Agrifrance 2018 Rural Report: Focus on the Online Wine Market in France

Based on a report published by Kedge Business School in June 2017, global wine sales
on the Internet amounted to $9.8 billion in 2016 and exceeded $10 billion in 2017 or
5% of the total market. The market in Asia and in the emerging markets should continue
to progress thanks to the boom in e-commerce. In France, the e-commerce wine industry is nearly mature and is expected to reach €1.4 billion or 9.4% of total wine sales.

Characterised by strong growth (above 30% per year), the French market is currently in
a stabilisation phase. With more than 400 websites in France and a global market value
increasing tenfold in ten years, the e-commerce wine market has become very
competitive. The 2014-15 period was a turning point for online wine sales with growth
decelerating significantly due to the arrival of many new entrants (see graph below).
There is a concentration of merchants which will need to reach critical mass to secure
profitability and business continuity. And there is a high number of websites that have
‘disappeared’ or closed, particularly of first generation players which have failed to
develop their brand, sales and client base sufficiently.