Time Called on Happy Hour as French Wine and Spirit Sales Sour in Mainland China, US
•February 11, 2026
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Why It Matters
The slump threatens France’s position in two of its largest overseas markets, reducing revenue streams and exposing the sector to geopolitical risk. It also signals broader shifts in global luxury alcohol consumption amid trade friction and domestic policy changes.
Key Takeaways
- •French wine exports fell 4.1% to €10.5 bn.
- •Spirits down 17.4%; cognac plunged 23.8% year‑over‑year.
- •US tariffs and Chinese duties cut exports by over 20%.
- •Mainland China sales dropped 19.5% amid crackdown and tariffs.
- •Hong Kong wine sales rose 8%, hinting at mainland recovery.
Pulse Analysis
The latest French export figures illustrate how trade policy can quickly erode market share for premium goods. After the Trump administration imposed a 15% levy on European wine and spirits, U.S. demand shrank by more than a fifth, while a retaliatory Chinese anti‑dumping investigation added a minimum price floor for most cognac shipments. Together with a strong euro, these measures squeezed margins and forced French producers to reassess pricing strategies across both continents.
In China, the decline is rooted in more than tariffs. Beijing’s crackdown on official banquets and a broader push to curb excessive drinking have curbed on‑premise consumption, while the minimum‑price rule for cognac effectively raises retail costs for Chinese buyers. The result is a 19.5% drop in mainland sales and a 25% loss of cognac market share, wiping out a decade of growth. Yet Hong Kong’s 8% rise in wine value suggests that affluent consumers still seek French products when regulatory pressure eases, positioning the Special Administrative Region as a bellwether for future mainland demand.
Looking ahead, French exporters must diversify beyond the U.S. and China, leveraging emerging markets and digital channels to offset tariff‑induced volatility. Strengthening ties with Hong Kong could provide a gateway to a more resilient Chinese consumer base, while lobbying for EU support may mitigate collateral damage from broader trade disputes. Strategic pricing, brand storytelling, and investment in local partnerships will be essential to navigate the evolving geopolitical landscape and restore growth momentum.
Time called on happy hour as French wine and spirit sales sour in mainland China, US
French wine and spirits exporters see worst results since the Covid‑19 pandemic
French wine and spirits exporters saw their worst results since the Covid‑19 pandemic last year, as companies were buffeted by stormy trade relations between China and the US, two of the industry’s biggest overseas markets.
“It’s weighing on everyone’s morale,” said Gabriel Picard, president of the French Federation of Wine and Spirit Exporters (FEVS), during a press conference in Paris on Tuesday where he presented the annual figures.
France exported a total of €14.3 billion (117.5 billion yuan) of wine and spirits last year, down by 7.9 per cent. More specifically, wine exports were down 4.1 per cent to €10.5 billion and spirit exports were down 17.4 per cent to €3.7 billion – with cognac exports plunging 23.8 per cent – according to FEVS data.
The total export value declined for the third consecutive year and marked the lowest point since 2020, Picard said, adding that a rebound this year might be difficult given the context.
The 15 per cent tariffs US President Donald Trump imposed on French wine and spirits – along with similar duties levied by Beijing in response to EU tariffs on imports of China’s electric vehicles – were the main factors that dragged down the total exports, according to Picard.
While the United States remained the biggest export market for French wine and spirits at €3 billion, Trump’s tariffs, together with a strong euro, reduced exports by 21.2 per cent in 2025.
The second half of 2025, when it became clear that alcoholic drinks would not be exempt from tariffs in the US‑EU trade deal, saw French wine and spirit exports to the US collapse by 40 per cent in value and 20 per cent in volume, according to Picard.
US President Donald Trump has repeatedly threatened to impose tariffs of up to 200 per cent on French wine since returning to office in January.
China as a whole was the third‑biggest market for French wine and spirit exporters in 2025 at €1.1 billion, down by 12.8 per cent. Mainland China saw an even bigger drop of 19.5 per cent, a fall FEVS attributed to pressure from a domestic economic slowdown, a crackdown on drinking during official activities, anti‑dumping tariffs and minimum prices imposed on French cognac.
While both governments toasted the negotiated end of Beijing’s anti‑dumping investigation against French cognac, where China replaced tariffs with a minimum price for 90 per cent of French cognac exports to China, producers said their sales still suffered.
French cognac producers lost roughly 25 per cent of the Chinese market due to the tension, according to Florent Morillon, president of the Bureau National Interprofessionnel du Cognac – France’s leading representative for the industry.
China remains the leading market for French cognac exports by value, ahead of the United States, according to Morillon.
In total, French cognac exports declined by 15 per cent year on year to 141 million bottles, a volume Morillon said was similar to the one reported in 2015 and thus functionally erased 10 years of growth.
Looking ahead, Picard was cautiously optimistic about the Chinese market this year. Pointing to Hong Kong, where sales were stabilising, he said this trend has traditionally been a leading indicator for the mainland.
Wine and spirit exports to Hong Kong rose by 8 per cent in 2025 in value, reaching €332 million, according to FEVS data.
He also confirmed that cognac has been readmitted into Chinese duty‑free stores.
Pointing to the Trump administration’s use of tariff revenue to support soybean farmers hit by trade restrictions, Picard expressed frustration that the French cognac industry had become collateral damage in Europe’s effort to protect its automotive sector, yet received no meaningful support from Brussels after being targeted by China’s countermeasures.
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