Full Breakdown
Decline in French Wine and Spirits Exports Amid Trade Tensions
2/11/2026, 2:52:22 AM
Overview of the Decline
French wine and spirits exports have experienced a significant downturn, reaching their lowest volume in at least 25 years. In 2025, total exports fell by 3% to 168 million cases, with a corresponding 8% drop in value to €14.3 billion ($17.03 billion). This decline has shifted the sector from being France's second-largest export category to third, behind aerospace and cosmetics, as reported by the Federation des Exportateurs de Vins & Spiritueux (FEVS).
Factors Contributing to the Decline
The downturn is attributed to several interrelated factors, primarily the imposition of tariffs by the United States and anti-dumping duties by China. The U.S. tariffs, which have threatened to rise as high as 200%, significantly cooled demand, particularly in the latter half of the year. Sales to the U.S. plummeted by 21% to €3 billion, with volumes dropping below 30 million cases. Similarly, exports to China fell by 20% to €767 million, severely impacting shipments of cognac and other wine-based spirits.
Gabriel Picard, Chair of FEVS, noted that geopolitical tensions have severely affected the cognac market in China, stating, "Geopolitical tensions between France and China marked the end of cognac in China. Now stopping something doesn’t take long, but rebuilding takes a long time."
Market Resilience and Future Outlook
Despite the challenges in major markets, some resilience was observed within Europe, where wine and spirits exports remained stable at €4.1 billion. The UK market, in particular, saw a 3% increase in volume, indicating potential for recovery. Additionally, new trade agreements between the European Union and the Mercosur bloc, as well as India, may provide future opportunities for growth.
However, industry experts caution that without improved market access, the outlook for 2026 remains uncertain. Picard expressed concerns about the potential for further volume corrections, stating, "There is a real decline in the United States and the volume correction may not have been sufficient."
Government Response
In light of the declining exports, the French government has announced plans to allocate €130 million to assist farmers in uprooting unprofitable vines. This initiative aims to protect the core wine industry, which constitutes about 11% of the world's vineyards. President Emmanuel Macron emphasized the necessity of this action during the inauguration of the Wine Paris exhibition, highlighting the importance of safeguarding France's agricultural and food sectors.
Criticism and Opposition
Critics argue that the government's response may not adequately address the underlying issues affecting the wine and spirits sector. The combination of trade wars, fluctuating exchange rates, and diminishing consumer confidence has created a challenging environment for exporters. David Chatillon, co-chair of the Comité Champagne, remarked on the bleak prospects for recovery, stating, "We hope to see a rebound in sales in 2026 but it will likely not be significant because the environment is not very different."
Verbatim Quotes
- “In volume, our exports have been on a slump and are at their lowest level in at least 20 years,” — Gabriel Picard, President of FEVS
- “Geopolitical tensions between France and China marked the end of cognac in China. Now stopping something doesn't take long, but rebuilding takes a long time,” — Gabriel Picard, Chair of FEVS
- “We hope to see a rebound in sales in 2026 but it will likely not be significant because the environment is not very different,” — David Chatillon, Co-chair of the Comité Champagne
The future of French wine and spirits exports remains precarious as the industry navigates ongoing trade tensions and seeks new markets for growth.
