Drinking Habits - France

Published by: Mintel International Group Ltd.

Published: Feb. 1, 2008 - 87 Pages

Table of Contents

Issues in the Market

Definition

Beer

Cider

Wine

Spirits & liqueurs

Consumer research

Abbreviations

Market in Brief

Very big, but little sign of growth

Still a wine-loving nation

But things are not what they used to be

Beer is becoming specialised

The French go Scotch

Drink it anytime

France remains an important producer, but globalisation proceeds apace

The off-trade calls the shots

High penetration

But it is still a man thing and an older man thing at that

Boire moindre mais mieux

Catching them young

Internal Market Environment

Key points

Declining per capita consumption

Figure 1: Per capita volume consumption of alcoholic drinks among the French adult population (15+), by type, 2002-07

Figure 2: Consumption of alcohol in last 12 months, by gender and age, 2007

Most countries opting for lower-alcohol drinks

Figure 3: Long-term trends in per capita alcohol consumption in Europe, 1970-2005

Increasing expenditure on soft drinks

Figure 4: Household expenditure on soft drinks, 2002-06

Changing attitudes

Broader Market Environment

Key points

Suppliers’ focus remains on the young, despite an ageing population

Figure 5: Trends French population, by age, 2002-12

Shrinking households shape product offer

Figure 6: Trends in number of households in France, by size, 2000-05

The affluent drink more

Figure 7: Trends in French employment, 2000-05

Economic uncertainty has an impact

Figure 8: Trends in French PDI, consumer expenditure and GDP, at current prices, 2002-12

Who’s Innovating?

Key points

Focus on spirits & liqueurs

Figure 9: New product launches in alcoholic drinks, % by sector, by country, 2007

Figure 10: Trends in new product launches in alcoholic drinks in France, by sector, 2002-07

Increasing premiumisation

Figure 11: Trends in new premium product launches in alcoholic drinks, by country, 2002-07

New product development - beer

Cider

Wine

Spirits & liqueurs

Market Size and Forecast

Key points

Marginal volume growth overall

Figure 12: French volume sales of alcoholic drinks, 2002-12

Figure 13: French value sales of alcoholic drinks, at current and constant prices, 2002-12

Wine still accounts for the bulk of sales

Figure 14: French volume sales of alcoholic drinks, by type, 2002-12

Spirits & liqueurs post greatest value growth

Figure 15: French value sales of alcoholic drinks, by type, 2002-12

What the future holds

Forecast

Figure 16: French volume sales of alcoholic drinks and per capita consumption, 2002-12

Beer

Cider

Wine

Spirits and liqueurs

Factors used in the forecast

Segment Performance

Key points

Beer

Steady 2 billion litres

Figure 17: French volume sales of beer, 2002-12

Value dropping faster than volume

Figure 18: French value sales of beer, at current and constant prices, 2002-12

Figure 19: Segmentation of the French beer market and value share of sales, 2007

Spécialités driving growth

Attracting new consumers by creating new drinking occasions

Potential for low-alcohol beers

Cider

Seasonal and regional nature causes problems

Figure 20: French volume sales of cider, 2002-12

Figure 21: French value sales of cider, at current and constant prices, 2002-12

Wine

From an everyday drink to an occasional beverage

Figure 22: French volume sales of wine, 2002-12

Rosé and white wines increase share at the expense of reds

Growing demand for quality wines fails to compensate fully for falling volumes

Figure 23: French value sales of wine, at current and constant prices, 2002-12

Targeting women for future growth

Spirits & liqueurs

Recovering lost ground

Figure 24: French volume sales of spirits & liqueurs, 2002-12

Generating value growth through premium products…

Figure 25: French value sales of spirits & liqueurs, at current and constant prices, 2002-12

…and new consumers

Active new product development - especially at Christmas/New Year

Market Share

Key points

Large domestic alcoholic drinks industry

Beer

Figure 26: Suppliers’ shares of the volume beer market, 2007

Wine

Spirits

Companies and Products

Brasseries Kronenbourg

Castel

Heineken

InBev

Pernod Ricard

Brand Communication and Promotion

Key points

Tough French advertising restrictions

Figure 27: Main monitored media advertising expenditure on alcoholic drinks, by country, 2005-07

