China's Trade Crackdown Erases 767 Million Euros in French Wine Exports as Industry Faces Third Year of Decline

The French wine and spirits industry is grappling with an unprecedented crisis, with exports experiencing their third consecutive year of contraction driven primarily by deteriorating trade relationships and protectionist policies. The most devastating blow came from China, where sales plummeted by 20%, translating into a loss of 767 million euros in just one year—a dramatic collapse that reflects the vulnerability of France’s flagship export sectors to geopolitical tensions.

The 2025 performance paints a sobering picture for the industry. Overall exports contracted by 8% in value, dropping to 14.3 billion euros, while volumes declined 3% to 168 million cases. More concerning for France’s economic standing, wine and spirits exports have fallen 17% since 2022, causing the sector to slip from its position as France’s second-largest export category to third place, now trailing aerospace and cosmetics.

When Cognac Met Protectionism: The China Market Implosion

The dramatic 767 million euro sales reduction in China represents far more than just a quarterly setback—it signals the fragility of decades-old trade relationships. Anti-dumping duties imposed by Beijing have disproportionately targeted cognac, armagnac, and other premium spirit products, which comprise a significant portion of France’s spirits portfolio. Cognac exports, long considered the industry’s crown jewel, experienced a particularly severe contraction, with volumes dropping 15% and values declining by 24%.

Gabriel Picard, chairman of FEVS, attributed this collapse to escalating geopolitical tensions, noting that while market disruptions can occur quickly, rebuilding consumer confidence and distribution networks in China will require years rather than months. The sentiment underscores a critical reality facing French exporters: reversing the damage inflicted by trade barriers presents a far more formidable challenge than the initial shock of policy changes.

Tariff Wars Push U.S. Market Into Retreat

The United States market, traditionally one of France’s crucial export destinations, has also deteriorated sharply due to escalating tariff regimes. Sales to the U.S. collapsed by 21%, falling to just 3.0 billion euros, as higher tariffs on incoming shipments dampened demand, particularly during the second half of the year. Volumes plummeted below 30 million cases, representing significant contraction that industry observers suggest may necessitate further volume adjustments in 2026 if market access conditions fail to improve.

Bright Spots Emerge in Unexpected Markets

Not all regions tell a story of decline. Within Europe, the market held relatively stable at 4.1 billion euros despite broader economic pressures. The UK demonstrated notable resilience, growing volumes by 3% despite facing its own fiscal headwinds. Beyond traditional strongholds, emerging markets offered encouraging signals: South African imports surged 22% to 182 million euros, while Vietnam, the Philippines, and Australia all demonstrated strong momentum, suggesting that geographic diversification represents a critical strategy for offset

ting contraction in established markets.

The Path Forward: Uncertainty Tempered by Opportunity

Looking ahead, FEVS leadership has identified potential catalysts for growth, particularly through newly negotiated EU trade agreements with India and the Mercosur bloc, where demand expansion presents meaningful opportunities. However, industry officials caution that 2026 likely will remain challenging without tangible improvements in market access, particularly regarding the resolution of trade disputes with both the United States and China.

The trajectory of the French wine and spirits sector now depends heavily on diplomatic resolutions to trade tensions and the industry’s capacity to cultivate new consumer bases in diversified global markets. While the 767 million euro China market loss symbolizes the damage inflicted by protectionism, emerging opportunities in secondary markets suggest that strategic adaptation and geographic rebalancing may help stabilize exports in the years ahead.