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Champagne sales have dropped to their lowest point in 25 years, with industry professionals pointing fingers at Generation Z as the cause of this decline.
Champagne is famous as the ideal beverage for celebrations; however, amidst all the festivities cost of living Given the crisis and the unpredictable political landscape in Britain, is there genuinely no reason for celebration?
Clearly not, since customers are currently opting for less expensive options instead of purchasing a bottle of champagne.
Last year, approximately 22.3 million bottles of sparkling wine were exported to Britain, marking the lowest figure since 2000, when only 20.5 million bottles were brought into the country.
This considerable drop in sales has led to a notable rise in prices, with the cost of a bottle jumping by 25 percent over just the past three years. At numerous large stores, customers may find themselves paying upwards of £40 for champagne nowadays.
It’s not unexpected that sales of alternatives like Prosecco have reached an ‘all-time high’. Waitrose A bottle of Waitrose Blueprint Prosecco can be purchased for only £6.39.
Certainly, in 2024, sales figures reached 660 million bottles of Prosecco along with over 114.5 million bottles of Cremant, which serves as a comparable substitute.
However, while some attribute the decline in champagne sales to increasing costs, others point fingers at Generation Z’s ‘culture of abstaining from alcohol’.
Sarah Montano, a Retail Marketing Professor at the University of Birmingham, says young people have brought about a boom in the zero per cent alcohol market, which could too be affecting champagne's sales.
'"Generation Z is drinking significantly less alcohol compared to earlier generations," she stated."
'Socializing habits, mental well-being, healthy living practices, and the expense associated with going out for drinks — these elements are all influencing individuals' alcohol consumption behaviors.'
The 'Generation Z' is often referred to as the "sober-curious generation," and I believe that when we examine sales trends, the market for non-alcoholic beers and wines is experiencing significant growth.
For example, consider champagne; currently, Nozeco (a non-alcoholic sparkling wine) is quite popular. The market for this product stands at around £380 million and has the potential to increase significantly, possibly reaching as much as £800 million within the coming years.
Professor Montano additionally pointed out that the continuously rising cost of champagne is another factor leading to the decline.
'Truly, champagne is rather pricey, so you wouldn’t simply toss it into your shopping cart due to its high cost,' she remarked.
'Prosecco and similar wines such as Cava have significantly boosted their status as a budget-friendly choice compared to champagne. These options are simply more economical.'
Champagne is quite distinctive—it’s reserved for celebrations. It’s not common for individuals to routinely uncork a bottle following a tiring day of labor.
It's a festive beverage that will always hold its spot, yet it's facing some challenges right now.
Increasing costs have not only resulted from declining sales; champagne producers have also seen their expenditures rise over the last few years.
For example, grapes—a crucial component in both wine and champagne—are currently priced at nearly £6 per kilogram. Notably, each bottle of champagne requires a minimum of 1.2 kilograms of this ingredient.
Fuel, salaries, general merchandise, and interest rates have similarly gone up during this timeframe, forcing businesses to increase their pricing.
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