The beer market - France (2023)

1.2 The global beer market

Global beer market size

According to Mordorintelligence, the global beer market will be worth $*** billion in ****, and will grow at a CAGR (***) of *.**% over the period ****-****.we can therefore estimate the size of the global market in the coming years:

Global beer market size based on a *.*% CAGR World, ****-****, billions of dollars Source: ****

It should be noted that the COVID-** pandemic caused prices of manufactured and imported products to soar.the availability of raw materials was also limited due to production stoppages and labor shortages in developing countries. However,the market has expanded recently, as consumers have largely preferred home consumption amid the closure of bars, pubs and restaurants. Similarly, sales of beer cans and pints have seen overwhelming demand due to the convenience they offer.

Global beer production

In ****, global beer production was *.** billion hectolitres, compared with *.* billion hectolitres in ****.

Trends in world beer production since **** World, ****-****, billion hectolitres Source: ****

The covid crisis will have had a major impact on this market, with production down by more than *.**% between **** and **** .

Global market breakdown, by market share of leading companies

World market breakdown in **** World, ****, % of total Source: ****

As a result, ** companies capture over **% of the global market. ...

1.3 The size of the French beer market

In France in ****, the beer market is booming. With an **. *% increase in sales, corresponding to *.** billion euros, beer is the most dynamic category in the liquid sector.

In ****, the beer sector in France generated sales of *.* billion euros.

Growth in the beer market is mainly driven by specialty beers, the segment that generates the highest profits under the French General Chart of Accounts (***). In ****, specialty beers, in particular lagers, represented the *th biggest contributor to growth in the FMCG. [***]

Beer sales in France by distribution channel

Beer sales in France in millions of hectolitres France, ****-****, estimates ****-****, million hectolitres Source: ****

Between **** and ****, there will be a net drop in sales volume. From *.** million hectolitres sold in the on-trade in **** to *.** million hectolitres in ****. This represents a **% year-on-year decrease for the on-trade.

Beer's position in French alcoholic beverage sales

Beer sales in France among other alcoholic beverages (***) France, July ****-July ****, billions of euros Source: ****

Beer is France's favorite beverage, accounting for overa third of total alcoholic beverage sales over the period studied .

1.4 French foreign trade

To analyze French foreign trade, we use the database of the French Customs and Excise Department. The code for beer is **** in CPF.

Exports, imports and coverage rate

Evolution of beer exports and imports between **** and ****, and results over the last ** months France, ****-****, millions of euros Source: ****

France is thus a major importer. Total French imports in **** will amount to more than *,*** million euros, i.e. * times more than exports in the same year. It is important to point out that in recent years, imports have increased, while exports have remained stable. This has led to a deterioration in the trade balance.

Main customer countries

(***)

Main customers, in percent France, July ****-June ****, % (***) Source: ****

**% of France's exports are sold to seven countries: Spain(***), the UK, Belgium, Germany and Italy.

Main supplier countries

(***)

Main supplier countries France, July ****-June ****, % (***) Source: ****

It is interesting to note that France obtains over **% of its supplies from * different countries: Belgium, the Netherlands and the United Kingdom. Belgium even accounts for **% of France's imports.

2.1 Trends in alcohol consumption in France

Individual consumption of alcoholic beverages in France

Individual alcohol consumption in France has been declining steadily for over ** years(***), largely as a result of numerous campaigns to prevent the risks associated with its consumption. added to this has been a transformation in drinking habits, with the French increasingly abandoning the consumption of table wines during meals, preferring so-called "recreational" alcohols such as beers or spirits, consumed in festive contexts.

Individual consumption of alcoholic beverages in France France, ****-****, liters of pure alcohol per year and per person aged ** and over Source: ****

there has been a downward trend since ****. Between **** and ****, alcohol consumption fell by **%, i.e. almost *L less in * years.

Individual consumption of alcoholic beverages in France, by type of alcohol

Individual consumption of alcoholic beverages in France, by product France, ****-****, Litre of pure alcohol per person per year Source: ****

in contrast to the general decline in hard alcohol consumption, this graph shows an increase in beer consumption since ****: from *.** liters in **** to *.** liters in ****. The change is small(***) but reflects a real shift in consumption from spirits to beer. This trend will be confirmed in the next section.

2.2 Beer and the French

The French and beer since ****

Household beer consumption since **** France, ****-****, index base *** in **** Source: ****

The index has more than doubled since ****, rising from *** in **** to over *** in ****. The message is clear: the French are increasingly fond of hop-flavored beverages. One of the main reasons for this is marketing and advertising by the major groups.

French consumers' perception of beer

The perception of beer in France is that of a convivial beverage, to be shared(***).

Source: ****

The "beer vs wine" battle

Beer or wine? France, ****-****, % Source: ****

This graph shows that the French are still just as attracted to beer. Over **% prefer beer to other alcoholic beverages (***).

2.3 France's favourite beer brands

The graph below is based on OpinionWay 's survey of French consumers' favorite brands in February ****. These are respondents' answers to the question "Do you like this or that brand of beer?" for each brand, with the percentage corresponding to the proportion of respondents who answered "yes".

