 "Champagne sales decline: Have people stopped celebrating?")
The sparkling allure of Champagne appears to be losing its fizz as global sales of the luxury beverage dip for the second consecutive year.
According to recent data from the Comité Champagne, the organisation that represents over 16,000 winegrowers and 320 Champagne houses, the total shipments of Champagne from France fell by nearly 10 per cent in 2024.
This drop marks the lowest sales figures for the iconic drink in over two decades, reflecting shifting consumer behaviours and broader global uncertainties.
What is behind the decline?
The sharp decline in Champagne sales, both domestically and internationally, is largely attributed to a mix of economic anxiety, political instability, and changing consumer preferences.
Maxime Toubart, co-president of Comité Champagne, remarked, “Champagne is a real barometer of the state of mind of consumers. It is not time for celebration 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.”
In France, where Champagne holds its proud heritage, sales fell by 7.2 per cent in 2024, with only 118.2 million bottles sold.
The decline in French demand was largely attributed to the “gloom” in the nation, exacerbated by political turmoil. France’s recent political crises, including a snap election and a divided parliament, contributed to a subdued consumer mood.
Across the Atlantic, Champagne sales in the United States also saw a marked reduction. These declines reflect a broader trend where consumers are opting for more affordable alternatives like prosecco, English sparkling wine, and crémant, which have gained quality and popularity in recent years.
Younger generations, particularly Gen Z and millennials, are also turning away from alcohol in favour of non-alcoholic beverages and lifestyle choices such as mocktails and marijuana.
Rise of cheaper alternatives
The rise of cheaper alternatives has put additional pressure on Champagne producers. While Champagne’s premium status has long made it a symbol of celebration and luxury, products like prosecco have grown in popularity, offering a more budget-friendly option without sacrificing quality.
These changes in consumer behaviour reflect broader shifts in global drinking habits. “Champagne is quite linked with celebration, happiness, et cetera,” said Jean-Jacques Guiony, CFO of LVMH, the world’s largest Champagne producer. He further noted that “maybe the current global situation… does not lead people to cheer up and to open bottles of Champagne.”
Climate change affects production
In addition to changing preferences, Champagne’s environmental challenges are also taking a toll on production. The 2024 harvest faced setbacks due to extreme weather events, including frosts and heavy rainfall, which worsened mildew attacks on the vines.
These weather issues are part of a wider trend in the Champagne region, where climate change has made growing conditions increasingly unpredictable. The 2024 harvest, in particular, was hit hard, contributing to an overall decrease in production.
Political and economic crisis
The political instability in France has further compounded the problem, as ongoing uncertainty has left many consumers feeling less inclined to celebrate. Last year, the French government struggled through multiple crises, including a divisive election result and a series of political reshuffles that led to four different prime ministers in a single year.
These political challenges, combined with economic pressures such as inflation and growing pessimism, have left the nation in a state of suspended celebration.
This somber atmosphere is mirrored in Champagne’s global exports, which dropped by 10.8 per cent to 153.2 million bottles in 2024. Exports have faced the same constraints as domestic sales, as key international markets like the US and China experience fluctuating demand for luxury goods.
The international outlook has contributed to a broader decline in wine consumption, with figures from the International Organisation of Vine and Wine (OIV) showing that global wine consumption is at its lowest in 27 years.
What action can the Champagne industry take?
Despite the challenges, the Champagne industry remains resilient. Producers are focusing on sustainability efforts to attract environmentally-conscious consumers.
Champagne houses, like Telmont, are shifting toward greener farming practices in an effort to adapt to both climate change and consumer expectations.
The Comité Champagne remains optimistic about the future, with co-president David Chatillon, quoted by CNN, stating, “It is in less favourable periods that we must prepare for the future, maintain our environmental trajectory, conquer new markets and new consumers.”
The industry’s ability to adapt to new challenges, including sustainable production methods and changing consumer demands, will be key in determining whether this iconic beverage can regain its celebratory status in the years to come.
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