The sound of popping champagne has long been a hallmark of celebrations. However, the tradition of toasting at events such as weddings, birthdays, and parties seems to have fizzled out in 2024. Companies and executives attribute this decline to a lack of enthusiasm among consumers, suggesting that people may not feel joyful enough to celebrate.
Luxury giant LVMH, known for brands such as Dior, Tiffany & Co., and several Champagne labels, reported a 15% decrease in Champagne bottle sales for the first half of the year, according to Business Insiders.
Chief Financial Officer Jean-Jacques Guiony explained the dramatic setback faced by the Champagne industry. He attributed the sales decline to ‘unhappy people’ and stated, “Champagne is closely associated with celebration and happiness.”
He added, “Perhaps the current global situation, whether geopolitical or macroeconomic, isn’t encouraging people to celebrate or open bottles of champagne.”
During the COVID-19 pandemic, the Champagne industry experienced a severe downturn. Between April and August 2020, the revenue fell by about one-third, which translates to a loss of roughly two billion dollars. Additionally, approximately 100 million bottles of Champagne went unsold during this period.
The Champagne industry is still grappling with recovery, as recent data reveals that the situation has not yet fully improved. According to the trade association Comité Champagne, which represents Champagne producers, growers, and cooperatives, shipments have been on a downward trend since their peak in 2022.
In the first half of this year, total Champagne shipments amounted to 106.7 million bottles, marking a 15.2% decline from the same period last year. This decrease brings shipments nearly back to pre-COVID levels.
LVMH, which owns renowned Champagne brands such as Dom Pérignon, Krug, and Mercier, is not alone in experiencing a decline in demand. Guiony noted that the entire Champagne industry is facing significant pressure, especially in Europe.
Additionally, David Chatillon, co-president of the Comité Champagne, mentioned in a recent report that this year’s grape harvest has been adversely affected by poor weather conditions. The region has experienced ample wet and frosty weather in 2024, which makes Champagne grapes particularly vulnerable to mildew fungal infections.
While there has been some progress in bouncing back from the pandemic’s impact, the industry has yet to regain its pre-pandemic performance and continues to face ongoing challenges.
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