Agrifrance report : the US wine market is a new Eldorado for French producers
Agrifrance, a specialist division of BNP Paribas Wealth Management, today publishes its annual report on the agricultural and rural economy, this year including an analysis of the United States wine market, which has since 2013 been the world’s top market for wine consumption.
The main conclusions of the report:
- The world wine market is expected to grow, posting an increase of 3.5% by 2018*, with the United States remaining the main growth driver
- The US has the 5th largest wine-growing area and is the 4th largest market in production terms, behind Italy, France and Spain
- California produces the lion’s share (90%) of wines produced in the US
- French wines remain the undisputed leaders in the US top-end segment and rosé wine market
“The US is both a producer and consumer in the wine market. With 419,000 hectares, the United States boasts the 5th largest wine-producing area in the world and produces 22 million hectolitres, which makes it the world’s 4th largest market in terms of production,” underlined Benoit Léchenault, Head of Agrifrance, adding: “Prospects are very favourable in the United States for French wines, which set a benchmark in the market. Despite stiff competition, French products enjoy a number of advantages.”
Consumption by, and imports into, the USA
Worldwide, one bottle of wine in four is consumed outside its country of origin, but – in contrast to New Zealand, Australia and Chile, countries which export 60% of their wine – the United States consumes 80% of its own production. Since 2013 the US has been the world’s leading wine-drinking country, consuming 31 million hectolitres in 2015, i.e. 13% of global consumption. Next comes France with 11%, followed by Italy and Germany, each with 9%, and China with 7%.
Top-end wines increasingly popular with US consumers; French wine remains a benchmark
While French vineyards are losing ground to new-world producers and French wine-growers continue to face many challenges, France nevertheless remains an undisputed leader in the US top-end segment (premium and ultra-premium) and in the rosé market. The United States is the top customer for France’s Provence region, buying 36% of wine exports from the region.
Italy is still the number one wine supplier to the United States, with 28% of volume and 31% of value. However, France, with only 11.6% of volume, enjoys an excellent image and remains a benchmark for top-end wines. France ranks second on market share by value, with 29%.
* ISWR-Vinexpo 2015 report
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Agrifrance is the specialist rural property division of BNP Paribas Wealth Management, offering clients seeking the right investment and wealth management solutions the benefit of over 40 years of experience in the viticulture, farming, forestry and prestigious homes markets. With its network of recognised professionals, Agrifrance is also able to provide complementary services such as expertise in and management of rural properties.
BNP Paribas Wealth Management (www.wealthmanagement.bnpparibas.com) is a leading global private bank and #1 Private Bank in the Eurozone. Present in three hubs in Europe, Asia and the US, over 6,600 professionals provide a private investor clientele with solutions for optimising and managing their assets. The bank has €344 billion worth of assets under management (as of December 2016).
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