French champagne shipments were reduced by nearly 10 per cent last year due to changing habits and the gloomy state of the world, the producers’ association has said.
Economic and political uncertainties have put consumers in crucial markets like the US and home country France in a cheerless mood, making them cut down on the luxury beverage.
“Champagne is a real barometer of the state of mind of consumers,” Maxime Toubart, the president of the Syndicat Général des Vignerons and co-president of the Comité Champagne (Champagne Committee), said in a statement.
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“It is not time to celebrate given inflation, conflicts across the world, economic uncertainties and political wait-and-see in some of the largest champagne markets, such as France and the United States.”
More consumers are opting for more affordable alternatives to champagne, including prosecco, English sparkling wine and crémant. The demand for premium French bubbly has fallen to the lowest levels in over two decades. Cut-price alcoholic drinks have become more competitive in recent years for their quality.
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In addition, Gen Z and millennials in key markets like the US are turning away from alcoholic beverages and opting for mocktails and marijuana. Similarly, baby boomers are spending less on wine after retiring.
Declining shipments
Last year in July, French champagne producers cut in grape harvesting after their sales dropped by more than 15 per cent in the first half of 2024. The year’s shipments were 9.2 per cent less than in 2023, according to the Comité Champagne.
There was a boom in the demand for champagne post-pandemic in 2022 with shipments reaching 326 million. However, the shipments have been declining since then.
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About 299 million bottles were shipped in 2023, a decline of over 8 per cent from the previous year. Last year, the French sales market comprised 118.2 million bottles, down by 7.2 per cent from 2023.
The committee also said that the 2024 harvest in France’s Champagne region had suffered from frosts and wet weather due to climate breakdown which increased mildew fungus attacks in its vineyards.
In December, President Emmanuel Macron appointed François Bayrou, a veteran centrist, as his fourth prime minister in a year as France has struggled with an increasing crisis in a divided parliament.
Champagne exports also decreased last year, with 153.2 million bottles shipped, down nearly 11 per cent when compared to 2023.
“It is in less favourable periods that we must prepare for the future, maintain our environmental [standards] trajectory, conquer new markets and new consumers,” said David Chatillon, co-president of the Comité Champagne.
(With inputs from agencies)