French are known to produce authentic wines made significantly by family businesses. But the French government is planning to uproot 30,000 hAs of the country’s vineyards due to the shrinkage in demand and has submitted a €120 million plan (over Rs. 1190 Cr) charted out by the Nouvelle-Aquitaine region and the Conseil Interprofessionnel du vin de Bordeaux (CIVB),  representing about 3.5% of the total vine surface area of 800,000 hAs. The Ministry of Agriculture aims to expand the uprooting plan to as much as 100,000 hAs.

Apart from the trends, global warming is also a factor for such actions. According to a study, if temperatures continue to increase, these same vineyards that have benefited from a temperature rise could face drought, which will be detrimental to their crops.

France has witnessed a significant decrease in the national and international demand for wines. French citizens drank 120 liters of wine on average a year in the 1960s which has now dropped to 40 liters. In the last 60 years, wine consumption has reduced by 70% and has further reduced by 15% in the last three years, according to the government institution FranceAgriMer.

In the mid-19th century, French adults drank a bottle of wine a day, In the 1950s, eight-year-olds were served a small glass of wine with lunch in primary school canteens. However, drinking wine is no longer in fashion in France partly due to improved quality of water and partly their changing habits. By 2023, the annual quantity drunk by the French each year had fallen 50% from 46 to 24 million hL (one hL is 100 liters). This drop has been even more pronounced since 2010, falling by almost 2% annually; in supermarkets, it fell by even 3% every year. Red wine is suffering in particular, with sales falling from 5.1 million to 3.5 million hL between 2017 and 2023. Whites are holding steady and Rosés are declining less,

Wine drinking has also fallen because of their love for apéro, or apéritif. The ritualistic pre-dinner drink has gradually changed to a cocktail or a spirit with olives.  Older people are still more likely to drink wine than younger generations, who are anyway drinking less. In 2002, 4.5% of French 17-year-olds had never tasted alcohol, but by 2020, that figure rose to 20%. 

The French also turned to exports and by 2023, the French exports of both wine and champagne achieved an impressive €11.2 billion. However, a cooling off in the Chinese economy caused a big drop. Sales to the U.S. are also down.  A Report by the EU Commission in 2023 forecasts a further decline of 7% or more in production and consumption in Europe by 2035. 

The uprooting of vineyards will result in diversifying into other crops to reduce some of the oversupply. The government hopes to fund through the EU in Brussels to pay French winegrowers to pull up about 10% of vines in the Gironde region.

In the short term, smaller holdings will perhaps merge and consolidate into larger vineyards to survive. In the long term, a more sustainable solution needs to be found for one of France’s best-known industries, according to Fortune.com.

Subhash Arora