Champagne Problems: Where It Stands and Where It’s Going

Looking Back to 2024: Champagne Sales Lost Their Sparkle

In 2024, Champagne shipments declined by nearly 10% to 271 million bottles, according to the Comité Champagne. This downturn was primarily attributed to global economic uncertainties, inflation, and geopolitical conflicts, which reduced consumer enthusiasm for celebrations and spending on luxury beverages.

Additionally, LVMH, a leading Champagne producer, reported a 15% drop in sales during the first half of 2024. Adverse weather conditions, including frost and excessive rainfall, affected grape harvests and production, adding further pressure to the industry. Many consumers felt there was little reason to celebrate, leading to decreased demand for luxury beverages.

Looking Ahead to 2025: Champagne’s Path Forward

As the industry enters 2025, Champagne producers remain cautiously optimistic, though consumer spending habits are unpredictable. With ongoing inflation and shifting financial priorities, demand for luxury beverages may continue to fluctuate.

To adapt, industry leaders are repositioning Champagne as an affordable luxury, encouraging consumers to enjoy it beyond special occasions—from casual dinners to weekend brunches. Sustainability and organic production are also expected to gain traction as younger consumers prioritize eco-friendly and health-conscious choices. Meanwhile, the rise of low-alcohol and non-alcoholic alternatives continues to challenge traditional Champagne sales.

Climate change poses long-term risks for the industry. Rising temperatures, unpredictable weather patterns, frost, drought, and excessive rainfall continue to disrupt grape yields in the Champagne region. In response, producers are investing in sustainable vineyard management, regenerative agriculture, and soil conservation practices to protect their crops and ensure long-term viability.

Despite these challenges, Champagne brands are reshaping their messaging to emphasize everyday indulgence rather than limiting consumption to major celebrations. Some producers are also experimenting with lighter, organic, and more accessible Champagne options to stay relevant in a rapidly evolving market.

Click here to read February’s newsletter: The Advisor – Issue #46