New data released by the Comité Champagne shows global Champagne shipments fell 8.2% in 2023 compared to 2022, dropping to 299 million bottles.
Champagne sales went through the roof during “Roaring ’20s” celebrations that followed pandemic lockdowns ending, but the latest figures show that shipments have returned to pre-COVID-19 levels.
With 297.3 million bottles shipped in 2019, sales fell the following year by 18% during the pandemic, and then bounced back by 33% in the following two years to reach over 325 million bottles by the end of 2022.
The Drinks Business notes: “There was a sharp decline in demand for Champagne from the worldwide trade in the final few months of 2023, particularly November, as customers chose to run down stocks rather than ship more fizz from the sparkling wine appellation.
“Signs of a consumer-slowdown in Champagne consumption were evident in the rising intensity of price promotions in the run up to Christmas.”
The decrease in France’s wine shipments also mirrors a slowdown in the luxury market. Above-average growth rates, inflation, and a decrease in aspirational shoppers are all key factors that could lead to a downturn, RBC Capital Markets reports.
Overstocking to blame for lower demand
Comité Champagne said overstocking by distributors in response to the fear of shortages in 2022, partly explained the decline between 2022 and 2023 results.
Popular champagne brands such as Moët & Chandon, Veuve Clicquot and Bollinger struggled to keep enough stock on shelves at bottle shops in the lead-up to Christmas.
“Major importers, retailers and customers of Champagne had put in large orders towards the end of 2022, fearful of future scarcity, with shipments to markets such as the US and Australia being especially large at this time,” The Drinks Business said.
However, the value of Champagne has remained strong. Despite the drop in volume, the increase in value for cuvées, especially within the export markets, has enabled the appellation to maintain its sales above 6 billion euros.
Comité Champagne co-president David Chatillon 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 faces strong competition
According to fine wine expert Danny Younis, another reason for the decline is that Champagne no longer has a monopoly on the fizzy category.
“Fantastic quality bubblies now come from US, England, South Africa, New Zealand and Australia – House of Arras from Tasmania a standout,” Younis said.
“There is also Cava from Spain, Sekt from G (not from Champagne though).
“That is before you consider the avalanche of sparkling reds from Australia and, dare I say it, even brachetto d’acqui and lambrusco from Italy!
“Of course, the Champenois and French will scoff ‘But they are not champagne!’ Pfft. In many cases the alternatives are better quality wines – and not overpriced and overrated like a lot of champagnes under $100 a bottle.”