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International Business Times
International Business Times
World

France Is Facing Its Smallest Wine Harvest In Nearly 70 Years. Falling Demand Is Adding To The Pressure To Producers.

Workers load crates of Pinot Noir grapes onto a trailer during the grape harvest in the vineyards at the Bollinger Champagne House's vineyard in Avenay-Val-d'Or, northeastern France, on August 18, 2026. Due to the rise of temperatures linked to human induced climate change and a scorching hot year for 2026, the grape harvest startsed early this year. (Credit: Getty Images)

France's wine production is heading toward its lowest level in nearly 70 years after a record-hot summer and severe drought damaged vineyards across the country, adding another difficult harvest to an industry already dealing with declining consumption and rising costs.

France's Agriculture Ministry estimates that the country will produce about 33.9 million hectoliters of wine in 2026, equivalent to roughly 4.5 billion bottles. That would be about 6% less than last year and 17% below the average recorded between 2021 and 2025, marking a third consecutive year of historically low production, CNBC reported.

The impact has varied sharply across France's wine regions, with Champagne, Burgundy-Beaujolais, the Loire Valley and Charentes recording significant declines while Bordeaux and Languedoc-Roussillon have recovered somewhat from particularly weak harvests last year.

Champagne has suffered one of the steepest declines, with production estimated at roughly half of last year's level. Burgundy-Beaujolais has also recorded a substantial drop as hot and dry conditions reduced grape yields, while the loss of vineyard acreage has contributed to lower output nationally, Reuters reported earlier this month.

France endured its hottest summer since national measurements began in 1900, with the average temperature across June, July and August reaching 24 degrees Celsius, almost a full degree above the previous record set in 2003. The country experienced 53 heatwave days during the summer, while rainfall was about 40% below normal, Le Monde reported.

Those conditions also pushed harvest schedules forward across several regions. Florent Latour, CEO of Burgundy producer Maison Louis Latour, said his estate began harvesting Aug. 14, its earliest start on record, after months of unusually hot and dry weather.

Latour told CNBC that the midpoint of the estate's harvest has moved forward by roughly three days every decade, amounting to a shift of about a month since the 1930s. Maison Louis Latour maintained the quality of its grapes this year but collected only around half its usual volume, he said.

The shift was not limited to Burgundy, with some vineyards in southern France beginning to pick grapes in mid-July and work on grapes used for sparkling wines starting in Bordeaux and Burgundy in early August, another Le Monde report said.

Prolonged heat and water shortages affected grapes still on the vines, reducing their size and juice content in many areas. Some grapes in the hardest-hit vineyards suffered sun damage, while water stress limited the amount of juice produced by surviving fruit and further reduced yields.

The weather-related losses have arrived during a prolonged contraction in domestic wine consumption, with the share of people in France who drink wine regularly falling sharply over several decades. Producers have also faced weaker demand in some overseas markets and additional trade barriers affecting exports.

Wine consumption in France fell 3.2% by volume in 2025, compared with a 2.7% decline globally, the Le Monde report said. French producers have also been dealing with a 15% U.S. tariff on wine exports, adding another cost for companies selling into one of the industry's major overseas markets.

Lower demand has contributed to excess stocks in some regions even as the country produces less wine overall, prompting growers to reduce the amount of land devoted to grapes. About 20,000 hectares of vines have been uprooted in Bordeaux since 2023 as producers adjust vineyard capacity.

That effort has now extended across the country, with about 4% of France's vines being removed in 2026 under a government program that pays growers 4,000 euros, or roughly $4,600, for every hectare permanently taken out of production, CNBC reported.

Financial support has accompanied the vineyard-removal program, with the French government announcing more than 1 billion euros in emergency assistance for farmers and winegrowers affected by this summer's heatwaves and drought.

The same extreme conditions affected agriculture beyond vineyards, reducing forage availability and damaging crops in several parts of the country. The human toll was also significant, with at least 817 excess deaths recorded during heatwaves between July 27 and Aug. 20.

The economic effects prompted the French government to cut its 2026 growth forecast to 0.5% from 1% earlier in the year. Officials estimated that the heatwaves and drought would reduce annual economic growth by 0.1 percentage point.

Changing growing conditions have also put some of the industry's long-established production rules under greater scrutiny. Chateau Lafleur withdrew its six wines from the Pomerol and broader Bordeaux appellation system last year, saying restrictions covering irrigation, grape varieties and planting densities limited the estate's ability to adjust its vineyards.

Jean-Marie Cardebat, chair of wines and spirits at INSEEC Grande École and an economics professor at the University of Bordeaux, told CNBC that Spain has more extensive irrigation infrastructure after historically dealing with hotter conditions, while irrigation remains much more restricted in French wine production.

France's place among the world's largest wine-producing countries has shifted at the same time. Italy has established a clear lead in production, while this year's smaller French harvest has brought its output closer to Spain's, Cardebat said.

Wine estates are also dealing with higher spending on labor, equipment and changes needed to operate vineyards in hotter conditions. Business failures in France's wine sector tripled between 2019 and 2025, Cardebat told CNBC, while producers have been exploring different packaging and overseas markets as traditional domestic consumption continues to decline.

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