Sparkling Wines Defy Industry Slump as Global Demand Surges

Sparkling wines are experiencing a period of growth, even as the broader wine industry faces challenges. According to the International Organization of Vine and Wine (OIV), global consumption and production of sparkling wines have nearly doubled since 2002. This trend stands in contrast to the overall decline in wine consumption seen in many markets.

Italy leads the world in sparkling wine production, accounting for about one-third of global output. In 2024, Italian exports of sparkling wines, especially prosecco, increased by 12% in volume compared to the previous year. France is the second-largest producer, with 16% of global production, followed by Germany at 14%. French producers of crémant, a traditional method sparkling wine made outside Champagne, have benefited from this momentum. There are eight crémant appellations across regions such as Alsace, Burgundy, Savoie, and Touraine.

Near Bordeaux, winemaker Dominique Furlan has shifted his focus significantly toward crémant. Five years ago, three-quarters of his production was red wine. Now, half is crémant. Furlan describes crémant as “vital” for his business. He notes that consumers enjoy the product and that it provides a stable income for producers.

The national federation for crémant producers reported a record year in 2024, with more than 114 million bottles sold—a 6% increase over 2023 and a 35% rise since 2020. The industry aims to move upmarket with special cuvées and native grape varieties and to fill the price gap between $10 and $16 per bottle left by champagne’s rising prices. Crémant producers are also targeting export growth, particularly in the United Kingdom and the United States. They believe their pricing can absorb U.S. tariffs imposed during the Trump administration.

Richard Halstead, an analyst at IWSR Drinks Market Analysis, says sparkling wines appeal to a broad audience, especially young adults. He points out that these wines are often associated with celebrations rather than daily consumption, making them less vulnerable to trends toward moderation.

Champagne, long considered the “king of celebration,” has faced recent challenges. While the value of champagne exports continues to grow, volumes have declined due to economic pressures on consumers. Inflation and higher production costs have led many major champagne houses to raise prices significantly. Halstead notes that when prices rise sharply, demand can fall because not everyone can afford champagne as often as before.

In early October, the Champagne Winegrowers’ Union expressed concern about declining sales in major markets. They cited protectionist trade policies and increased competition from other sparkling wines as key factors. The region shipped 271.4 million bottles in 2024—a drop after three years near the 300 million mark—and hopes to stabilize shipments in 2025.

Maxime Toubart, president of the Champagne Winegrowers’ Union, told reporters that Champagne has invested heavily in quality and environmental standards. He said these efforts require significant labor and have been affected by inflation. Toubart emphasized that lowering prices is not the goal; instead, he wants to communicate that Champagne offers strong value for its quality.

Toubart acknowledged competition from drinks like spritz and prosecco but sees it as an opportunity rather than a threat. He believes that consumers who start with these beverages may eventually move on to crémant or even Champagne itself.

As global tastes evolve and economic pressures persist, sparkling wines continue to carve out a strong position in the market—though not all producers benefit equally from this trend.