France's Wine Price Rises Slightly to $9.9 per Litre

France Wine Export Price in September 2022

In September 2022, the wine price amounted to $9.9 per litre (FOB, France), with an increase of 3.8% against the previous month. Over the last eight-month period, it increased at an average monthly rate of +1.8%. The most prominent rate of growth was recorded in February 2022 when the average export price increased by 8% against the previous month. The export price peaked at $9.9 per litre in July 2022; afterwards, it flattened through to September 2022.

There were significant differences in the average prices for the major external markets. In September 2022, the country with the highest price was Italy ($17.6 per litre), while the average price for exports to the Netherlands ($3.6 per litre) was amongst the lowest.

From January 2022 to September 2022, the most notable rate of growth in terms of prices was recorded for supplies to Italy (+6.0%), while the prices for the other major destinations experienced more modest paces of growth.

France Wine Export Prices by Type

Prices varied noticeably by the product type; the product with the highest price was sparkling wine ($22.8 per litre), while the average price for exports of wine of fresh grapes (except sparkling wine) stood at $6.9 per litre.

From January 2022 to September 2022, the most notable rate of growth in terms of prices was recorded for the following types: sparkling wine (+1.9%).

France Wine Exports

In September 2022, shipments abroad of wine was finally on the rise to reach 130M litres for the first time since May 2022, thus ending a three-month declining trend. The total export volume increased at an average monthly rate of +3.5% from January 2022 to September 2022; the trend pattern remained consistent, with only minor fluctuations being recorded in certain months. The pace of growth appeared the most rapid in March 2022 when exports increased by 24% month-to-month. Over the period under review, the exports hit record highs at 133M litres in May 2022; however, from June 2022 to September 2022, the exports remained at a lower figure.

In value terms, wine exports skyrocketed to $1.3B (IndexBox estimates) in September 2022. The total export value increased at an average monthly rate of +5.4% from January 2022 to September 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in March 2022 with an increase of 23% against the previous month. Over the period under review, the exports reached the maximum in September 2022.

France Wine Exports by Type

Wine of fresh grapes (except sparkling wine) (106M litres) was the largest type of wine exported from France, with a 81% share of total exports. Moreover, wine of fresh grapes (except sparkling wine) exceeded the volume of the second product type, sparkling wine (25M litres), fourfold.

From January 2022 to September 2022, the average monthly growth rate of the volume of export of wine of fresh grapes (except sparkling wine) stood at +3.1%.

In value terms, the most traded types of wine in France were wine of fresh grapes (except sparkling wine) ($724M) and sparkling wine ($564M).

In terms of the main product categories, sparkling wine, with a CAGR of +7.6%, recorded the highest rates of growth with regard to the value of exports, over the period under review.

France Wine Exports by Country

The United States (16M litres), Germany (16M litres) and the UK (13M litres) were the main destinations of wine exports from France, with a combined 35% share of total exports. the Netherlands, Belgium, China, Canada, Japan, Sweden, Switzerland, Australia, Italy and Denmark lagged somewhat behind, together accounting for a further 45%.

From January 2022 to September 2022, the biggest increases were in the Netherlands (with a CAGR of +9.1%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, the largest markets for wine exported from France were the United States ($273M), the UK ($151M) and Germany ($89M), with a combined 40% share of total exports.

In terms of the main countries of destination, the United States, with a CAGR of +9.8%, recorded the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Factors Affecting Wine Prices

In France, wine prices are determined by a number of factors, including the quality of the vintage, the type of grape used, the region where the wine was produced, and the reputation of the producer. There are also a number of government regulations that affect wine pricing, such as taxes and import duties.

The most important factor in determining the price of a bottle of wine is the quality of the vintage. A good vintage will fetch a higher price than an average or poor one. The second most important factor is the type of grape used. Some grapes are more expensive to grow and produce than others, so wines made from these grapes will be more expensive. The third factor is the region where the wine was produced. Certain regions, such as Bordeaux or Burgundy, are known for producing high-quality wines that command higher prices. Finally, the reputation of the producer can also affect pricing. Producers with a good reputation for making high-quality wines will often be able to charge more for their wines than those who are less well-known.

Source: IndexBox Market Intelligence Platform