French wine, spirits exports lose fizz for third year as trade tensions hit

Core Insights - French wine and spirits exports have declined for the third consecutive year, dropping 8% in value to 14.3 billion euros ($17.03 billion) and 3% in volume to 168 million cases in 2025 due to U.S. and Chinese trade barriers [1][2] Export Trends - Since 2022, the sector has experienced a 17% decrease in export value, falling from the second-largest export sector to the third, now behind aerospace and cosmetics [2] - Sales to the United States fell 21% to 3.0 billion euros, with volumes dropping below 30 million cases, primarily due to higher tariffs and threats of increased tariffs [3] - Exports to China decreased by 20% to 767 million euros, significantly impacted by anti-dumping duties on cognac and other wine-based spirits [4] Market Dynamics - Cognac exports, a key product for the French industry, saw a 15% decline in volume and a 24% drop in value, highlighting the adverse effects of geopolitical tensions [4] - Within Europe, exports remained stable at 4.1 billion euros, with notable resilience in the UK market, where volumes increased by 3% [5] - Emerging markets such as South Africa, Vietnam, the Philippines, and Australia showed strong growth, with South Africa's sales rising by 22% to 182 million euros, providing diversification opportunities as traditional markets face challenges [5]