The craft beer market - France (2023)

1.2 Craft beers around the world

The global craft beer market

A study by Globe Newswire estimates that the craft beer market will be worth ***.* billion by ****. This concept, present in the United States, is the equivalent of craft beers in the scope of our study. The market is expected to grow at a CAGR of **.*% over the period ****-****. This gives us the following forecasts:

evolution of craft beer market size World, ****-****, in US$ billions ***** estimates Source: ****

The European beer market

According to the brewersofeurope.org **** annual report, the European Union will produce no less than **.* billion liters of beer in ****. This figure is up *** million liters on ****, but down on the **.* billion liters produced in ****.

In ****, there were **,*** brewing companies operating in Europe. in this respect, the sector is experiencing a tremendous increase in the number of breweries, which stood at *,*** in ****. The graph below shows the ranking in **** and the evolution of the number of breweries in the top * European countries.

Number of breweries by European country Europe, **** / ****, in % Source: ****

The number of breweries in Europe is on the rise, and some countries, such as France, are even seeing very strong growth. Generally speaking, the report details that this increase in breweries is ...

1.3 France's fast-growing craft breweries

The craft beer market

In ****, the beer market is estimated at *.* billion euros. Craft beers will account for * to *% of the total market in the same year, bringing sales to around *** million euros (***). This is a recent market, virtually non-existent in France ten years ago, which was booming with solid growth until the health crisis. In ****, the sector experienced a sharp drop in consumption, bringing growth to a halt with the closure of bars and restaurants. Brewers' sales are estimated to have fallen by **%.

craft beer market trends (***) France, **** / *****, in millions of euros Source: ****

Craft breweries: mostly microbreweries

The European Beer Trends report shows the growth in the number of microbreweries (***).

growth in the number of microbreweries France, **** - ****, in units *Production under **** hl Source: ****

Share of microbreweries in national production Europe, ****, in Source: ****

1.4 Foreign trade in beer

There is no specific customs code for craft beers in the international trade nomenclatures. Nevertheless, it is interesting to observe the dynamics of beers as a whole. We use here the data published by French customs, under the following product codes:

******** Non-alcoholic beers, alc. <= *.*% vol[***] ******** Malt beers, in bottles <= ** l[***] ******** Beers made from malt, in containers holding <= ** l (***)[***] ******** Malt beers, in containers > ** l[***]

In France, beer consumption is largely fuelled by imports, which reached ***.* million euros in ****, more than double the value exported over the same year. While imports rose over the ****-**** period, exports fell, widening France's trade deficit for this type of product.

Foreign trade in beer France, ****-****, in millions of euros Source: French Customs Share of different products in French beer exports France, ****, in % of export value Source: French Customs Share of different products in French beer imports France, ****, in % of import value Source: French Customs The focus here is on the ******** category, which accounts for the bulk of imports and exports. In this segment, the main destinations for French exports are the UK (***), the Netherlands and the UK. Main customer countries for French beer exports (***) France, ****, in % of export value Source: French Customs Main countries ...

1.5 Covid-19's impact on beer production and the on-trade

Covid-** and manufacturing activities in France

Beer manufacturing activities are recorded in Insee's NAF nomenclature under code **.**Z: Beer manufacturing. Insee reports on changes in the sales index (***) for these activities during the health crisis and containment in France.

evolution of the sales index for beer manufacturing activities France, August **** - July ****, ICA base *** in **** Source: ****

The sector does indeed seem to have recorded a slight drop in activity over the two months of April and May, but the crisis has not impacted the sector's overall dynamic if we look at the upturn in June ****.

However, these figures should be treated with a certain amount of caution, as the craft beer segment only accounts for *% of the French beer market, so this graph may not be representative of the evolution of craft beer over the period.

trends in the ICA for French public houses

The activities of public houses are recorded in the Insee nomenclature under NAF code **.**. The graph below shows changes in the sales index for activities registered under this NAF code.

evolution of the sales index for drinking establishments France, August **** - July ****, ICA base *** in **** Source: ****

The drop in the index observed over the period of confinement ...

2.1 French beer consumption

Consumption trends in France

In ****, beer consumption in France stood at ** million hectolitres. [***]. This puts France in *th place among European countries with the highest annual beer consumption (***). Moreover, consumption continues to grow, as shown in the graph below. Nevertheless, France remains far less of a beer lover than its European neighbors, ranking **th among Europe's leading per-capita beer consumers.

trends in beer consumption France, **** - ****, in millions of hectolitres Source: ****

French consumption is around ** liters per capita, stabilizing since **** after a period of strong growth between **** and **** (***).

trends in annual beer consumption per capita France, **** - ****, liter per year Source: ****

Buying behavior of French consumers

According to a **** NielsenIQ study, * out of * French people say they drink beer. Beer is particularly popular in June, the month that ushers in summer and the first festive events of the season.

Proportion of French people who drink beer France, ****, in Source: ****

An estimated **.*% of households bought beer in ****, compared with **.*% in ****. What's more, in **** the French spent an average of €**.* a year on beer, compared with €**.* in ****, an increase of almost **% over ** years. Demand for beer is therefore growing, but above all we are witnessing a premiumization of the market: consumers are now ...

2.2 Beer consumer profile

Gender breakdown of beer drinkers

Men are more interested in beer than women, with men ** points more interested.

