Champagne: Pressure Mounts on French Vineyards

On the hillsides of Champagne, it's harvest time, but the atmosphere is not what it usually is. This year, the event, which brings together around 10,000 workers in the vineyards, is likely to be marred by controversy. French labor unions, led by the CGT (Confédération générale du travail), have been protesting for several days in Épernay, in the heart of the vineyards where the great vintages are produced, to draw attention to the working conditions imposed by certain service providers in the sector, especially on foreign workers. Low wages, unpaid overtime, breaks not respected, exhausting work schedules: two months ago, a high-profile trial led to a conviction against a service provider in the champagne sector accused of human trafficking.

Today, unions fear that the increasing use of subcontracting by champagne houses could lead to other similar situations. These controversies, in the midst of the harvest season, further weaken an industry already affected by declining production and sales. The geopolitical context, consumer caution, new trends in the beverage sector, and climatic uncertainties have led to a significant decline in sales in recent years. While champagne sales across all brands had already fallen by 8.2% in 2023, last year's results were even more disappointing, with a 9.2% drop in overall sales for 271.4 million bottles sold.

At the beginning of the year, industry players were still very optimistic about the future: a report by Business Research Insights published in January estimated that by 2032, the market for this precious nectar could reach $15.3 billion in revenue, with growth exceeding 7% per year.

Today, these expectations have been significantly revised downward. In July, the leading Champagne producers met in Épernay, in the Marne region, to take stock of the market situation. The producers decided to set the marketable yield for this year's harvest at 9,000 kilograms per hectare, which is significantly lower than previous quotas (10,000 kilograms in 2024 and more than 11,000 in 2023). The decision was made with the aim of avoiding negative pressure on prices and a devaluation of production. Since August 7, 2025, the increase in US customs duties to 15% on wines and spirits has further darkened the picture. As the leading sparkling wine exported to the United States (10% of champagne is exported there), champagne has every interest in conquering new markets to maintain its economic health.