French wine exporters are experiencing an unprecedented decline, marking the third continuous year of dwindling sales which has seen a projected 8% decrease in export value to €14.3 billion in 2025, according to the French Federation of Wine and Spirits Exporters (FEVS). This downturn sees the French wine and spirits sector fall from the second-largest export industry to the third, overtaken by the aerospace and cosmetics industries. Since 2022, the value of wine and spirits exports has plummeted by as much as 17%, indicating a significant shift in the market dynamics.

The struggles of the French alcohol industry are attributed to escalating global trade tensions, particularly stemming from the trade policies of the United States and China. Heightened tariffs on U.S. imports last year, alongside threats of even steeper tariffs reaching up to 200%, have cooled demand for French wines and spirits. The impact of these international trade challenges has severely affected the positioning of French products in global markets, threatening both sales and the reputation of these renowned wines.

As French winemakers grapple with these challenges, there is speculation about whether trade agreements like Mercosur could provide a lifeline. The potential for increased exports to South American markets might offer some hope, but uncertainties surrounding global trade policies and market conditions remain. The industry faces a crucial juncture, and strategic responses from French producers will be vital to reversing the ongoing downward trend in exports.