New Technologies and Changing Tastes Drive Transformation in Global Viticulture

The international exhibition SITEVI, dedicated to the vine, wine, fruit, and olive growing sectors, is set to take place in Montpellier, France, from November 25 to 27. Organizers have released a comprehensive dossier outlining the current state and future direction of these industries, which are facing a period of significant transformation. The report highlights the economic, climatic, and social challenges that are forcing producers to rethink their practices and adapt to a rapidly changing environment.

According to SITEVI’s analysis, global wine consumption has been steadily declining, with a 7% drop recorded between 2018 and 2023. This trend is attributed to cultural shifts, generational changes, and growing public health awareness. The American market, a key export destination for European wines and spirits, has imposed a 15% tariff, adding further pressure on producers. In 2024, exports to the U.S. accounted for €2.3 billion, underscoring the importance of this market despite the trade barriers.

Rising production costs, driven by inflation and increased input prices, are also affecting profitability, particularly in the olive sector. At the same time, climate change has become a constant challenge, with producers facing extreme weather events such as late frosts, droughts, hailstorms, and persistent water stress. These conditions are not only reducing yields but also increasing the prevalence of diseases like mildew and flavescence dorée, which require new management strategies.

Consumer preferences are shifting as well. The decline in wine consumption is most pronounced for red wines, with many consumers now interested in low- or no-alcohol alternatives. In the fruit and vegetable sector, household purchase volumes fell by 1.5% in 2024, and while the organic market share has stabilized, overall consumption remains a concern. French olive oil producers face stiff competition from cheaper imports, as domestic production covers only 4% of national consumption.

In response to these pressures, producers are adopting diversification strategies. Many estates are developing new products, such as low-alcohol wines and innovative fermented drinks, to meet changing consumer tastes. Others are combining grapevines with olive or fruit crops to create multiple revenue streams and reduce risk. Some are even branching into agritourism and grape-based cosmetics, reflecting a broader trend toward business model innovation.

This shift toward diversification is driving demand for new types of agricultural equipment. Manufacturers are responding by developing multipurpose machines and specialized tools for olive growing and other crops. The expansion of viticulture into new regions—both within France and internationally—is also creating opportunities for equipment suppliers. Countries like the UK, Scandinavia, and China are emerging as new wine producers, while French regions such as Île-de-France, Brittany, and Normandy are seeing increased vineyard plantings.

Technological innovation is playing a central role in this transformation. The adoption of agricultural technology (AgTech) and artificial intelligence (AI) is helping producers improve efficiency, reduce input use, and adapt to changing conditions. Examples include weeding robots, precision spraying systems, and advanced software for decision support. AI-powered tools can anticipate crop health risks, optimize task scheduling, and improve product quality by tailoring farming methods to specific plots.

However, the successful implementation of these technologies depends on producers’ ability to manage farm data and on the availability of skilled workers who can operate complex systems. The SITEVI Innovation Awards highlight the sector’s focus on practical solutions that improve convenience, product quality, and estate productivity. Notable innovations include remote machine setting adjustments via smartphone, compact electric tractors for sustainable farming, and retractable vineyard covers for weather protection.

The dossier provides detailed statistics on each sector. The French vine-wine industry covers 783,000 hectares and includes 54,000 farms, producing 37 million hectoliters in 2024. It represents 15% of French agricultural output by value. The equipment market supporting this sector consists of 31 businesses with a combined turnover of €670 million, 30% of which comes from exports. Sales data show a sharp increase in specialized harvesting equipment but a decline in general-purpose tractors, indicating a focus on automation and efficiency.

The olive sector remains small but significant, with 40,000 growers (10,000 professional) producing an average of 5,015 tonnes of oil annually. Despite high domestic demand, French production meets only a fraction of consumption needs. The sector is notable for its commitment to organic farming, with 42% of groves certified organic.

France is the fourth largest producer of fruits and vegetables in Europe, with an average annual output of 8 million tonnes from 27,000 vegetable farms and 19,500 fruit farms. However, the sector faces a trade deficit of €5.4 billion in 2023, highlighting the need to boost domestic production and competitiveness.

Collaboration across the industry is seen as essential for navigating these challenges. SITEVI serves as a key platform for innovation and knowledge exchange, featuring over 55 talks and masterclasses, networking events, and showcases for start-ups and new technologies. Partnerships with organizations such as the French Vine and Wine Institute (IFV), France Olive, the Union of French Oenologists, and the Interprofessional Technical Centre for Fruit and Vegetables (CTIFL) reflect the growing integration between wine and fruit sectors.

Regional support is also critical. The Occitanie region has provided more than €10 million to winegrowing organizations since 2016 and plans additional funding and new initiatives starting in September 2025. These efforts include the creation of an economic market observatory to help businesses identify opportunities and plan strategically.

The SITEVI dossier concludes that the vine, wine, olive, and fruit sectors are undergoing a structural realignment driven by economic pressures, climate change, and evolving consumer demands. The industry’s future will depend on its ability to diversify, adopt new technologies, and collaborate across sectors and regions. The upcoming exhibition in Montpellier will provide a forum for stakeholders to share solutions and chart a path forward in this challenging but dynamic environment.