French wine and spirits exports experienced a second consecutive year of decline in 2024, as demand for premium products dropped and the industry grappled with lower prices, a softer Chinese market, and potential tariff threats, according to the Federation of Wine and Spirits Exporters (FEVS).
Key Essentials
- Total exports: €15.6 billion ($17.5 billion), a 4% drop from 2023.
- Volume: Steady at 174 million cases, but value hit hard in key markets, particularly in China.
- China’s imports: Down 20%, accounting for the largest portion of the decline. Other markets like Singapore and Hong Kong also saw decreases of 25% and 12%, respectively, making up 90% of the overall drop.
French spirits exports were especially affected, falling 6.5% to €4.5 billion. This decline was largely attributed to China’s economic struggles and Beijing’s anti-dumping measures on European brandy, especially French cognac. Sales of cognac saw an 11% drop in value, although the volume only decreased by 1%, supported by restocking in the United States and precautionary purchases in light of fears of new U.S. tariffs on French wine.
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The gap between the decline in value and the slight drop in volume is believed to reflect a shift toward younger, less expensive cognac. While this trend has impacted the overall value, it has kept volumes relatively stable.
Exports to the United States, which remains France’s largest export market, showed more resilience, with a 5% increase to €3.8 billion. Despite this growth, the wine sector saw a 3% drop in revenue, totaling €10.9 billion, largely driven by an 8% decline in Champagne sales.
Looking ahead, FEVS Chairman Gabriel Picard highlighted two major uncertainties for the upcoming year: the situation in China and the potential impact of U.S. tariffs. While economic fundamentals in the U.S. appear relatively stable, there are concerns about future tax increases. Regarding China, Picard praised efforts to support the Cognac sector but called for “concrete action” to ease trade tensions ahead of a planned visit from Prime Minister François Bayrou.
