It seems the bubbles have gone flat on the champagne industry thanks to a social and political climate not many want to celebrate.
According to a recent report from Comite Champagne, in the second consecutive year of decline for the industry, 271 million bottles of champagne were shipped from France in 2024, down 9% from 2023.
“Maybe the current global situation, be it geopolitical or macroeconomic, does not lead people to cheer up and to open bottles of Champagne,” said LVMH Chief Financial Officer Jean-Jacques Guiony.
LVMH (EPA: MC) is the parent company to big industry names like Veuve Clicquot, Moët & Chandon and Dom Perignon.
In July 2024 the luxury company reported a 15% decline in the sale of champagne in the first half of the year.
France’s suffering domestic market is also a bad sign for the industry with 118 million bottles sold, down 7% from 2023.
In 2024 France saw two elections, and four governments and as a result is continuing to face political and economic instability coming into the new year.
While Champagne exports make up 56% of all sales, in the last 12 months they dropped by nearly 11%.
The U.S. is the number one international market for champagne valued at €810 million (US$844 million) and faced a year of political uncertainty due to the most recent presidential election.
Maxime Toubart, president of the Syndicat Général des vignerons and co-president of the Comité Champagne said,
“Champagne is a real barometer of the state of mind of consumers. 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.”
However despite unfavourable conditions, co-president David Chatillon believes that the industry has a “solid, sustainable organisational model that has proved its value, even in the face of adversity, which gives it confidence in the future.”
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