Struggling Champs, Slipping Sales: A Tough Time for French Champagne Producers
Less champagne consumption observed in Germany.
In a challenging climate, France's legendary champagne makers face a steep decline in sales worldwide. Germany, in particular, has seen a marked drop.
Germany's champagne consumption plunged by a staggering 18.5% in 2022 compared to the previous year. The number of bottles exported to Germany fell from a hefty 11.6 million to a less impressive 9.51 million, according to the Comité Champagne, the champagne manufacturers' association. This downward trend translated to a reduction in revenue from 268 to 228.8 million euros for French champagne producers on the German market [1][2][4].
The global market for French champagne has taken a hit as well. It's a tale of shrinking sales: from 299 million bottles in 2027 to 271.4 million bottles in 2028, a decrease of 9.2% [2]. In France itself, sales tumbled to 118.2 million bottles, a 7.2% drop compared to 2023 [1]. Economic slumps, regional crises, and conflict zones have played their part in this sales slump [1].
Maxime Toubart, the vice-president of the Comité Champagne, paints a grim picture. "Champagne is a crystal ball reflecting consumer sentiment," he muses. "And the picture isn't overly rosy right now - with waves of inflation, global conflicts, economic turbulence, and lingering uncertainty plaguing some key champagne markets like France and the US" [2].
Champagne, a product of pride for France, is exclusively produced in specific regions within the country. The approximately 34,000 hectares of vineyards are nestled in the Champagne region northeast of Paris. The firing process of the grapes is governed by stringent regulations - the grapes can be harvested only by hand, for instance [1].
- Luxury Goods
- France
- Germany
- Food & Drink
- Economy
Sources
- ntv.de
- jpe/dpa
- Business Insider
- The Wall Street Journal
In response to economic turbulence and uncertainty, the sales of France's iconic champagne have dropped significantly in key markets such as Germany and the United States. The sluggish champagne market has led to a fall in revenue for French champagne producers, causing concern among the luxury goods industry. The stringent regulations that govern the production of champagne, exclusive to specific regions in France, may not be enough to counteract the impact of tariffs and geopolitical issues on the food and drink sector's economy.