Leffe is the favorite beer brand of the French, with **.*% of respondents saying they like it. Carlsberg is the least popular beer brand, with only **. *% of respondents saying they liked it.

French people's favorite beer brands France, March ****, in Source: ****

The graph below compares the approval ratings of different beer brands according to respondents' gender. For all brands, with the exception of Desperados (***), there is a gap of around ** percentage points between female and male respondents. This significant difference between respondents and women can be explained by their different beer-drinking habits: women are less likely than men to drink beer frequently. Comparison of beer brand appreciation levels by gender France, March ****, in Source: Opinionway Marque préférée des Français survey conducted in March **** - Base: representative sample of *,*** French Internet users aged ** and over The graph below compares the level of appreciation of different beer brands according to the age category ...

3.1 The French beer value chain

The French beer value chain is made up of four categories of activity:

Source: ****

In recent years, the French brewing industry has seen a sharp increase in the number of direct jobs, reflecting significant growth in the business. Indeed, the number of direct jobs has almost doubled between **** and ****. Number of direct jobs in the beer industry France, ****-****, Number of jobs Source: ****

Every activity adds value to the economy in the form of "shared value". Shared value is made up of the added value of production, employment, taxes and economic repercussions.

If beer is a good, it leads to an increase in distribution and sales services, which is why in ****, **,*** direct and indirect jobs were generated by the beer market.this was particularly true in the hotel sector (***).

Jobs generated by the beer market: ***** jobs France, ****, in Source: ****

Beer also generates wealth, particularly in the on-trade, where the margin on a beer is much higher than in the retail sector.

Added value generated by beer (***) France, ****, in Source: ****

3.2 Overview of beer production in France

Production trend

Beer production in France rose by *% in **** over the previous year, with *.** billion liters produced. France is one of the only countries in Europe to record an increase.beers made in France account for *% of total European production, which stands at ** billion liters. [***]

To provide an overview of trends in beer production, we have used the Sales Index index - Domestic and export market - Beer production(***)

Sales trends for beer manufacturers in France France, ****-**** Source: ****

Production is thus rising steadily. It's interesting to note that between **** and ****, salesdid not fall, but actually jumped between **** and ****(***) and energy prices.

Beer production trends in France France, ****-****, in millions of hectolitres Source: ****

In ** years, beer production has risen by **.*%, from **.* million hectolitres in **** to **.* million hectolitres in ****. Production fell by *.**% between **** and **** due to Covid. However, production prices have also risen. This is why the total volume of beers produced is falling, but the market value continues to grow(***).

Trends in the French beer industry since ****

Source: ****

3.3 Beer distribution in France: the reign of the off-trade

GMS (***) represent the leading beer distribution channel in France. In ****, **% of beer in France was consumed in food retailing and **% in the on-trade.

In fact, beer sales are still mainly concentrated in the off-trade, i.e. in retail outlets, which have accounted for **% of beer sales since **** and until ****, reducing the share of CHR (***) to just **%.

Breakdown of beer sales in **** by outlet in France France, ****, % share of sales Source: Brasseurs de France - The French market - **** figures Beer sales by outlet in supermarkets France, ****, share in % of sales by value Source: LSA The breakdown of sales in supermarkets is clearly segmented. **% of sales are made in convenience stores. Another interesting point to note is the *% of craft beers purchased via e-commerce.

Value of beer sales consumed in and out of outlets France, ****-****, in millions of US$ source: Agri Canada

By ****, French beer sales are expected to total $**.* billion .

3.4 France's beer leaders

By ****, AB inBev, Heineken and Carlsberg will dominate the French beer market. In French supermarkets, Heineken has a **% market share by value. The Dutch brewer has * breweries in France , producing over *.* million hectolitres of beer a year . [***]

The group also relies on a portfolio of strong brands (***) to dominate beer sales in France. Heineken also controls the France Boissons distribution network, through which it supplies over **,*** foodservice customers.

With * million hectolitres of beer brewed annually at its Obernai site (***), since the group has no brewery in France .

Share of brewing companies, France, (***) France, ****, % (***) Source: ****

Weight of French beer leaders France, ****, billion euros (***) Source: Companies Annual Report, Heinekein Annual Report this graph shows group sales worldwide. In France, Heineken and Carlsberg are the leaders.

4.1 Typology of products on the market

The word beer is a generic term that covers a beverage with multiple realities. It is possible to classify beers by color, or by type of fermentation.

Classification by color is the one used by consumers. The color of the beer depends on the choice of malt and the temperature at which it is kilned. The different types of beer are

White beers: brewed with wheat and pale malts. Blonde beers: brewed with pale barley malts. Red or amber beers: brewed with roasted barley malts. Brown beers: brewed with highly roasted brown malts.

Beers can also be classified according to fermentation:

Bottom fermentation: yeast strains work at **°C. The beers produced are called Pils, or Lager. High fermentation: Yeast strains work at̀ **°C. The beers produced are Ale, and Stouts. Spontaneous fermentation: The beer wort is cooled in the open air so that microbes can carry out seeding. The beers produced are Lambics, Gueuzes and Faros. Bottle refermentation: The beers produced are live beers or beers sur lie. Mixed fermentation: The same beer undergoes both bottom and top fermentation.

