Why Champagne Sales Are Down in the US

Champagne sales significantly dropped in 2023 after a few record-breaking years of sales brought on by the end of the lockdowns from the COVID-19 pandemic.

In a recent report by Comité Champagne, a trade association representing over 16,000 winegrowers and 320 Champagne houses, said that last year, total shipments of Champagne from France dropped to 299 million bottles, which is a downturn of 8.2% in comparison to the previous year.

Sales have stabilized to the levels they were at before the pandemic in 2019, when 297.3 million bottles were shipped. In 2022, 325 million bottles were shipped and sales shot up by 33%.

Maxime Toubart, president of the Syndicat Général des Vignerons and co-president of the Comité Champagne, “welcomes this return to market stability.” She said, “Champagne is a protected appellation produced within a delimited area and governed by strict rules that make it impossible to sustain strong growth in volume over the long term.”

A Comité release said that even though total shipment dropped, many Champagne houses were not hugely impacted as they made more sales with pricier labels. This allowed them to sustain their overall sales above €6 billion ($6.6 billion) for another year.

International and domestic sales both dropped by 8.2% in 2023, with total exports at 172 million bottles, which accounts for 57% of total sales, “compared to 45% 10 years ago,” according to Comité Champagne.

In comparison, within France — the primary consumer base for Champagne — shipments declined to 127 million bottles. The association explained that the country “has suffered more from inflation, compared to export markets, which has weighed on household budgets throughout the year.”

David Chatillon, the association’s co-president, said, “The decline was to be expected, but with the value maintained, Champagne is still optimistic for the future, whilst remaining sensitive to the geopolitical context and the state of the global economy.”

Champagne is not the only alcoholic drink that has seen a drop in sales and shipments. Other wine and spirits have also experienced similar drops in sales as drinkers slow down on bulk buying to stock up on alcohol in their homes after bars and restaurants have opened back up.

The leading Champagne producer, LVMH Moët Hennessy, which owns premium brands such as Moët & Chandon and Dom Pérignon, faced a hit shown in an October earnings report that comprised the first nine months of 2023. The report showed that the wine and spirits category was its only business group to report declines, dropping by 7%.