Champagne sales around the world fell 1.5% to 304 million bottles in 2013, according to data released by the Champagne Growers' Association.
A decline in sales in France and the wider European market outweighed the gains in overseas markets.
Sales in the EU as a whole fell 3.4% to 74 million bottles, and in France sales dropped 2.3% to 167 million. Exports to overseas markets rose 3.2% to 63 million bottles.
However, it could have been a lot worse for the industry, as higher than expected Christmas and New Year champagne sales halved analysts expectations of a 3% drop for 2013.
A record 339 million bottles were sold in 2007 before the global economic and financial crises began weighing on the market.
"The month of December, which accounts for nearly 15% of annual sales, partially offset the decline in sales observed previously. It totals about 42 million bottles, or 8% more than in December 2012," the Comite Interprofessionel des Vins de Champagne said in a statement.
The champagne market is dominated by luxury group LVMH , Moet & Chandon and Veuve Clicquot on top of Dom Perignon, Ruinart and Krug brands, Lanson BCC and Laurent Perrier.
Other champagne-makers also include Vranken and drinks group Pernod Ricard's Mumm and Perrier-Jouet brands.