Value of beer retail sales by category France, ****-****, in millions of US$ Source: ****

4.2 Different levels of offer positioning

The growing interest in beer consumption by a larger percentage of the population, and the emergence of trends such as premiumization and health, have contributed to an expansion of the offer, with a more fragmented segmentation of the sector, including premium, economy, specialty and non-alcoholic beers. to a more fragmented segmentation of the sector, including premium, economy, specialty and non-alcoholic beers. This breakdown is often referred to as"trade classification", because of its correlation with the marketing positioning of beers.

The nomenclature takes into account

Intrinsic product characteristics Packaging Channel Image

Based on these four criteria, brewers tend to distinguish beers according to the following market segments: budget beers, standard beers, premium (***) beers and special beers.

Budget beers economy beers: those designed to cover the lowest price brackets in the various sales channels, intended for sale in discount stores or supermarkets, not supported by a promotional campaign; with anonymous, unheralded brands, unpretentious packaging and basic quality.

Standard beers these are mainly represented by the best-known national brands, with a medium or medium-low price positioning, channeled through grocery stores, supermarkets and non-specialized premises. These beers are of good quality, but have no particular distinctive features.

premium and super-premium beers premium beers: premium ...

4.3 Beer price trends

Trends in the consumer price index for beer

Annual consumer price index - Base **** - All households - Metropolitan France - Coicop nomenclature : **.*.* - Beers

CPI trend since ****, base *** in **** France, ****-****, index Source: ****

Prices have remained fairly stable over the past ** years. Indeed, since ****, prices have risen by just *% in France. However, there was a spike between **** and ****. At the time, this was due to a sharp rise in taxes on Krnonenbourg, with over **.*% inflation. [***] In ****, with very high inflation in France, beer prices rose by *% in * year.

evolution of the beer producer price index

Producer price index for beer France, ****-****, in index base *** in **** and % of annual variations source : INSEE Producer prices rose sharply in **** and ****, mainly due to significantly higher energy costs. Brasseurs de France warns of the worrying situation of the brewing industry, **% of which is made up of very small businesses (***). Rising costs, particularly those linked to energy, combined with shortages of packaging and raw materials, represent a serious threat to the sector. [***]

Summary of beer prices on the market

The table below summarizes beer prices for different brands and positioning levels:

In France, prices also vary widely from city to city. They are highest ...

5.1 Name regulations

Decree no. **-*** of March **, **** defines the term " beer": the name "Beer" is reserved for the beverage obtained by alcoholic fermentation of a wort prepared from cereal malt, raw materials from cereals, food sugars and hops, substances conferring bitterness derived from the production of beer.the name "beer" is reserved for beverages obtained by alcoholic fermentation of a wort prepared from cereal malt, cereal raw materials, edible sugars and hops, bittering substances from hops, and drinking water. Cereal malt must represent at least **% of the weight of the starch or sugar used. Dry extract must represent at least *% of the weight of the original wort. ***% of the weight of the original wort.

The term "artisan" and its derivatives is defined by article **.III of law no. **-*** of July *, **** on the development and promotion of trade and crafts. According to this text,"only artisans, artisans d'art, master artisans or legal entities registered in the Trade and Companies Register whose managing director is an artisan or artisan d'art for the activity in question may use the word "artisan".may use the word "artisan" and its derivatives in the name, sign, promotion and advertising of their company, product or service."

5.2 Beer labelling

According to EU regulation n°****/**** of October **, ****, certain information is mandatory on beer labels, including:

The name of the foodstuff; Net quantity; Presence of allergens; Durability date; Alcoholic strength by volume; Specific conditions of use; Country of origin; The company name of the operator.

Article ** of Regulation (***) no. ****/**** gives the alcoholic beverage sector a derogation allowing operators to omit information concerning the list of ingredients and the nutritional declaration. However, it is still possible to include them on a voluntary basis.

5.3 Excise duties

Beer is subject to excise duty, an indirect tax levied on the sale of products such as tobacco, alcohol or petrol. This tax is borne by intermediaries, and is designed to raise prices in order to discourage consumers and reduce their consumption (***). Fiscally, this rate is set according to the alcoholic strength of the beers and increased on January *, **** to :

In ****, the amount of excise duty is :

- *.** €/degree of alcohol per hl for independent breweries producing up to ***,*** hl

- *.** €/degree of alcohol per hl for beers up to and including *.*% alcohol,

- *.** €/degree of alcohol per hl for beers over *.*% alcohol [***]

Excise duty revenues in the beer sector France, ****-****, in millions of euros Source: ****

6.1 Player segmentation

• Kronenbourg France
• AB InBev
• Swinkels Family Brewers (Bavaria)
• SAB Miller (AB Inbev)
• Brasseries Duyck (Jenlain)
• Brasserie Licorne
• Brasserie Meteor
• Carlsberg
• Anheuser-Busch InBev
• Heineken Entreprise France
• Malteurope Groupe (Vivescia groupe)
• Brasserie de Saint Omer - Groupe Saint Arnould
• International Beers and Beverages IBB