French wine, spirits exports drop for third year amid US-China trade tensions

[PARIS] French wine and spirits exports fell for a third consecutive year in 2025, as the US tariffs and duties in China hurt sales, and the outlook remains challenging, industry group Federation des Exportateurs de Vins & Spiritueux (FEVS) said on Tuesday (Feb 10).

French wine and spirits exports dropped 8 per cent in value to 14.3 billion euros (S$21.6 billion); by volume, the numbers were down 3 per cent last year at 168 million cases, as the US and Chinese trade barriers affected demand.

Since 2022, French wine and spirits exports have fallen 17 per cent in value and slipped from being France’s second-largest export sector to third, behind aerospace and cosmetics, as trade tensions intensified.

Looking ahead, FEVS chairman Gabriel Picard said that the sector should benefit from new European Union trade deals with India and with the Mercosur bloc, where demand is expanding, though 2026 could remain difficult without improved market access.

Last year, the higher tariffs on shipments to the US and threats of even higher ones up to 200 per cent cooled demand, especially in the second half, with sales dropping 21 per cent to three billion euros and volumes falling below 30 million cases.

He added: “There is a real decline in the US and the volume correction may not have been sufficient, and perhaps we will see another volume correction in 2026.”

The country’s sales to China dropped 20 per cent to 767 million euros in 2025, as the anti-dumping duties sharply curbed shipments of cognac, armagnac and other wine-based spirits, FEVS added.

The exports of cognac, the French industry’s flagship spirit, dropped 15 per cent in volume and 24 per cent in value, becoming one of the biggest casualties of escalating trade tensions.

Picard noted: “Geopolitical tensions between France and China marked the end of cognac in China. Stopping something doesn’t take long, but rebuilding takes a long time.”

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Within Europe, wine and spirits exports held broadly stable at 4.1 billion euros, with resilience in markets such as the UK, where volumes rose 3 per cent despite fiscal pressure, FEVS said.

The sales to South Africa jumped 22 per cent to 182 million euros, while Vietnam, the Philippines and Australia also showed strong momentum, offering diversification options as traditional markets contracted. REUTERS