As already discussed in the previous article, in 2023, the Champagne market registered a return to "normality" with a decrease in overall sales of 8.2% compared to 2022. 299 million bottles were sold compared to 326 million of the previous year, a figure however in line with the sales of 2019, which had reached 297.3 million bottles. After three exceptional years, Champagne has returned to pre-Covid sales levels, highlighting a rebalancing of the market fluctuations experienced between 2020 and 2022. However, the decrease in sales was accompanied by an increase in bottle prices.
The increase in Champagne prices has led producers to reorient their market strategies. Many important Maisons, such as Nicolas Feuillatte and Canard-Duchêne, have marginalized the production of basic cuvées by focusing above all on the production of higher value cuvées. This change was driven by the need to use more expensive grapes to produce premium cuvées, adjusting pricing strategies accordingly [1].
The comparison between sales of 2023 and the first three months of 2024 shows a further significant decline in volumes of 17.1%, with 67.4 million bottles sold compared to 81.2 million in the same period of 2023 [2].
Export figures in the first quarter demonstrate how some overseas markets have been particularly challenging for Champagne producers, with sales falling by 21.4%, with the EU recording the most significant decline at 25.2%.
Non-vintage Champagnes, which have always represented a significant share of total sales, were the most affected. This category, which represents 76% of total Champagne sales, recorded a decrease of 8.6% compared to 2023, losing market share, with significant drops in the EU. In contrast, Cuvées de Prestige, although representing a smaller part of the market in terms of volume, continue to drive sales by value, particularly in Asia and the United States.
Despite the decline in sales and the numerous challenges facing the Champagne sector, the future prospects are positive. Charles Goemaere, general director of the Comité Champagne (CIVC), remains confident and calls for a calm reading of the data, underlining that the Champagne sector focuses on long-term excellence rather than short-term volume. David Chatillon and Maxime Toubart, co-presidents of the Comité Champagne, also reiterate how Champagne remains the main reference for consumers, embodying an unrivaled image of luxury and prestige, as highlighted by a 2023 IPSOS research [3].
Decrease in volumes but not in value
The reasons for optimism are also to be found in the fact that, despite the drop in volumes, the growth in value of the cuvées has allowed the denomination to maintain its turnover, which in 2023 was above 6 billion euros. This financial success is partly due to rising prices, but also a strategic shift towards higher value cuvées, particularly in export markets. The Cuvée de Prestige category saw an increase of 11.8% compared to 2019 and the Extra Brut/Brut Nature category doubled its export sales in the same period [4].
While sales declined in major Champagne markets such as France, United States, United Kingdom, Japan, Germany, Italy, Australia, Switzerland, Belgium and Scandinavia, they increased significantly in Southeast Asia, South Korea, South Africa and others emerging markets. The Arabian Peninsula, particularly the United Arab Emirates, has also seen growth thanks to more flexible alcohol policies in Dubai and Abu Dhabi.
The declining in Champagne sales by volume represents a significant challenge for producers, requiring strategic adjustments to address changing market conditions. Despite efforts to focus on high-value cuvées and emerging markets, the sector faces a difficult path. The contrast between optimistic long-term projections and current sales realities suggests that manufacturers, especially the major Maison, must quickly adapt to new market dynamics to regain stability and growth.
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