French Wine and Spirits Exports Face Third Consecutive Decline Amid Global Trade Barriers

France’s wine and spirits sector confronts a persistently difficult landscape as exports contracted for the third straight year in 2025, reflecting the cumulative weight of tariff escalations and trade restrictions across major markets. The industry federation FEVS reported a sharp 8% decline in export value to 14.3 billion euros, with volumes contracting 3% to 168 million cases. This downturn represents a fundamental shift in France’s economic positioning—the wine and spirits sector has slipped from being the nation’s second-largest export industry to third place, now trailing aerospace and cosmetics as trade frictions deepen their impact.

Market Access Erosion and the Three-Year Collapse

The statistics reveal a troubling trajectory since 2022. Over the past three years, French wine and spirits exports have contracted by 17% in value, signaling not merely cyclical weakness but structural challenges in global market access. FEVS Chairman Gabriel Picard emphasized during recent remarks that the sector faces a “real decline” in purchasing patterns, with volume adjustments potentially insufficient to stabilize demand in the near term. The outlook for 2026 remains uncertain without meaningful progress toward improved trade access with key markets.

China’s Punitive Duties Reshape the Spirits Trade

China’s anti-dumping measures have delivered the most severe blow to French exporters. Sales to China plummeted 20% in 2025, dropping to 767 million euros—a dramatic contraction driven by escalating anti-dumping duties that have curtailed shipments of premium spirits including cognac, armagnac, and wine-based products. This 767 million euro figure masks deeper damage within specific categories: cognac exports, France’s flagship spirit internationally, experienced particularly acute pressure, declining 15% in volume and 24% in value.

Industry observers characterize this shift as potentially permanent. “Geopolitical tensions between France and China marked the end of cognac in China,” Picard noted, underscoring a critical industry insight—while halting trade relationships occurs rapidly, reconstructing market relationships and consumer trust requires substantially longer timeframes. The loss of Chinese market access represents not merely a temporary setback but a strategic disruption for premium French spirits.

The United States Tariff Regime Compresses Demand

Concurrent with China’s restrictions, the United States market faced mounting tariff pressures throughout 2025. Higher duties on French shipments, coupled with threats of additional tariffs reaching 200%, suppressed demand substantially in the second half of the year. American purchases fell 21% to 3.0 billion euros, with volumes dropping below 30 million cases. The trajectory suggests that volume reductions may not yet fully reflect underlying demand destruction, raising the possibility of further contraction during 2026 if tariff policies remain unchanged or escalate further.

Geographic Diversification: Europe Stabilizes, Emerging Markets Show Promise

Within European markets, French wine and spirits exports maintained relative stability at approximately 4.1 billion euros, demonstrating resilience despite fiscal pressures. The United Kingdom market proved particularly resilient, with volumes rising 3% despite tax challenges affecting consumer purchasing. Beyond traditional European strongholds, emerging markets demonstrated encouraging momentum. South African purchases jumped 22% to 182 million euros, while Vietnam, the Philippines, and Australia registered strong performance—together creating a potential offset to contraction in the United States and China.

Future Prospects: Conditional Optimism Around Trade Negotiations

Looking forward, FEVS identified potential growth vectors through expanding trade relationships. Pending EU trade agreements with India and negotiations within the Mercosur bloc, where demand continues expanding, could provide partial relief. However, these developments remain uncertain, and without accelerated market access improvements, 2026 likely will reflect continued headwinds. The fundamental challenge confronting the French wine and spirits industry is not production capacity or product quality, but rather the architecture of global trade itself—with geopolitical competition constraining access to historically crucial markets and the timeframe for market reconstruction extending well beyond the immediate policy horizon.