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This paper surveys the current features and the current trends of the French wine industry, which, while still leading in terms of both quantity and quality, is facing increasing and global competition in international wine markets. In terms of long-term trends, the French wine supply is characterised by a strong shift towards increased quality. Ro ughly speaking, it can be concluded that the markets of the best quality wines, such as the best wines with Appellation d'Origine Controlee (AOC) in Bordeaux, Burgundy and other areas, are expanding. On the contrary, in the lower quality brackets (Vins ordinaires or ordinary table wines), the market is receding. Moreover, wines of intermediate but still quite good quality such as Vins de Pays (country wines) and Vins de Cepage (variety-denominated wines) are also expanding, thus adjusting to international competition, and to the trends of demand on international markets. An econometric application, focused on the demand for wines with Appellation d'Origine Controlee (AOC) and ordinary wines, is carried out, yielding statistically significant results. Our application illustrates the reality of the shift towards higher quality of French wines, as reflected in consumption patterns.
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