French wine and spirits exports continue to plummet for the third consecutive year, as trade tensions with the US and China erode demand in key markets.

According to the French Federation of Wine and Spirit Exporters, exports are projected to fall by 8% in 2025, while production is expected to decline by 3%. The US market alone is expected to see a 21% drop in sales to €3 billion due to higher tariffs and the risk of further tightening. Exports to China are also declining, amid anti-dumping measures heavily impacting cognac and spirits. Since 2022, the total value of exports across the sector has fallen by 17%, causing wine and spirits to drop to third place as France's largest export.

Gabriel Picard, president of the French Association of Wine and Spirits Exporters (FEVS), believes that geopolitical tensions, trade competition, exchange rate fluctuations, and a loss of consumer confidence have put pressure on French exports.

French and European wines are being affected by increased tariffs, first 10% and then 15%, imposed by US President Donald Trump on European alcoholic beverages by 2025.

The announcement of export figures for 2025 coincides with the annual Wine Paris trade fair. French President Emmanuel Macron attended the fair on February 9th and emphasized the need to eliminate unprofitable vineyards to revive the ailing wine industry.

Wine producers are facing overproduction due to declining demand amid changing drinking habits, intense competition, and export difficulties.

Last weekend, the French government announced measures to support the country's wine industry, including the latest €130 million subsidy, to ease the burden on winemakers who are forced to remove their vineyards.

The wine and spirits industry supports 600,000 jobs in France and generates approximately €32 billion in revenue annually.

Source: VTV

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