Champagne And Cognac Face Sobering Shift In Luxury Culture.
Heritage drinks lose momentum as younger consumers rewrite the symbols of status and celebration.
From Aristocracy To Nightclubs
Champagne and Cognac have long functioned as cultural codes rather than mere drinks. In 18th-century France, Champagne was embedded in aristocratic ritual, with its effervescence symbolizing refinement and exclusivity. Cognac’s reputation emerged through meticulous craft and aging, its bottles often exchanged as diplomatic gifts or displayed on the tables of Europe’s elite.
Over the 20th century, Hollywood films, glossy advertising, and the rise of nightclub culture transformed these products into global markers of luxury. A bottle of Dom Pérignon or Hennessy was not consumed casually; it was showcased as evidence of prosperity and access.
From weddings and corporate gatherings to velvet-roped VIP lounges, these drinks became props in the staging of success, cementing their role as shorthand for luxury celebration.
Numbers Signal Cultural Erosion
That role is now faltering. In Q1 2025, LVMH reported Wines & Spirits revenue down 9%, attributing the decline to a slow start for Champagne and Cognac.
Champagne recovered some ground by mid-year, but Cognac continued to weaken, especially in China and the United States. On the surface, these figures may seem like ordinary market fluctuations, yet they point to something deeper: the erosion of cultural dominance.
For decades, Champagne and Cognac thrived on the assumption that no meaningful celebration was complete without them.
The numbers suggest that this assumption no longer holds, as consumers reassess both the frequency of celebrations and the symbols attached to them.
Generational Redefinitions
Generational behavior is accelerating the decline. Research from the IWSR shows that Gen Z consumes around 20% less alcohol than Millennials at the same age (2023 study, US/UK, 6,000 respondents).
Globally, wellness-first lifestyles and “sober curiosity” movements are reshaping how and when younger consumers choose to drink. In the UAE, these dynamics manifest in luxury hotels and restaurants where premium non-alcoholic cocktails and low-ABV options are no longer niche but permanent features of menus.
Drink Dry, a marketplace dedicated to premium non-alcoholic products, now supplies more than 650 venues across the country, confirming that demand is not seasonal or experimental but structural.
For younger generations, alcohol no longer functions as the most efficient status signal. Cultural capital increasingly flows through categories that are both visible and repeatable, such as curated fragrance collections, limited-edition sneaker collaborations, or memberships in exclusive wellness clubs.
The UAE fragrance market, valued at nearly USD 1 billion in 2025 and projected to grow steadily, highlights this shift, with consumers favoring artisanal and personalized scents over generic luxury offerings. These categories allow identity to be expressed daily, in contrast to Champagne and Cognac, which remain tethered to infrequent occasions.
Luxury has moved from episodic indulgence to continuous self-expression, leaving traditional drinks struggling to keep pace.
Cultural Competition On All Sides
The loss of momentum is compounded by competition within the drinks sector itself. Premium tequila has surged with double-digit growth, its narrative of provenance and craft reinforced by celebrity partnerships that attract younger audiences. Japanese whisky has established aspirational positioning through scarcity, cultural heritage, and global acclaim, often selling out before bottles even reach retail shelves.
These categories project an image of modernity, adventure, and cultural depth that resonates with contemporary values of discovery and authenticity.
By comparison, Champagne often feels constrained by ceremonial ritual, while Cognac risks being perceived as a relic of tradition. Their heritage remains powerful, yet heritage alone is insufficient to sustain cultural relevance.
In markets like the UAE, where consumers increasingly invest in fragrances, luxury fashion, and curated experiences, the cultural space once monopolized by alcohol is being challenged by products that more directly reflect personal identity and evolving notions of prestige.
Dubai As A Cultural Frontline
The UAE offers a clear view of how heritage brands are attempting to adapt. The alcoholic drinks market was valued at AED 12 billion in 2023, with Moët Hennessy maintaining leadership in Champagne. To reinforce its relevance, the group opened Les Caves de Champagne at Dubai Duty Free in Terminal 3, a curated retail space dedicated to rare vintages and luxury gifting.
By positioning Champagne within one of the world’s busiest travel hubs, the brand reframed the product as a collectible object tied to cultural discernment and global movement, rather than a default drink for indulgence.
At the same time, Dubai’s luxury landscape is rapidly diversifying. High-end hotels and restaurants have built entire menus around premium non-alcoholic cocktails, mocktails, and alcohol-free spirits, reflecting both local sensitivities and global wellness trends.
Tourists and residents alike are driving demand for niche perfumes and luxury goods that act as daily identity markers. In this environment, Champagne and Cognac face pressure not only from other drinks but from the broader ecosystem of luxury categories that command cultural attention with greater consistency and immediacy.
Rewriting The Messaging
Brand narratives are evolving to respond to these pressures. Hennessy campaigns increasingly emphasize terroir, craftsmanship, and heritage, steering away from imagery tied to nightclub excess. Champagne houses are launching limited vintages framed as collaborations with artists, designers, and musicians, attempting to borrow relevance from adjacent cultural fields.
These shifts acknowledge that consumers no longer derive value from price tags or spectacle alone. They want symbols that reinforce discernment, identity, and cultural belonging. Excess is losing its communicative power, and credibility has become the new foundation for resonance.
Bottom Line
The slowdown in Champagne and Cognac is more than a financial dip; it is evidence of a structural recalibration in luxury culture.
Alcohol is losing its status as the dominant language of celebration, displaced by new generational habits, wellness priorities, and symbols that perform identity on a daily basis. In the UAE, where non-alcoholic luxury drinks, fragrance rituals, and curated experiences are shaping the consumer landscape, heritage brands face an inflection point. Their survival depends on embedding themselves into these evolving cultural scripts, proving relevance through identity and meaning rather than relying on the inertia of ritual.
Without adaptation, Champagne and Cognac risk sliding from cultural centerpiece to nostalgic afterthought.
SourcesLVMH Q1 2025 results – Wines & Spirits down 9%LVMH H1 2025 results – Champagne recovery, Cognac still weakIWSR – Gen Z alcohol consumption lower than Millennials, 2023 studyUAE alcoholic drinks market valued AED 12B in 2023Moët Hennessy opens Les Caves de Champagne at Dubai Duty FreeRise of non-alcoholic luxury drinks in UAE hotels and restaurantsDrink Dry marketplace supplies 650+ UAE venues with premium non-alcoholic drinksUAE fragrance market size USD 0.91B in 2025, projected growth to 2030