It's all smiles and cheers at the Salon de L'Agriculture in Paris this week, one of the world's major agriculture, food and drink shows. 

French wines, beers and spirits are flowing and the mood is good.

But it's mixed emotions over the outlook for the French wine sector. A glut of wine has led farmers to demand government aid for destroying vineyards. The French government recently revealed it would spend $170 million turning unsold stock into industrial alcohol.

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Drinking habits have also changed. Wine consumption is estimated to have dropped dramatically, especially among young people, and particularly for red wine.

One wine seller told CGTN Europe many have turned to beer or alcohol-free alternatives. Extreme weather, including drought in the summer and late frost in the spring, has also impacted crops.

"The latest catastrophe was last summer's drought," Jean Trocard, owner of Roy-Trocard Wines, told CGTN Europe. "We lost half of our harvest. But we often have other weather-related episodes, like extreme cold in the spring and hail. So every year the global warming effect is seen more and more."

While French wine and spirit exports grew in value in 2022, to around $18 billion, this was due mainly to rising prices. Volumes were down nearly 4 percent.

French wine exports to China, which had been falling in recent years, were severely impacted by COVID-19 restrictions. But with the country fully reopened, optimism is growing.

"We hope for a rebound in our exports to China," Bernard Farges said. He is the president of CNIV, a national committee of wines with Geographical Indicator status. 

These are certified as having been produced from a certain region like Bordeaux and are at the more expensive end of the market. Farges said France should have benefited when China raised taxes on Australian wines, but didn't due to the COVID pandemic.

"Now in 2023, we have a new perspective on the Chinese market. We hope to export again soon," he added.

There were some brights notes for the French wine industry, as exports to the U.S. and Japan increased, while the demand for Champagne remained high in 2022. 326 million bottles were shipped overseas last year, marking the highest annual figure in 15 years.

Wine makers wish they had more to celebrate this week, but are hoping the outlook for 2023 is more rose, rouge or blanc.

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