In the domestic market, sales declined by 7.2% to 118.2 million bottles. That represents the lowest sales rate since 1985.
Exports fared even worse, as they decreased by 10.8% to 153.2 million bottles. Demand for Champagne has not been this weak since 2002, when the world was reeling from the dot-com bubble crash and the 9/11 attacks.
Maxime Toubart, president of the Champagne Syndicat Général des Vignerons (SGV) and co-president of the Comité Champagne, said: ‘Champagne is a true barometer of consumer mood. This is no time for celebration, with inflation and global conflicts taking place, as well as economic and political uncertainty in some of Champagne’s largest markets, such as France and the US.’
Indeed, there was little cause for celebration in France last year, as the government lurched from one political crisis to another.
The turmoil began when President Emmanuel Macron’s party endured a dismal showing at the European Parliament elections. He responded by dissolving the National Assembly and calling snap parliamentary elections in June.
It was a major gamble, which may have been designed to halt the momentum that Marine Le Pen’s far-right National Rally had been building. However, it backfired, as the election did not produce a majority winner.
Instead, the parliamentary election created three rival political clusters. They are roughly equal in size, and each one is incapable of governing alone.
These rival factors have been unable to form a coalition, plunging France into political paralysis. France went through four prime ministers last year, and it is still grappling with the crisis.
The CAC 40, the benchmark French stock market index, fell by 3% last year amid falling demand for luxury goods in markets such as China.
That was a dismal performance when compared to its American counterpart, the S&P 500, which increased by 23%. Germany’s stock market also increased by 18.7%.
Meanwhile, Moody’s downgraded France’s credit rating, citing a ‘materially weaker’ economic outlook.
France can no longer rely on surging exports to make up the shortfall. On a global basis, wine consumption dropped to a 27-year low in 2024, according to the International Organisation of Vine and Wine (OIV).
The OIV blamed inflation, which has dented consumers’ purchasing power, but people are also drinking less for health reasons.
Yet some Champagne producers remain bullish. ‘Champagne is a solid, sustainable organisational model that has proved its value, even in the face of adversity, which reinforces its confidence in the future,’ said David Chatillon, president of the Union des Maison de Champagne and co-president of the Comité Champagne. ‘It’s in less favourable times that we need to prepare for the future, maintain our plans in terms of sustainable development, and attract new markets and new consumers.’
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The post Champagne sales suffered a sharp decline in 2024 appeared first on Decanter.
Source : https://www.decanter.com/wine-news/champagne-sales-suffered-a-sharp-decline-in-2024-548911/
