Dipping Demand: French Wine and Spirits Exports Decline Amid Market Challenges

French wine and spirits exports saw a second consecutive year of decline in 2024, primarily due to decreased demand for premium products. Challenges such as China's softer market, tariff threats, and a shift towards cheaper cognac products contributed to a 4% fall, totaling 15.6 billion euros.

French wine and spirits exports fell for a second consecutive year in 2024, hit by weaker demand for premium vintages as the industry grapples with lower prices, a softer Chinese market, and tariff threats, industry group FEVS said on Tuesday.

Exports of French wines and spirits totaled 15.6 billion euros ($17.5 billion) last year, a 4% decline from 2023, despite stable volumes at 174 million cases of 12 bottles, the Federation of Wine and Spirits Exporters said. China led the drop in value, with its imports down 20% year-on-year, while smaller markets Singapore and Hong Kong also recorded falls of 25% and 12% respectively. With exports totaling 2.1 billion euros, the three accounted for 90% of last year's fall.

French spirits exports were hardest hit last year, falling 6.5% to 4.5 billion euros, largely due to China's economic struggles and Beijing's anti-dumping measures on European brandy, chiefly French cognac. Cognac sales dropped 11% in value. However, volume dipped just 1%, supported by restocking in the United States and precautionary purchases amid fears of new U.S. tariffs on French wine, FEVS Chairman Gabriel Picard told Reuters.