French wine and spirits exports fell for a second consecutive year in 2024, dragged down by weaker demand in China, according to a report released Tuesday by the Fédération des Exportateurs de Vins et Spiritueux de France (FEVS).
Total exports reached €15.56 billion (US$16.8 billion), down 4% from 2023, while export volumes remained steady at 174 million nine-liter cases, a 0.1% drop. The report attributed the decline largely to a slowdown in China, one of France’s key wine and spirits markets.
Wine and Spirits Diverge
The report showed mixed performance across categories.
- Wine exports remained stable in volume, rising 0.7% to 124 million cases, but export value dropped 3% to €10.94 billion ($11.6 billion).
- Spirits saw steeper losses, with export value down 6.5% to €4.5 billion ($4.8 billion) and volume falling 1.8% to 46.6 million cases.
Despite the decline, FEVS President Gabriel Picard emphasized that the numbers still reflect a historically strong performance. “After a year in 2023 marked by a sharp drop in volumes, we now see stabilization at the cost of a reduction in value” observes Gabriel PICARD. “Inflation and geopolitical uncertainties are weakening, at least temporarily, the strong premiumization observed in previous years.” The year 2024 still ranks as the fourth-highest export year in history.
China Slump Hits Exports
Exports to China plunged below €1 billion (US$1.07 billion), a 20% drop, as economic uncertainty and weaker consumer spending weighed on demand.
FEVS cited the European Union’s anti-dumping investigation into brandy imports as a factor, but some Chinese Cognac importers downplayed its impact, saying the probe actually accelerated shipments in early 2024 as producers rushed to stockpile inventory.
“The real issue is China’s shrinking business and consumer spending market,” one importer told us when reached for comments on the decline.
For French wine, competition from Australian imports, weak brand positioning, and price imbalances have added to the challenges. Fang Yi, General Manager of Changsha Puyi Cellar Door, a premium wine distributor in Hunan province, pointed to three key issues: The expensive wines are excellent, the cheap wines are low quality, and the wines that actually sell have razor-thin margins.
He added that Cru Bourgeois, Bordeaux Superieur wines, and fourth- and fifth-growth châteaux offer little profit for distributors, while demand for top Burgundy wines remains high but is often limited by price hikes and supply shortages.
Despite these struggles, France’s strong brand reputation has sustained sales, though the return of Australian wine presents a growing challenge.
U.S. Market Rebounds
In contrast, French wine and spirits exports to the U.S. rose 5% to €3.8 billion ($4 billion), driven by an 8.4% increase in wine sales.
- Champagne exports fell 2.3%, but other sparkling wines surged 16.5%.
- Spirits exports were mostly flat, dipping 0.1%.
FEVS attributed the growth to wholesalers replenishing inventories after a period of excess supply.
UK Market Holds Steady as Spirits Sales Climb
Exports to the United Kingdom remained stable at €1.7 billion ($1.8 billion).
- Wine exports fell 3.9% to €1.4 billion ($1.5 billion).
- Spirits exports jumped 21% to €260 million ($280 million).
- Wine volume rose 5.4%, while spirits volume declined 2.5%.
Asian Markets Show Mixed Results
Beyond China, other Asian markets showed signs of growth.
- Exports to Japan fell 4% to €655 million ($700 million).
- Malaysia saw a 5% increase to €75 million ($80 million).
- Thailand, after scrapping its wine tax, posted an 8% gain to €62 million ($66 million).
Despite these gains, no market comes close to China’s scale, making its downturn a major challenge for French wine and spirits exports.
