Bordeaux’s wine production fell to its lowest level in more than three decades in 2024, driven by climate challenges, declining global demand, and strategic supply cuts by winemakers.
Planned Production Cuts Ease Oversupply
According to industry data, Bordeaux’s wine production totaled 3.3 million hectoliters in 2024, a 14% drop from 3.8 million hectoliters in 2023. Beyond frost and other adverse weather conditions, intentional capacity reductions played a major role in the decline.
Faced with a long-term oversupply problem, Bordeaux winemakers have been scaling back production through government-supported reduction programs. By 2024, vineyard acreage in Bordeaux had shrunk to 95,000 hectares, down from 103,000 hectares in 2023.
The push for production cuts began in late 2022, when more than 700 winemakers staged protests, demanding government subsidies to remove surplus vineyards. The industry was grappling with a decline in domestic red wine consumption, stagnating exports, and an oversaturated market. The protests included not only winemakers but also high-ranking officials from the Bordeaux Wine Trade Council (CIVB).
Weak Demand and Declining Exports
Bordeaux’s production cuts are closely tied to falling demand from China. In 2017, China accounted for 20% of Bordeaux’s wine exports, exceeding the 13% share of the entire North American market. However, demand stagnated and later declined, despite a temporary 16% rebound in 2021, when exports to China reached €616 million.
More recent data suggests the United States has now overtaken China as Bordeaux’s largest export market. In 2024, Bordeaux’s wine exports to the U.S. totaled €340 million (approximately $355 million). No official figures were provided for China, but a document reportedly released by French customs and reviewed by Vino Joy News indicated that Bordeaux’s exports to mainland China from January to July 2024 totaled €115 million, ranking behind the U.S. and the U.K., and marking a 9.69% year-on-year decline.
This continued downturn reflects China’s shrinking market share for Bordeaux wines.
Branding Challenges and Market Shifts
Industry experts say Bordeaux’s brand perception and product positioning are key challenges in China.
Zhang Zhonghua, founder of Wine & Spirit Collection, a French wine distributor in Zhejiang and Anhui provinces, believes Bordeaux wines suffer from severe homogenization and a reputation problem caused by counterfeit and imitation products in China, which have led consumers to be wary of the category.
“Entry-level Bordeaux wines are struggling to attract interest, while Southern French wines—offering diverse bottle shapes and a more New World-style taste—are gaining popularity,” he said.
Zhang also noted that Bordeaux wines have become highly price-transparent, making aggressive price cuts more common. “With prices constantly being undercut, even I’m reluctant to sell Bordeaux wines,” he added.
Meanwhile, Li Yajun, General Manager at Shanghai-based Merveille Business, observed a growing polarization in the entry-level Bordeaux segment.
“Generic Bordeaux wines are struggling, but well-branded Bordeaux labels are performing well,” he said. “Some top-brand entry-level Bordeaux wines even sold out last year.”
Despite Bordeaux’s current market challenges, Li believes the region still holds strong consumer appeal due to its winemaking heritage.
Keeping Supply Below Demand
Li sees Bordeaux’s production cuts as a necessary adjustment to global economic and political headwinds. He predicts that Bordeaux’s wine production will continue to decline over the next few years as producers work to keep supply below market demand.
“Excess supply would cause entry-level Bordeaux prices to collapse, destabilizing the entire market,” he warned.
The strategy appears to be working. Industry experts believe that lower production levels will help boost prices and clear excess inventory from previous years.
CIVB spokesperson Christophe Château noted that in 2024, Bordeaux’s sales outpaced production, signaling potential price increases.
“If you sell more than you produce, then you not only meet demand, you can dip into your stocks and, arithmetically, prices will rise,” he told AFP.
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