Spirit Production in France - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Spirit Production in France industry analysis

Over the five years through 2025, spirit production revenue is expected to drop 3% to €4.3billion, including a 3.9% decline in the current year. France’s spirits industry thrives on authenticity, premiumisation and innovation, with AOC certification reinforcing global prestige for products like Cognac and Armagnac. Producers rely heavily on exports, although trade tensions, including China’s 39% levy on EU brandy and potential US tariffs under Trump, create uncertainty. Amidst challenges, premiumisation and the craft distillery boom drive growth. Over 2,000 craft distilleries in France highlight the rise of small-batch gin, whisky and pastis. While Cognac and Armagnac remain staples, producers are venturing into categories of vodka, gin, rum and even agave spirits (tequila alternatives) with new flavour profiles to meet evolving consumer palates. Meanwhile, declining alcohol consumption fuels the no-and-low trend. France’s spirit producers adapt by blending tradition with modern tastes, embracing luxury branding, mixology and mindful drinking to remain competitive.

Trends and Insights

• Europe leads the world in alcohol consumption. However, steered by health concerns, European drinkers are now cutting their alcohol intake, posing a potential threat to demand for spirits.
• The luxury market drives the whisky business. International distillers compete with local producers to tap into the high-end global demand for premium Scotch and Irish whiskey.
• Major manufacturers are hoarding popular brands. Manufacturers like Diageo and Pernod Richard own and operate many of the world's most popular brands across many varieties of liquor. Diageo alone produces 40% of all Scotch whisky.