The spirits industry worldwide and in France
Overview of the wine sector in France and the world
Wine is the product of fermented grape juice, the origin of which, according to the latest archaeological discoveries in the Caucasus, dates back 6,000 years.
The wild vine was first domesticated in Georgia and Armenia, where its pressed and fermented grape juice quickly became indispensable to mankind. «Wine is more than a drink; it is the consoling balm passed on to the human condition».» extract from the book « World history of French wine »Arnaud Heckmann, ISV trainer for the Bachelor's and Master's classes.
The great Eastern civilisations practised winegrowing, but it was Greece that developed it into an art form around the Mediterranean in 2000 BC, with the establishment of their trading posts, the most important of which was Massalia (Marseille) in 600 BC.
Wine production worldwide and in France
Twenty-five centuries later, France is the jewel in the crown of an industry with a worldwide presence and considerable economic weight.
According to the latest estimates published by the OIV (International Wine Organisation), world wine production in 2021 will be down for the third year running, mainly due to poor weather conditions in the three main wine-producing countries, France, Italy and Spain. With more favourable weather conditions, the countries of the Southern Hemisphere and the United States in particular are doing well, slowing the fall in production to around 250 million hl in 2021.
Production in the Northern Hemisphere
For decades, France, Italy and Spain have been the world's biggest wine producers, sharing top spot from year to year. The unfavourable conditions observed in 2021 have particularly affected these three countries: late frosts, hailstorms, mildew, etc. have contributed to a drop in yields of around 13% overall - although there are some disparities, such as in Germany, Romania and Bulgaria.
Outside the European Union, the largest producer in the Northern Hemisphere remains the USA: while fires limited production in 2021, 2022 is more favourable, with an increase of 6% - despite a water deficit - to reach around 25 million hl.
Russia's production is estimated at 4.5 million hl, while Georgia is forecast to increase production by 22 % to around 2.2 million hl.
The 2021 figures for China have not been released, and remain highly uncertain, at around 6 to 7 million hl.
Production in the Southern Hemisphere
The Southern Hemisphere is also an area of high wine production, and all the wine-producing countries are forecasting a record year in 2021, with an overall increase of 9% on the previous year. In detail, this means
Chile is the big winner in 2021, with an increase of 30% in its volumes, reaching a level not seen for 20 years, i.e. 13.4 million hl.
Argentina is also seeing significant growth in its production, which stands at 12.5 million hl, an increase of 16% compared to 2020.
With 3.6 million hl of wine produced, Brazil has also seen strong growth, the highest since 2008.
Australia is also one of the fastest-growing countries (+30%); in the previous two years, drought and fires had penalised harvests. Production in 2021 is estimated at 14.2 million hl.
The increase in yield is less significant in South Africa, where it represents only 2 %, but has risen for three consecutive years to reach 10 million hl.
The only country in the Southern Hemisphere to suffer a fall in production was New Zealand. Late frosts had an impact on the harvest, reducing production by an estimated 19% to 2.7 million hl.
WINE EXPORTS
After the slowdown in exports caused by the health crisis and US taxes under the Trump administration, wine exports are back on track in terms of both volume and value. In 2021, France exported nearly 145 million cases (12 bottles) or 13 million hl; this represents an increase of 10% on the previous year. Among still wines, the Burgundy and Loire Valley PDOs are well ahead of the pack, with growth of between 16 and 18 %. The PGIs, including Pays d'oc wines, also saw an increase of almost 4%. But the overall champion is champagne, with growth of 35% compared with 2020.
In terms of value, the rise is also significant, with an increase of 27% compared to 2020, with a Ca of 10.5 billion (+ 2.3 billion compared to 2020). Champagne, Bordeaux, Burgundy, the Loire Valley and the Rhône Valley are the main beneficiaries of this price increase.
Market momentum can be seen in most markets, but the rebound is particularly strong in the United States and China.
See our Blog article: RECORD EXPORTS OF FRENCH WINES AND SPIRITS IN 2021!