Scottish Courage, Pernod Ricard and Heineken are biggest spenders

Figure 28: Main monitored media advertising expenditure on alcoholic drinks in France, 2007

Channels to Market

Key points

Off-trade dominates volume sales

Figure 29: French volume sales of alcoholic drinks, by sector, by distribution channel, 2002-07

Grocery outlets more important than specialists

Figure 30: French off-trade volume sales of alcoholic drinks, by outlet type, 2002-07

On-trade leads for value sales

Figure 31: French value sales of alcoholic drinks, by sector, by distribution channel, 2002-07

Off-trade takes its biggest volume share in cider and beer

Figure 32: French volume sales of alcoholic drinks, % share by distribution channel, by sector, 2007

On-trade value share is biggest in beer

Figure 33: French value sales of alcoholic drinks, % share by distribution channel, by sector, 2007

The Consumer - Pan-European Overview

Key points

The French and the British are keenest drinkers

Figure 34: Alcohol consumption, by country, 2005-07

French are less home-centred drinkers than Germans and Brits

Figure 35: Indexed attitudes towards eating and drinking, by all adults, by country, 2007

French consumers most willing to pay a premium for quality beer and wine

Figure 36: Indexed attitudes towards shopping, brands and pricing, by all adults, by country, 2007

The Consumer - Alcohol Consumption in France

Key points

Older, male profile creates a challenge

Figure 37: Alcohol consumption in last 12 months, by demographic sub-group, 2007

Beer has the younger drinkers, and turns its attention to women

Wines need to woo younger drinkers - and women

Figure 38: Consumption of beer and wine, by type, by demographic sub-group, 2007

Male-oriented spirits, but whisky is attracting a female clientele

Dark spirits for in-home drinking

Figure 39: Consumption of spirits & liqueurs, by type, by demographic sub-group, 2007

The French are drinking less frequently

Figure 40: Trends in frequency of drinking, 2002-07

Beer and spirits are drunk most frequently

Figure 41: Frequency of drinking alcohol, by choice of drink, 2007

Low-alcohol sector not benefiting greatly from health trends

Figure 42: Trends in alcohol consumption, by type of drink, 2002-07

Consumer Attitudes

Key points

Gin and vodka drinkers have more exposure to on-trade promotions

Figure 43: Attitudes towards eating and drinking, by choice of alcoholic drink, 2007

Sprits drinkers entertain at home

Experimental vodka consumers

Figure 44: Attitudes towards alcohol and health, by choice of alcoholic drink, 2007

Appreciation of quality

Figure 45: Attitudes towards shopping, brands and pricing, by choice of alcoholic drink, 2007

Abstract

The key trend in the French alcoholic drinks market has been boire moindre mais mieux - drinking less but better. The problem is how to extract more money from consumers wanting to trade up but unwilling to pay a lot more for the privilege. Value growth is elusive in a market where volume sales pass increasingly through multiple food retailers, where pressure on prices is most intense. Margins are much higher in the on-trade, but the French are going out less and the traditional French bar with its zinc counter and Piaf on the hi-fi is rapidly disappearing.

Social and cultural changes in France have transformed expectations and perceptions. Wine remains a great Gallic institution, but long lunches are a thing of the past in the modern working environment and wine drinking is becoming an occasional, rather than a habitual pursuit. Women are now customers in their own right and the male orientation of the drinks market needs addressing. The market also has an old profile, except in a very few key segments, despite strenuous efforts to address the under-35s. Social trends are moving against the over-consumption of alcohol and towards healthier living - traditional drinking habits are changing rapidly, with a new breed of drinker demanding quality, novelty, longer drinks and a much improved drinking environment, all at rock-bottom prices.

The countries examined within the Consumer Goods Intelligence series of reports are France, Germany, Italy, Spain and the UK. Mintel last examined alcohol consumption in France in Drinking Habits, Consumer Goods Intelligence, December 2006. Some data have been revised since the previous report due to new information from the trade.

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