2025 New Year Champagne Sales Surge Amid Labor Abuse and Tariff Risks

On December 31, 2025, CNBC reported a surge in Champagne sales during the New Year holiday, driven by seasonal celebratory demand [1]. This positive momentum contrasts with the sector’s 2024 slowdown, where shipments declined due to weak consumer sentiment [2], and a 4.3% drop in vintage Champagne prices through November 2025 amid tariff uncertainties [6]. Two structural challenges cloud the industry’s outlook:

1. Labor Exploitation
   : Approximately 120,000 seasonal grape pickers—many foreign or undocumented migrants—face mistreatment [1]. This issue is amplified by the upcoming EU Forced Labor Regulation (effective 2027), which will ban products linked to forced labor and require enhanced supply chain transparency [4].
2. Trade Tariffs
   : The U.S. threatened 200% retaliatory tariffs on EU Champagne in March 2025, responding to proposed EU tariffs on American whiskey [3]. Implementation could drastically increase U.S. retail prices (a key export market), reducing demand.

• The New Year sales surge is a short-term seasonal spike, not a reversal of the 2024-2025 downturn; labor and tariff challenges pose longer-term sustainability risks.
• The EU Forced Labor Regulation will force producers to invest in supply chain audits and labor reform, increasing costs but enabling ethical differentiation.
• Tariff threats could shift U.S. consumer demand to alternative sparkling wines (American sparklers, Prosecco, Cava), which are positioned as more affordable and ethically competitive [5].
• Large Champagne houses may face greater reputational risks than smaller artisanal producers, potentially leading to market share redistribution if consumers prioritize ethical sourcing.

1. Reputational Damage
   : Public awareness of labor abuses could erode consumer trust, reducing demand.
2. Regulatory Costs
   : Compliance with the 2027 EU Forced Labor Regulation may strain smaller producers’ resources.
3. Tariff-Driven Demand Decline
   : A 200% U.S. tariff would make Champagne prohibitively expensive for many American consumers, harming export revenues.

1. Alternative Market Share
   : American sparkling wines, Prosecco, and Cava stand to gain if Champagne prices rise or consumers shift to ethical brands [5].
2. Ethical Differentiation
   : Producers adopting fair labor practices and certifications can attract conscious consumers, gaining a competitive edge.
3. Trade Resolution
   : A U.S.-EU tariff settlement would stabilize exports and prices, supporting long-term demand.

The Champagne industry experienced a 2025 New Year sales surge driven by seasonal demand, but faces significant structural challenges. Labor exploitation threatens reputational and regulatory risks, especially with the 2027 EU Forced Labor Regulation. U.S. tariff threats could reduce access to a key export market, while alternative sparkling wines benefit from the sector’s vulnerabilities. Stakeholders must address labor practices and trade tensions to ensure long-term sustainability.