The French beverage industry, a cornerstone of the country’s export economy, has experienced a significant downturn in the third quarter of 2025, according to the latest data from the Directorate-General for Customs and Indirect Duties (DGDDI).
The decline comes despite France’s overall GDP growth surpassing that of the eurozone, highlighting growing fragility in critical sectors such as agri-food, which represents around 11% of national exports, valued at approximately EUR 64 billion in 2024.
Within this category, beverages play a vital role, contributing nearly one-third of exports—about EUR 20 billion. Wines and spirits, which make up 85% of France’s beverage exports, generated EUR 16.5 billion in 2024 and accounted for a trade surplus of EUR 14.3 billion, underscoring their importance to the French economy.
However, the sector’s strong dependence on markets outside the European Union—particularly the United States and China—has exposed it to geopolitical and trade risks. On October 7, China imposed antidumping duties of 34.8% on European eaux-de-vie, with French cognac representing 90% of affected exports. Consequently, cognac shipments to China dropped by 56% in the first quarter of 2025 compared to the same period last year.
In the United States, the Turnberry Trade Agreement continues to apply a minimum tariff of 15% on European beverages. Since April, this has been compounded by an additional 10% surcharge, further affecting export performance. Although France’s export exposure to the U.S. represents only about 2% of GDP, these measures are projected to reduce French economic growth by 0.2 percentage points in 2026.
Despite these challenges, France remains Europe’s leading exporter of wines and spirits beyond EU borders—a position sustained by its focus on premium quality and higher price positioning. While Italy maintains strong competition, particularly in lower and mid-range categories, French producers continue to dominate the high-end market for still and sparkling wines, as well as spirits.
The United States remains the largest destination for French wines and spirits, while China ranks second for cognac and third for still wines. According to DGDDI data, as of 2022, approximately 5,400 French companies were exporting wines and spirits, with 40% targeting the U.S. and 20% exporting to China and Hong Kong. The high degree of concentration in these markets poses strategic risks for producers—especially those focused on cognac and champagne.
Following a post-pandemic recovery driven by higher prices and strong volumes, French wine and spirits exports began to contract in 2023. December 2023 saw an export surge, largely attributed to pre-emptive shipments ahead of expected tariff increases tied to the U.S. presidential election. During that month, Bordeaux exports rose by 150%, other appellations by 100%, and French wines produced within the EU by 125%. A smaller rebound was also noted in March 2025.
Recent data, however, paints a more concerning picture. By August 2025, French beverage exports had fallen by 6.5% compared to July, following a 7.6% decline between January and July (adjusted for seasonality and working days). With September figures still pending, the downward trend appears likely to continue into the final quarter of the year.
The combined effects of trade tensions, tariff uncertainty, and changing global demand are reshaping the landscape of French beverage exports. Industry observers suggest that diversification—both in terms of export markets and product range—will be essential to preserving France’s leadership in the global wine and spirits industry.
Source: Vinetur