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French wine and spirits exporters reported a sharp downturn in 2025, with total exports falling to the lowest volume seen since the late 1990s. Industry data show exports down 3% in volume to 168 million nine-liter cases, and down 8% in value to €14.3 billion. This reverses the record peak of €17.2 billion in 2022. US and Chinese trade barriers were the dominant factors: higher US tariffs and threats of even steeper levies pushed American demand down, while anti-dumping duties in China choked off key spirit shipments. A strong euro further raised prices for foreign buyers. In real terms, industry analysts say this represents a “perfect storm” of headwinds, and the outlook for 2026 remains challenging without new market access initiatives.
Key 2025 export figures (per FEVS/Reuter data):
These declines follow two years of contraction after Covid-era highs. Industry leaders note that even the reduced 2025 totals rank only as the fourth-highest on record, but the speed of the recent fall is striking. Gabriel Picard, head of French wine exports (FEVS), warned that an additional “volume correction” may lie ahead in 2026 unless trade frictions ease.
US tariffs and market response: The US - France’s largest overseas wine market - was hit by an escalation of retaliatory duties on French wine and spirits in 2024-25. After 10-15% tariffs in 2024, new 25% levies took effect in summer 2025, affecting high-end and mass-market products alike. As a result, American imports of French alcohol declined sharply. In 2025, U.S. revenue for French exporters fell 21% to roughly €3.0 bn. Industry figures report that even as brands deeply discounted prices to fight back, demand remained weak: fourth-quarter exports to the US were down ~40-45% year-on-year. By mid-2025 distributors were clearing stockpile, leaving fewer sales opportunities. FEVS observers note that long-standing consumer loyalty is slowly eroding - “there is a real decline in the United States,” said Picard, and any recovery may take time.
Chinese import duties: In China, French exports were also battered by policy. Beijing’s anti-dumping duties on cognac, armagnac and certain wine spirits - in place since 2020 and still elevated - knocked 20% off total French spirits sales to China (€767 m in 2025). Cognac suffered disproportionately: sales plunged 15% by volume and 24% by value. Industry leaders described Beijing’s actions as effectively ending the cognac boom in China for now, meaning that rebuilding market share may require years of effort. (By contrast, small growth in other Chinese spirits or entry-level wine has not made up this gap.)
Currency impact: The euro’s strength in 2025 added to the pain. A rising EUR/USD made French wine pricier abroad, undercutting premiumization gains from recent years. For example, Champagne exports (roughly 35% of France’s wine export value) saw a slight volume rise, but still lost 4.5% of value as revenues were squeezed by a higher euro. Similarly, export prices of fine wines and spirits were pushed down: official data show that between mid-2024 and mid-2025, the average export price of Burgundy wine to the US fell about 19% (and Cognac by 23%), as producers traded margin for volume. In short, French brands had to cut prices just to stay competitive, eroding returns.
Domestic trends: While the export slowdown dominates headlines, underlying production factors also play a role. After two drought-hit vintages, French wine output in 2025 remained far below normal. Some producers faced inventory shortages, though many had built reserves. Regardless, global demand was soft. Both OECD and industry reports indicate global wine consumption is nearly flat and premium wine sales in major markets are under pressure. Thus French brands were caught between limited supply and weak demand, making volume wins difficult even in resilient markets.
Within the EU, French alcohol exports held up better than elsewhere. Total EU-bound exports remained around €4.1 billion. Notably, the UK market showed resilience: despite Brexit-related cost pressures and high inflation, French wine and spirits volumes into Britain actually rose ~3% in 2025. This reflects sustained British appetite for Champagne, Bordeaux and cognac. Indeed, Champagne proved a rare bright spot: volume edged higher, as demand for bubbly stayed strong across the continent and in new markets.
Image: Bottles of Champagne are displayed in a Paris wine shop. France’s Champagne (roughly 35% of its wine export value) saw 2025 shipments climb slightly in volume. However, a strong euro pushed revenues down by about 4.5%. At the same time, price competition in Europe is intensifying. Anecdotally, bulk wine prices in markets like Germany and the Nordics are pressured as producers globally vie for shelf space. The combination of low-margin bulk sales and surging costs of transport or packaging suggests EU wholesalers of French wine have had to negotiate tougher. Nevertheless, brands with a premium edge and strong marketing continue to find buyers, which is why the overall EU performance looks flat rather than in freefall.
