Champagne Sales Lose Fizz in 2023 After Covid-Era Peak

Champagne sales have experienced a downturn in 2023, stepping back from the record-breaking heights achieved in the Covid-19 era. The Comité Champagne, representing over 16,000 winegrowers and 320 Champagne houses, reported a decline in total shipments of bubbly from France, reaching 299 million bottles—a drop of 8.2% compared to 2022.

This decrease signifies a return to the pre-pandemic levels seen in 2019 when 297.3 million bottles were shipped. The peak in 2022 witnessed a remarkable 33% surge, with 325 million bottles making their way to consumers.

Despite the overall decline in shipments, many Champagne houses were resilient due to a focus on selling more expensive labels, enabling them to maintain sales above €6 billion ($6.6 billion) for another year, according to a release from Comité.

Sales also saw a similar slump within France, the largest consumer base for Champagne. Shipments within the country fell by 8.2% to 127 million bottles. The association attributed this decline to France experiencing more significant inflation compared to export markets, impacting household budgets.

David Chatillon, co-president of the association, acknowledged the anticipated decline but expressed optimism for the future, emphasizing the importance of remaining sensitive to the geopolitical context and the global economic situation.

The trend of declining sales is not unique to Champagne, as other alcoholic beverages, including whiskey, have also witnessed a slip in sales and shipments. As home stockpiling eases off with the full reopening of restaurants and bars, consumer behavior in the alcohol market has shifted.

LVMH Moët Hennessy, the largest Champagne maker and owner of premium brands like Moët & Chandon and Dom Pérignon, reflected the impact in an October earnings report for the first nine months of 2023. Its wine and spirits category registered a 7% decline.

The term “Champagne” remains exclusively reserved for wines produced by 16,200 growers on 34,300 hectares northeast of Paris. The region grapples not only with shifting market trends but also with extreme weather events, including high heat and early frosts, affecting wine growers and contributing to the smallest harvest since 1957 in 2021.