchants who serve as vital intermediaries between winegrowers and consumers. Les Grands Chais de France is one of these heavyweights, acting as both a producer and distributor with an extensive portfolio that navigates across market segments. Their influence not only resides internally but also stretches across global markets where they export a significant quantity of wine.

• Specialist Retailers and Pure Players

Specialist retailers like Nicolas and wine merchant societies such as Caves de Rauzan offer curated wine selections and expert guidance to a discerning clientele. Moreover, Cavavin and Pure Player Inter Caves diversify the distribution channels with their physical stores and digital platforms, making Burgundy wines accessible to a broader audience.

• Supermarkets and Hypermarkets

Not to be overlooked, supermarkets like Carrefour France and the Auchan Group are critical in making Burgundy wines widely available. 

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 15/07/2023

Summary and extracts

List of charts presented in this market study

• World wine market
• Main export markets for Burgundy wines
• French wine consumption frequency
• France's favorite types of wine
• Types of wine preferred by the French, by wine-growing region
• Share of wine consumed by age group
• Effects of not drinking Bordeaux red wines between €3 and €5
• Where to buy wine
• Wine selection criteria
• Breakdown of Burgundy wines, by type of wine
• Area in production by appellation group
• Breakdown of production by appellation group
• Distribution of Burgundy wine by volume
• Distribution of Burgundy wine by value
• Distribution of grape varieties in the Burgundy vineyards
• Distribution of grape varieties in the Burgundy vineyards - White wines
• Distribution of grape varieties in the Burgundy vineyards - Red wines
• Distribution of Burgundy vineyard appellations
• Size of the French wine market
• French market share of Burgundy wine sales by volume
• Market share of Burgundy wine sales by value