French Wine and Spirits Exports Decline in 2024 Amid Geopolitical Tensions

French wine and spirits exports in 2024 show a decline, but the situation may not be as dire as it seems. The Fédération des Exportateurs de Vins & Spiritueux de France (FEVS) reported a 4% drop in export value, totaling €15.6 billion. Gabriel Picard, FEVS president, attributed this to inflation and geopolitical uncertainties, which have affected the premium market. Recent headlines have highlighted these challenges, particularly trade tensions with China, causing concern for the global industry.

Despite the decline, Picard noted that the performance remains the fourth highest in history. Exports have decreased over the past two years from a peak of €17.2 billion in 2022. They fell 5.9% to €16.2 billion in 2023 and dropped again this year. However, the current figures are still above pre-Covid levels, which were €14 billion in 2019. The pandemic caused significant fluctuations, with a 13.9% drop in 2020 and a 28% rebound in 2021.

In 2024, while export value fell, volumes remained stable, decreasing only 0.1%. Wine export volumes increased by 0.7%, though revenues declined by 3%, mainly due to an 8% drop in Champagne sales. Still wines remained steady. In the US, exports are recovering, with a 5% increase to €3.8 billion. Wine exports rose by 8.4% in value, while spirits remained stable. Champagne saw a slight decline in the US, but other sparkling wines surged by 16.5%.

In Asia, markets like Japan saw a 4% decline, while Malaysia and Thailand experienced growth. However, exports to China dropped by 20%, falling below €1 billion. Economic conditions in China, along with an anti-dumping investigation into European brandies, have significantly impacted Cognac sales. This has affected the overall outlook for French spirits, which fell by 6.5% to €4.5 billion, with volumes decreasing by 1.8%.

Exports to the UK remained stable, with a slight 0.7% decline to €1.7 billion. Wine value decreased by 3.9%, but spirits saw a 21% increase. Wine volumes rose by 5.4%, while spirits decreased by 2.5%. Despite the shrinking trade balance for the second year, the wine and spirits sector remains France's third-largest trade surplus.

Picard urged EU and French leaders to address political tensions to improve exports. He emphasized the importance of resolving disputes affecting Cognac and Armagnac, which have persisted for over a year. These issues, if left unresolved, could severely impact the supply chain. Picard called for proper support for the industry, highlighting its role as a key pillar of national sovereignty.