French wine and spirits exports declined for the third consecutive year in 2025, falling 8% in value to 14.3 billion euros, according to industry group FEVS. The sharp drop was primarily driven by escalating U.S. tariffs and anti-dumping duties imposed by China, which severely impacted demand in two of the sector’s most important markets.
Export volumes also decreased by 3% to 168 million cases last year, FEVS reported on Tuesday. Since 2022, French wine and spirits exports have plummeted 17% in value, causing the sector to slip from France’s second-largest export industry to third place, now ranking behind aerospace and cosmetics.
U.S. Tariffs and Trade Tensions Impact Sales
The United States, traditionally a key market for French producers, saw sales plunge 21% to 3.0 billion euros in 2025. Volume shipments fell below 30 million cases as higher tariffs and threats of duties reaching up to 200% dampened demand, particularly in the second half of the year.
FEVS Chairman Gabriel Picard warned that further volume corrections may be necessary in 2026. “There is a real decline in the United States and the volume correction may not have been sufficient,” Picard told Reuters ahead of the Wine Paris exhibition.
China Market Collapse Hits Cognac Exports Hard
Meanwhile, sales to China dropped 20% to 767 million euros as anti-dumping duties sharply curtailed shipments of cognac, armagnac, and other wine-based spirits. Cognac exports, the French industry’s flagship spirit, plunged 24% in value and 15% in volume, becoming one of the biggest casualties of escalating trade tensions.
Picard described the situation as particularly severe for cognac producers. “Geopolitical tensions between France and China marked the end of cognac in China,” he said, adding that rebuilding market presence would require considerable time.
European Markets Provide Stability
In contrast, wine and spirits exports within Europe remained broadly stable at 4.1 billion euros. The UK market showed resilience with volumes rising 3% despite fiscal pressures, according to FEVS.
Additionally, emerging markets offered bright spots amid the overall decline. Sales to South Africa jumped 22% to 182 million euros, while Vietnam, the Philippines, and Australia also demonstrated strong momentum, providing French producers with diversification opportunities as traditional markets contracted.
Future Outlook for French Wine and Spirits Exports Remains Uncertain
However, the outlook for French wine and spirits exports in 2026 remains challenging without improved market access to major trading partners. Picard indicated that the sector could benefit from new EU trade deals with India and the Mercosur bloc, where demand is expanding.
The industry group has not confirmed specific projections for recovery timelines, and authorities continue to monitor the impact of ongoing trade barriers. French producers are increasingly focusing on market diversification strategies to offset losses in the U.S. and Chinese markets, though these emerging markets currently represent smaller volumes compared to traditional export destinations.
The sector’s performance in 2026 will largely depend on whether trade tensions ease and market access improves, though FEVS has cautioned that challenging conditions may persist throughout the year.
