Champagne sales in Australia have faced a recent decline after years of growth, yet there remains significant potential for recovery as consumer preferences shift towards premium and drier varieties. In the key cities of Sydney and Melbourne, fierce competition among brands has created intense price wars, particularly within the hospitality sector. Even less well-known producers are securing prime positions, such as Henri Giraud replacing Bollinger as the house pour at a notable Melbourne hotel.
The retail market is also experiencing similar challenges. Laurent Valy, brand development manager for Champagne Lanson, highlighted the aggressive pricing strategies of competitors. The economic downturn, driven by rising interest rates and increasing living costs, has impacted consumer spending, particularly on non-essential items such as Champagne. Australia’s heavy reliance on the non-vintage category, which makes up 88% of total Champagne imports, has left the market vulnerable, particularly as Millennials, who dominate Champagne purchases, have been hardest hit by the financial slowdown.
Despite the current challenges, the downturn may be part of a natural market correction following the pandemic-driven Champagne boom. In 2020, while global Champagne exports dropped by 18%, Australia saw a surprising 11.2% increase in imports. This spike was fueled by consumers diverting funds from cancelled travel plans to premium Champagne brands, resulting in up to 400% growth for some producers. By 2022, imports peaked at 10.5 million bottles. However, this growth was unsustainable, and 2023 saw a drop to 8.9 million bottles as global shipments returned to pre-pandemic levels.
Australia’s Champagne market, although experiencing a decline, remains in the top 10 globally and ranks sixth in export destinations. According to leading Champagne commentator Tyson Stelzer, the market is expected to stabilize at around 10-11 million bottles annually, with steady growth in value as consumers show increasing interest in higher-end varieties such as rosé, blanc de blancs, and vintage Champagnes.
Australia’s overwhelming dependence on non-vintage Champagne, which accounts for 90% of imports, stands in contrast to markets like the United States and Japan. This reliance has resulted in lower average prices compared to other countries. However, recent trends suggest that Australian consumers are beginning to explore more diverse Champagne offerings. The number of producers exporting to Australia has risen from 233 in 2019 to 340 in 2023, with increasing interest in prestige cuvées, low-dosage varieties, and rosé Champagnes.
Kyla Kirkpatrick, owner of online retailer Emperor, highlighted the market’s “two-speed” nature, where both entry-level and prestige cuvées coexist. Although non-vintage Champagnes dominate sales, consumers are increasingly opting for lesser-known brands if the price is right. At the high end, there is growing demand for luxury offerings, even as the cost of living rises.
The competitive environment has led to some challenges for producers and vendors. Price increases driven by rising production and shipping costs have made it difficult for restaurants and bars to offer Champagne by the glass. However, premium cuvées continue to perform well at fine dining establishments, indicating that consumers are choosing to spend more on higher-quality products while reducing the quantity they consume.
Despite the challenges, there is optimism about the future of Champagne in Australia. The market is diversifying, with increased interest in low-dosage and rosé varieties. A recent auction of rare Champagnes by Langtons, expected to generate over AUD$1 million in sales, further highlights the growing interest in ultra-luxury offerings.
While the economic outlook in Australia may remain sluggish in the short term, the long-term prospects for Champagne are encouraging. John Noble, director of Australia’s Champagne Bureau, notes that Champagne’s appeal remains strong due to its emotional connection with consumers. The definition of a “Champagne moment” is evolving in Australia, as consumers continue to elevate everyday occasions with Champagne, ensuring its ongoing relevance in the market.
