By Cynthia Anaba
- Champagne sales were down 9.2% in 2024
- The luxury market as a whole has been hard-hit with low sales
At weddings, birthdays, graduation parties, dinners, and even year-end work celebrations, champagne holds an unspoken presence, elevating social gatherings with its celebratory charm. However, in recent times, champagne sales are losing their sparkle as global consumers tighten their belts amid economic and political turmoil. In 2024, the industry experienced a 9.2% decline in sales, with domestic consumption in France–champagne’s backyard dropping by 7.2% to 118.2 million bottles, the lowest since 1985. Exports also suffered, decreasing by 10.8% to 153.2 million bottles.
Why This Matters: The downturn is attributed to high inflation rates, geopolitical conflicts, and economic uncertainties, which have dampened consumer enthusiasm for luxury indulgences like champagne. Maxime Toubart, co-president of the Comité Champagne, noted that champagne serves as a “barometer of consumer mood,” reflecting the current global unease. This trend isn’t isolated to champagne; the broader alcohol market is witnessing a shift. Wine consumption has plummeted by 10.5% between 2017 and 2023, particularly among younger generations favoring healthier and more affordable alternatives. Similarly, spirit sales have faced challenges as consumers prioritize practicality over luxury.
Even though the celebration drink sales may be on a slump, experts in the industry are positive that the sales will bounce back. Afterall, the luxury industry is not exactly having its greatest year. This is a wake-up call to explore other markets and get into practices that guarantee sustainability. Perhaps champagne producers can borrow a leaf from wineries who, in response to changing consumer preferences, are expanding into the non-alcoholic market, projected to soar from $1.21 billion to $2.61 billion by 2031. This pivot aims to cater to health-conscious consumers and sustain the industry amid shifting cultural trends.
What’s Next: Despite the current slump, the champagne market is projected to grow from $7.3 billion in 2023 to $11.9 billion by 2033, registering a CAGR of 5%. This optimistic outlook suggests potential recovery as economic conditions stabilize and consumer confidence returns. Looking forward to another time the world cheers up with champagne!
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