French wine and spirits exports dropped for the second consecutive year in 2024, impacted by declining demand for premium products, lower prices, a sluggish Chinese market, and potential

U.S. tariffs, the Federation of Wine and Spirits Exporters (FEVS) reported on Tuesday.

Total exports reached €15.6 billion ($17.5 billion), marking a 4% decline from 2023, despite stable shipment volumes of 174 million cases of 12 bottles.

China was the primary driver of this decline, with imports plummeting 20% year-on-year. Smaller markets, including Singapore and Hong Kong, also saw significant decreases of 25% and 12%, respectively. Collectively, these three markets accounted for 90% of the overall drop in export value, with total sales amounting to €2.1 billion.

French spirits bore the brunt of the downturn, with exports falling 6.5% to €4.5 billion. The decline was largely attributed to China's economic slowdown and Beijing’s anti-dumping policies targeting European brandy, particularly French cognac.

Cognac sales experienced an 11% decline in value, though volume dropped by only 1%, supported by restocking in the U.S. and precautionary purchases amid fears of new American tariffs on French wine, FEVS Chairman Gabriel Picard told Reuters ahead of the Wine Paris exhibition. A shift in consumer preference towards younger, more affordable cognac also contributed to the divergence between value and volume.

Despite the overall decline, French wine and spirits shipments to the U.S., France’s largest export market, grew by 5% to €3.8 billion.

In the wine sector, volume increased slightly by 0.7%, but revenue dipped 3% to €10.9 billion, primarily due to an 8% drop in Champagne sales.

Looking ahead, Picard highlighted two major areas of uncertainty: China and the U.S. However, he remained cautiously optimistic, stating, “The worst is never certain.” He noted that despite potential U.S. tariffs, the country’s economic fundamentals remain relatively stable.

Regarding China, Picard acknowledged France’s efforts to protect its Cognac sector but called for “concrete action” ahead of an anticipated visit by Prime Minister François Bayrou aimed at easing trade tensions.

In the Champagne sector, an expected global economic recovery and tighter inventories could support sales in 2025, although exports are unlikely to return to 2023 levels, said David Chatillon, head of the Champagne houses.