China drags French spirits exports down
The value of French spirits exports fell by 6.5% last year as tensions in China caused a double-digit drop for Cognac and Armagnac.
Global sales of French spirits fell to €4.8 billion (US$5.1bn) in 2024, while volumes dropped by 1.8% to 46.5 million nine-litre cases, data from trade body the Fédération des Exportateurs de Vins & Spiritueux (FEVS) revealed.
It followed a double-digit decline in both volume and value for French spirits in 2023.
Cognac saw its 2024 volumes dip by 0.6% while its value plunged by 10.9% to €2.98bn (US$3.1bn).
The Bureau National Interprofessionnel du Cognac recently noted a ‘significant’ rise in shipments of younger Cognacs last year, while VSOP and XO declined by 8.6% and 26.4%, respectively.
Armagnac and Calvados also saw double-digit drops in value, down by 15.4% and 14.6% respectively, data from FEVS showed.
Calvados volume sales fell by 11.1% but Armagnac managed to grow its volume sales by 16.6%.
French vodka only category to grow by value
Vodka was the only category to increase its value, up by 10.1% in 2024, while vodka’s volume sales rose by 4.1%.
French liqueur exports recorded a small volume decrease of 0.7% and a value drop of 2.3%.
In total, French wine and spirits exports were down by 4% in value to €15.6bn (US$16.2bn) in 2024, following a decline of 5.9% the previous year.
French wine saw a 3% value drop and a 0.7% increase in volume last year.
FEVS noted that the declines for wine and spirits were in the context of economic and geopolitical tensions.
“After a year in 2023 marked by a sharp drop in volumes, we now see stabilisation at the cost of a reduction in value,” said Gabriel Picard, president of FEVS.
“Inflation and geopolitical uncertainties are weakening, at least temporarily, the strong premiumisation observed in previous years.”
In the US, French wine and spirits exports rebounded last year with a 5% increase to €3.8bn (US$3.96bn).
FEVS said the return to growth was the result of a reduction in wholesaler stocks, which helped wine to rise by 8.4%, while spirits were stagnant (down by 0.1%).
The value of exports to the UK rose slightly by 0.7% to €1.7bn (US$1.77bn), with spirits soaring by 21% to €260m (US$270.7m) as wine dipped by 3.9%.
However, in terms of volume, French spirits to the UK declined by 2.5% while wine increased by 5.4%.
FEVS highlighted a mixed performance in Asia with wine and spirits exports to China falling below the €1bn mark (down by 20%), due to an ‘unfavourable economic environment’ intensified by the country’s anti-dumping investigation into European brandies.
The investigation launched on 5 January 2024 and was due to last for one year. However last month, the investigation was extended until 5 April 2025.
Across the region, there were pockets of growth in markets such as Malaysia (up by 5% to €75m) and Thailand (up by 8% to €62m).
On the other hand, Japan saw a value drop of 4% to €655m (US$682m).
Satisfied or concerned?
Picard added: “Should we be satisfied with a performance that remains the fourth highest in history, or be concerned about the continued decline in both volume and now value?
“On top of global economic volatility, geopolitical uncertainty remains high, whether concerning China or the United States.
“We expect our European and French leaders to fully grasp that our industry, a key pillar of national sovereignty that cannot be outsourced, must be properly supported.
“In particular, they must resolve without further delay the dispute affecting Cognac and Armagnac for over a year, which otherwise will severely impact all links in the supply chain and beyond.”
Picard called on policymakers to be “proactive and engaged” and work together to “remove the obstacles weighing on our industry”.
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