Bitter Champagne: price increase lowers sales. And the French "betray" their bubbles with Prosecco and Crémant

The Champagne sector had a worse 2023 than anticipated. The famous French bubbles closed the year with 299 million bottles sold, compared to the 314 million estimated by the Comité Champagne at the end of the first half of last year. The overall result is a sharp decline (-8.2 percent) compared to 2022, which, however, set a sales record with 325 million pieces and a turnover exceeding 6 billion euros for the first time.

Competition from Prosecco and Crémant Wines

It's a mixed balance, where both Champagne houses and vignerons across the Alps were affected by the effects of inflation and a certain disinterest from French citizens in spending on their flagship bubbles. Market shares were eroded by both Crémant wines, local competitors to Champagne using the traditional method, which have now surpassed the threshold of a hundred million bottles (including Alsace, Burgundy, Bordeaux, Loire, Jura), and Prosecco, which has found fertile ground in France, experiencing double-digit growth in 2023. One of the reasons for this shift among the French is an increase in the average bottle prices, rising last year (according to retail surveys by consumer associations, excluding direct sales in cellars or online) to over 34 euros for a bottle of Champagne with the winery's label and over 24 euros for a distributor's label.

Turnover remains above 6 billion euros

In detail, during 2023, Champagne sold 127 million bottles in France and 172 million bottles abroad, still maintaining a turnover above six billion euros. Foreign sales, in particular, were significantly higher than the pre-pandemic period (2019) when the units were 156 million, currently representing 57% of total sales (this share was 45% ten years ago), demonstrating a continually growing inclination towards exports. The Comité Champagne explains the decline in export volumes recorded in 2023, losing over eight points compared to the previous year, as a result of the massive stockpiling of bottles carried out two years ago by distributors, fearing they wouldn't have enough product to resell on the market.

Optimism for the future

According to Maxime Toubart, co-president of the Comité Champagne and president of the vignerons' union, 2023 brings the designation back to normal conditions after three abnormal years. "The decline was expected, and we remain optimistic about the future," highlighted David Chatillon, president of the Union of Champagne Houses and co-president of the Comité. Optimism is well-founded, especially considering the extraordinary vintage of 2023 for the entire French district, judged to be of great quality.