Declining Sales of Champagne: Economic Factors at Play

In 2024, champagne purchases in Germany witnessed a significant decline, a trend attributed to several economic factors. The combination of rising prices, economic uncertainty, and reduced consumer purchasing power has led to a shift in consumer behavior.

According to industry experts, the price surge can be traced back to deliberate harvest restrictions during the initial year of the pandemic, coupled with frost damage in spring 2021. These circumstances, combined with an exceptionally high demand in the subsequent years, resulted in marked price increases for champagne. The CEO of a prominent champagne producer noted that these elevated prices are now clashing with a declining consumer purchasing power, explaining the drop in sales volumes.

Champagne has long been considered a symbol of celebration and joyous occasions, yet the ongoing economic challenges, including job cuts and a prevailing sense of crisis, have diminished such positive moments, both personally and in the business realm. As a result, many consumers are choosing to be more cautious with their spending.

Data reveals that the volume of champagne sold in Germany plummeted by 18.5% in 2024 compared to the previous year, with the number of bottles imported dropping from 11.6 million to 9.51 million, as reported by the Comité Champagne. This decline reflects a reduction in revenue for French champagne producers on the German market, where sales fell from EUR268 million to EUR228.8 million. Despite this drop, industry representatives emphasize that this remains the third strongest year on record.

Furthermore, the trend towards alcohol abstinence has been increasingly noticeable, prompting a shift in consumer preferences. While overall champagne sales have decreased, an emerging trend shows consumers are opting for higher-quality champagnes instead of lower-priced alternatives. The director of the Bureau du Champagne for Germany remarked that consumers are looking for quality over quantity.

Interestingly, the market for Crémant, a sparkling wine produced outside the Champagne region, is seeing growth. This wine, which can be made in various regions of France, is often more affordable yet still regarded as high quality. The demand for Crémant has risen as consumers seek alternatives that provide a similar experience to champagne without the associated costs.

As we approach the Easter season, there are signs of potential recovery in the champagne market. Recent reports indicate a rebound in champagne sales, alongside increased interest in Crémant, Prosecco, and German sparkling wines. Retailers are optimistic about a positive shift in sales as holiday celebrations draw near.