Éric Giraud-Héraud

INRAE Research Director at ISVV Bordeaux Sciences Économiques (BxSE)

Published in "Terre de vins" No. 95 – April 2024

 

What is the economist’s assessment of wine consumption in France?

Over the past sixty years, it has fallen by 70 per cent, from over 120 litres per person per year in the 1960s to less than 40 litres today. This is the result of a whole range of factors that have not really been properly analysed or prioritised. Between changes in dietary habits, unmet sensory expectations, health concerns and the tarnished image of wine, it is difficult to determine the true reasons behind this phenomenon. Since there are as many expert opinions as there are experts on these issues, it is up to research to unpick the situation as thoroughly as possible through precise analyses, even if there is little hope of reliably determining the actual quantities consumed.

Faced with falling consumption, the challenge for the wine industry is not so much to sell more as to promote its wines more effectively.

Is the sector inevitably destined for economic decline?

I don’t believe that, and I’m actually quite optimistic. In economics, what matters isn’t the volume sold but, above all, making a profit! The challenge, therefore, is to increase the value of wines on the markets. To achieve this, it is essential to tackle head-on the environmental aspects and land-use planning of viticulture, which is the precursor to
corporate social responsibility (CSR), a priority issue today. It is about doing good for the sake of doing good. But I would emphasise that it is essential to offer consumers wines of organoleptic quality that meet contemporary expectations, whilst challenging the misconceptions that are still all too widespread within the industry.

What are the key research issues in this field?

The key challenge is, above all, to gain a better understanding of the factors driving value creation. We need to identify the reasons why consumers are willing to increase their ‘willingness to pay’ (WTP) and why they do not reduce it. This issue ties in with the question of building and maintaining a reputation, at the intersection of economics and marketing. To gain a clearer understanding of this WWP, we are setting up experimental markets that analyse value creation, starting with the organoleptic aspect. This criterion carries enormous weight, but environmental labels and claims are becoming increasingly significant. Radical innovations such as disease-resistant grape varieties can also add value, provided the quality is up to standard. Research into these topics is well established and the results are truly interesting. However, explicitly taking into account changing consumption patterns is an issue that has not yet been sufficiently studied, and one that we must address. It gives rise to a wide range of different value propositions, with the implications this entails for marketing strategy.