Producers' associations say changing habits and a pessimistic world situation are denting sales of French Champagne, with shipments falling nearly 10% last year.

Consumers in key markets such as the United States and France have cut back on consumption of the luxury drink as economic and political anxieties dampen party mood.

“Champagne is a true barometer of the consumer’s state of mind,” said Maxime Toubart, president of the Syndicat Général des Vignerons, the growers’ union, and co-president of the Comité Champagne trade association.

“Given inflation, conflicts around the world, economic uncertainty and political wait-and-see in some of the largest Champagne markets, such as France and the United States, now is not the time to celebrate.”

More affordable alternatives including prosecco, English sparkling wine and sparkling wine are increasingly replacing Champagne among consumers, with demand for premium French sparkling wine falling to its lowest level in more than two decades level. In recent years, cut-price wine has become more competitive in terms of quality.

There is growing evidence that Gen Z and Millennials in key markets such as the United States are abandoning alcohol, often in favor of indulgences such as mocktails and cannabis, just as baby boomers are retiring and spending less on wine.

Last July, French Champagne producers ordered a reduction in the number of grapes harvested after sales fell by more than 15% in the first half of 2024. According to the Champagne Council, full-year shipments fell 9.2% from 2023 to 271.4 million bottles.

In 2022, Champagne demand boomed after the epidemic, with shipments reaching 326 million bottles, but has been declining since then. Shipments in 2023 will be approximately 299 million bottles, a decrease of more than 8%.

The 2024 harvest in France's Champagne region is already hampered by frost and wet weather, a situation exacerbated by a climate collapse that has exacerbated mildew attacks on prized vines.

Sales on the French sales market totaled 118.2 million bottles last year, down 7.2% from 2023, which the association attributed to the prevailing "pessimism" in a country affected by political unrest.

François Bayrou, a veteran centrist and ally of President Emmanuel Macron, was sworn in in December for his fourth term in a year. Prime Minister, as France grapples with a growing crisis in a divided parliament.

Champagne exports also fell last year, with 153.2 million bottles shipped, down nearly 11% from 2023.

“In less favorable times, we must prepare for the future, maintain our environmental (standard) trajectory and conquer new markets and new consumers,” said David Chatillon, co-chairman of the Champagne Council.

Reuters contributed to this report.