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

By Sybille de La Hamaide

PARIS, Feb 10 (Reuters) - French vino and spirits exports fell for a 3rd consecutive twelvemonth successful 2025 arsenic U.S. tariffs and duties ​in China wounded sales, and the outlook remains challenging, manufacture radical FEVS said ‌on Tuesday.

French vino and spirits exports dropped 8% to 14.3 cardinal euros ($17.03 billion) and 3% successful measurement past ‌year to 168 cardinal cases arsenic U.S. and Chinese commercialized barriers deed demand.

Since 2022, French vino and spirits exports person fallen 17% successful worth and slipped from being France's second-largest export assemblage to third, down aerospace and cosmetics, arsenic commercialized tensions intensified.

Looking ahead, FEVS Chairman Gabriel Picard ⁠said the assemblage should payment ‌from caller EU commercialized deals with India, and with the Mercosur bloc, wherever request is expanding, though 2026 could stay hard without improved marketplace ‍access.

Last year, higher tariffs connected shipments to the United States and threats of adjacent higher ones, up to 200%, cooled demand, particularly successful the 2nd half, with income dropping 21% to 3.0 cardinal ​euros and volumes falling beneath 30 cardinal cases.

"There is simply a existent diminution successful the ‌United States and the measurement correction whitethorn not person been sufficient, and possibly we volition spot different measurement correction successful 2026," Picard told Reuters up of the Wine Paris exhibition.

Sales to China dropped 20% to 767 cardinal euros successful 2025 arsenic anti-dumping duties sharply curbed shipments of cognac, armagnac and different wine-based spirits, FEVS said.

Exports of cognac, the French industry's ⁠flagship spirit, plunged 15% successful measurement and 24% successful ​value, becoming 1 of the biggest casualties of escalating ​trade tensions.

"Geopolitical tensions betwixt France and China marked the extremity of cognac successful China. Now stopping thing doesn't instrumentality long, but rebuilding takes a agelong ‍time," Picard said.

Within Europe, ⁠wine and spirits exports held broadly unchangeable astatine 4.1 cardinal euros, with resilience successful markets specified arsenic the UK, wherever volumes roseate 3% contempt fiscal pressure, FEVS ⁠said.

Sales to South Africa jumped 22% to 182 cardinal euros, portion Vietnam, the Philippines and Australia besides showed ‌strong momentum, offering diversification options arsenic accepted markets contracted.

($1 = 0.8397 euros )

(Reporting by ‌Sybille de La Hamaide; Editing by Susan Fenton)