Champagne is often associated with luxury and celebratory occasions. This beverage category has long been observed, thriving in times of economic boom while the sales decline during times of recession. Currently, the global market for champagne is on the path to recovery after suffering two years of decline due to severe global economic downturn. The global champagne shipments registered approximately 7.5% growth in 2010 over 2009 in the light of strengthening economic fundamentals.
The industry's core markets, France, the UK and the US, collectively accounted for more than two-thirds of the global volumes in 2010. France is the largest exporter of champagne; however the country's leading position was challenged due to recent worldwide economic recession, when sales plummeted for two years in a row, that is, in 2008 and 2009. The drop was particularly acute in France's two biggest export markets, UK and the US. Later as the demand increased in response to rising incomes and improving consumer confidence, the leading champagne markets managed to reassert their position.
The recent trends seen in the industry include particularly the environmental programs initiated by CIVC, such as transforming the biomass wood waste into renewable source of energy, and introduction of lightweight champagne bottles helping to reduce carbon emissions. The factors that will drive the global champagne market towards growth in the coming years mainly include growth in luxury goods market, increase in worldwide wine consumption, rising incomes, and overall improving economic fundamentals. However, the recent and sudden recovery in the market has left the champagne houses short of stock which might pose a serious threat to the industry in the coming years.
The industry is characterized by intense market competition with numerous global and regional players operating in the market. The leading champagne manufacturing companies include LVMH Mo