Global champagne shipments were down by 9% in 2024 compared to 2023, with consumption marred by political and economic woes, according to the trade association Comité Champagne. 

“As for policies, instability is not a reassuring factor for the consumer, who prefers to hoard rather than spend,” Grégoire Van den Ostende, Bureau du Champagne Benelux director, tells Food Ingredients First. He also represents the Comité Champagne on the Benelux market.

Total shipments in France, wher the sparkling wine is produced in the historic province of the same name, accounted for 118 million bottles — down 7% from the previous year.

Similarly, exports recorded a 10.8% decline last year, with 153 million bottles. However, international sales still remain significantly higher than domestic demand, reinforcing the trend seen in recent times.

Economic and political woes

The champagne sector has experienced extreme climate conditions impacting grape harvests. With rising operational costs, champagne producers are faced with a dual challenge.

“Inflation has caused increases in energy, dry matter and the entire production chain, which has increased the price of champagne,” says Van den Ostende.

Maxime Toubart, president of the Champagne Winegrowers and co-president of the Comité Champagne, agrees that key markets are severely affected.

“Champagne is a true barometer of consumer mood. And this is no time for celebration, with inflation, conflicts worldwide, economic uncertainty and a political wait-and-see attitude in some of the biggest markets, such as France and the US.”

Additionally, consumer preferences are evolving to make way for a focus on health and nutrition, contributing to the dip in alcohol consumption. This decline has led to the proliferation of alternative products, such as no-and-low alcohol wines.

“The wine sector has to realize that the challenge of the crisis is not that we are producing too much wine. It is because we cannot resonate with new consumers and our traditional products do not adapt to drinking trends,” Ignacio Sánchez Recarte, secretary general of the European Committee of Wine Companies, previously told Food Ingredients First.

An enduring industry?

Nevertheless, industry experts see upward trends that could boost the champagne business.

“We notice a growing interest in champagne wines worldwide and in the Benelux, in particular, with new consumers showing more and more interest in education about the beverage,” notes Van den Ostende.

“We have developed a global education offer for champagne and notice, for example, a growing [interest] for the champagne specialist course in Amsterdam.”

Commenting on whether there are plans to target new markets or revitalize declining ones, Van den Ostende says the champagne sector has a global network of offices. Comité Champagne, for example, recently opened a new office in the Nordics and another in Canada.

“This is to ensure the territorial protection of the champagne appellation, against all forms of misappropriation of the appellation and misuse of the word ‘champagne.’ Communication and education about champagne wines, whether with on- and off-trade professionals, hotel schools, oenological circles and the media is also a fundamental mission,” Van den Ostende reveals.

These factors are encouraging for the industry, wher thinking about developing the business sustainably while capturing new markets and consumers in the future will be key to endurance.

“Champagne is a solid, sustainable organizational model that has proved its value, even in the face of adversity, which gives it confidence in the future,” concludes David Chatillon, president of the Champagne Houses and co-president of the Comité Champagne.