Champagne Sales Sink Because People Don’t Want to Celebrate
The global appetite for Champagne is on the decline, with shipments from France falling nearly 10% last year to 271 million bottles. This marks the second consecutive year of reduced sales, as inflation and economic uncertainty temper consumer enthusiasm for celebrations.
According to Comité Champagne, a trade body representing over 16,000 winegrowers and 320 Champagne houses, the downturn is part of a broader malaise affecting luxury goods and alcoholic beverages. Maxime Toubart, co-president of the organization, cited inflation, global conflicts, and political uncertainty in major markets such as the U.S. and France as key contributors to the slump.
“It’s no time for celebration,” Toubart said, encapsulating the somber mood surrounding Champagne’s declining fortunes.
French Market and Global Trends
Domestically, Champagne sales in France fell by 7%, down to 118 million bottles, as the country grapples with economic and political instability, including the aftermath of a snap election that resulted in a hung parliament.
Global Champagne leader LVMH highlighted the downturn earlier this year, reporting a 15% drop in Champagne sales for the first half of 2024. Jean-Jacques Guiony, LVMH’s Chief Financial Officer, connected the decline to the current geopolitical and economic climate, which he suggested has dimmed consumers’ inclination to celebrate.
“Champagne is tied to celebration and happiness,” Guiony said. “But the world’s circumstances right now don’t lend themselves to popping bottles.”
Adapting to Challenges
Despite the setbacks, Comité Champagne’s other co-president, David Chatillon, expressed optimism about the industry’s resilience, calling it a “solid, sustainable model” capable of weathering adversity.
In response to shifting consumer preferences, some Champagne houses, including LVMH, are diversifying their offerings. LVMH recently entered the non-alcoholic sparkling wine market with an investment in French Bloom, signaling a pivot toward health-conscious consumers.
Environmental factors are also playing a role in the industry’s challenges. Extreme weather conditions, such as heatwaves and early frosts, have led to historically low harvests, with 2021 being the smallest yield since 1957. To address these issues, Champagne producers like Telmont are adopting eco-friendly farming practices, aiming to appeal to environmentally conscious buyers.
The Road Ahead
As the Champagne industry adjusts to evolving market conditions and consumer sentiment, its ability to innovate and adapt will determine its long-term viability. While the celebratory spirit may be subdued for now, producers remain hopeful that brighter days—and higher sales—lie ahead.