The US remains by far the biggest export market in value for French wines and spirits, so its downturn hit hardest. Beyond the 21% value drop noted above, FEVS reported that export volumes to the US fell to under 30 million cases in 2025, down sharply from mid-2024 levels. The clearest damage was in cognac and Armagnac - sales of these spirts almost halted, and even top Cognac houses saw double-digit percentage declines. Premium still wines (Bordeaux, Champagne) were also hit by distributor destocking and rising domestic competition (craft spirits, prosery consumer trends). Marketing experts note that with American consumers trading down on wine amidst higher living costs, French brands lost shelf prominence to local and New World wines that escaped tariffs. FEVS chair Gabriel Picard warned that a rebound in the US will likely be slow - “the volume correction may not have been sufficient,” he said, and “perhaps we will see another volume correction in 2026”. This implies that companies reliant on the US should remain cautious in 2026 strategy and inventory planning.
Outside China, some Asian markets offered modest positives. Japan and South Korea remained flat or down slightly, reflecting ongoing moderation after China’s reopening surge. However, other Asian markets - notably Vietnam and the Philippines - registered solid growth (double digits in value). South Africa was a standout: exports jumped 22% to €182 m. These countries were seeing a growing middle class and interest in foreign wine, even as Europe’s export growth stalled. A handful of high-growth specialists reported particularly strong orders from these regions. While they represent small shares today, these gains suggest routes for diversification. Industry analysts recommend French producers deepen relationships with importers in Southeast Asia and Africa to hedge against Chinese/US market risks.
Cognac is emblematic of the export slump. Once booming in Asia and the US, it is now “one of the biggest casualties of escalating trade tensions”. In 2025, cognac exports were down ~15% in volume and nearly 24% in value. This loss of revenue is especially painful because cognac accounts for a large slice of France’s spirits income. The graphic at left illustrates how deeply cognac has been impacted.
Image: A distillery worker pours Cognac at the Remy Martin facility. Cognac exports plunged in 2025 as Chinese anti-dumping duties and US tariffs took effect. Producers warn China’s restrictions have “marked the end of cognac in China” for now, meaning years may be needed to rebuild that market. Sales of other French spirits (Armagnac, liqueurs, vodka, etc.) were also down, though much of the decline centered on China and the US. In contrast, exports of wine-based beverages (except cognac) held steadier - red and white wine volumes fell only a few percent overall. Premium still wines have loyal followings in various markets, cushioning losses. Additionally, sparkling wines (Crémant, Champagnes) saw stable or slightly higher shipments to EU and North America, although at lower average prices.
Industry leaders say there is no quick fix on the horizon. France’s trade association notes that new EU trade agreements with India and Mercosur (South America) might help over time, but these deals will only lower tariffs gradually and benefits will take years to materialize. In the meantime, 2026 is forecast to remain tough: elevated duties on exports are not expected to disappear soon, and changing geopolitical relations (e.g. any future US-China pact) are speculative. FEVS Chair Picard cautioned that without improved market access, the sector will continue to face headwinds. Similarly, Champagne regulators note they “hope to see a rebound in sales in 2026” but expect it to be limited given the unchanged environment.
For French brand owners and C-suite marketing leaders, these trends imply a need to recalibrate strategy. In practical terms:
Finally, leaders should prepare for a slower-than-expected recovery. The consensus is that 2026’s export totals will likely stay well below the 2022 peak. Brands must therefore balance short-term sales efforts with long-term positioning. Maintaining relationships with key importers, even when volumes are down, will be crucial to ensure a smoother ramp-up when conditions improve. In summary, French wine and spirits exporters are facing a “new normal” of tougher global competition. Success will depend on agility - pursuing alternative markets, adjusting offerings, and making strategic investments now to capture value in a challenging environment.
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