French Wine and Spirits Exports Hit 25-Year Low Amid Trade Tensions
French wine and spirits exports have fallen to their lowest volume in at least 25 years, according to industry group FEVS. The decline is attributed to higher tariffs on shipments to the United States, threats of further hikes up to 200%, and Chinese anti-dumping duties, which have collectively cooled demand and disrupted traditional markets.
Sharp Decline in Export Figures
Total French wine and spirits exports dropped by 3% in volume last year to 168 million cases, marking the lowest level since at least the beginning of the century. In value terms, exports fell 8% to a five-year low of 14.3 billion euros ($17.03 billion). This significant downturn has seen the sector slip from being France's second-largest export sector to third, now trailing behind aerospace and cosmetics as trade tensions intensified globally.
Impact of U.S. and Chinese Tariffs
Higher tariffs on shipments to the United States and looming threats of additional increases have severely impacted demand, particularly in the second half of last year. Sales to the U.S. dropped 21% to 3.0 billion euros, with volumes falling below 30 million cases. FEVS Chair Gabriel Picard noted that the decline in the U.S. market is substantial, and further volume corrections may be necessary in 2026, indicating ongoing uncertainty for a rebound.
Sales to China also suffered, declining 20% to 767 million euros in 2025. Anti-dumping duties sharply curbed shipments of cognac, armagnac, and other wine-based spirits. Picard highlighted that geopolitical tensions between France and China have effectively halted cognac exports to China, emphasizing that while stopping sales happens quickly, rebuilding market presence will be a lengthy process.
Cognac as a Major Casualty
Exports of cognac, the flagship spirit of the French industry, plunged 15% in volume and 24% in value, making it one of the biggest casualties of escalating trade tensions. This decline underscores the vulnerability of premium products to international disputes and economic pressures.
Mixed Performance in Other Markets
Within Europe, wine and spirits exports remained broadly stable at 4.1 billion euros, showing resilience in markets such as the United Kingdom. Despite fiscal pressures, volumes in the UK rose by 3%, indicating some regional strength amid broader challenges.
Champagne exports, which account for 35% of the value of all wine exports, saw a slight increase in volume but fell 4.5% in value. David Chatillon, co-chair of the Comite Champagne, attributed this decline to the sharp rise of the euro against the dollar that began early last year. He expressed hope for a rebound in sales in 2026 but cautioned that it may not be significant due to an unchanged economic environment.
Future Outlook and Potential Relief
Looking ahead, FEVS Chair Gabriel Picard suggested that the sector could benefit from new EU trade deals with the South American Mercosur bloc and India. However, he warned that 2026 could remain difficult without improved market access, highlighting the need for strategic adjustments and international cooperation to navigate ongoing trade challenges.