Proportion of French people who drink beer, by gender France, ****, in Source: ****

Age distribution of beer consumers

Demand for beer is driven by young people, with no less than **% of **-** year-olds interested.

Proportion of French people interested in beer, by age group France, ****, in Source: ****

In ****, the Kantar World Panel press release identified the typical consumers who influence beer demand. In ****, it is the ** - ** year-old segment that is driving the craft beer segment upwards, although it only accounts for **.*% of total volume in the wider beer market.

beer consumption trends among **-** year-olds France, **** / ****, in Source: ****

This demand has the particularity of being in phase with the increased demand for craft beers. In fact, the **-** year-old segment particularly appreciates the new beers resulting from this diversification of the offer. After lagers (***).

Breakdown of beer drinkers by general profile

Half of all French people say they are beer neophytes. Another **% of wine connoisseurs/experts consider themselves beer connoisseurs/experts, and **% of spirits connoisseurs.

Breakdown of beer consumers by type of consumption profile France, ****, in Source: ****

2.3 French preferences: made in France and blondes

In Sowine and Dynata's **** study, beer tops the list of France's favorite alcoholic beverages for the first time since ****, capturing the interest of **% of French consumers. That's **% more than in ****.

**% say they drink craft beers, and **% local beers "made in France".

Beers consumed by the French, by type of production France, ****, in Source: ****

among the most popular types of beer, of course, is lager, favored by almost all beer drinkers, followed by white beer, consumed by more than * out of ** beer drinkers. Beers consumed by the French, by type of beer France, ****, in Source: ****

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

2.4 Consumer willingness to pay

Craft beers are generally more expensive than industrial beers. A national survey conducted by happybeertime in **** looked at the question "How much do you estimate the fair price for the following beers in your town (***)?" and highlighted the following result:

French consumers' willingness to pay for a half of industrial beer is €*.**, whereas a half of craft beer should cost €*.**. This means that beer consumers are willing to pay **% more for a half of craft beer.

However, this statistic differs slightly from city to city, with the price of craft beer assumed to be the most expensive in Paris, while Orléans has the highest price for industrial beer.

There are, however, major disparities between craft beer brands. The bieronomy.com website lists craft beers from €*.** per ** cL, up to €** per ** cL bottle (***).

3.1 Craft breweries in the value chain

Craft breweries are part of a crucial segment of the value chain. In France, beer production has long been the monopoly of a handful of industrial brands with huge production capacities, with the aim of efficiently supplying out-of-home catering and supermarket stocks. Today, new, more confidential players are diversifying the offer to meet a new type of demand. Beer consumption is changing, and this has a direct impact on the value chain.

Suppliers:

For the most part, these are large industrial firms: Malteries Soufflet (***) are just two examples.

Merchants

There are two types of merchant: integrated (***). The role of the merchant is to act as a link between the producers in the sector and the distributors, and they are the key to accessing consumers. For craft breweries, the challenge is to gain greater visibility in a market that is already highly saturated by industrial breweries, whose production capacities are incomparable with those of independents.

Distribution networks

In this segment, there are also networks specializing in foodservice distribution, such as the Heineken group's France Boisson and Distriboissons. This type of distribution is particularly integral to the beer industry, since, in addition to restaurants, private parties and the organization of events such as ...

3.2 French raw materials

The malt industry in France

Malt (***) is the basic ingredient of beer. According to **** statistics from the French Ministry of Agriculture , France is Europe's leading producer of barley, ahead of Germany, Spain and Denmark. It devotes *.** million hectares to the crop, **,*** hectares more than in ****, for a production of *.** million tonnes of barley. This barley is then used mainly by the animal feed and beer industries. It is estimated that * hectare of barley could produce **,*** liters of beer, given that **% of the beer consumed in France is produced locally. [***]

Share of barley production devoted to the beer industry France, ****, in Source: ****

The sector is dominated by * industrial maltsters, Boortmalt having acquired Cargill's malt activities at the end of ****. [***]

Source: ****

Below, we look at the producer price index for malt (***). There is strong growth in the first few months of ****, quickly tempered by a return to relative stability until the end of ****, followed by another sharp rise in prices at the end of ****.

malt producer price index trend France, ****-****, base *** in **** Source: ****

The hop industry in France

France grows over twenty varieties of hops. The Grand-Est region traditionally accounts for almost **% of the area under cultivation. However, in recent years, with ...

3.3 Craft breweries in the region

Number of independent breweries and jobs in the sector

The figures provided by the national union of independent brewers give an idea of the total number of craft brewers. The infographic entitled, Le Marché des Brasseries Indépendantes en septembre ****, reveals that **% of independent brewers are artisans. The infographic reports that France has the largest number of independent breweries in Europe, with *,*** independent brewers throughout the country. So, while their weight in production may not be the greatest (***), their weight in the industrial landscape and employment market is decisive for the sector. The graph below shows the breakdown of jobs in the industry.

Distribution of brewery jobs France, ****, in Source: ****

Together, independent breweries create *,*** direct jobs, accounting for almost **% of jobs in the brewing sector.

Distribution of independent breweries

The infographic also shows the distribution of independent breweries across France.

Source: ****

Financial structure of craft breweries in France

The Lebeartrotter website reports on the breakdown of the various costs of a brewery in France.

Breakdown of brewery cost expenses France, ****, in Source: ****

Craft breweries not yet of interest to manufacturers

Despite a "craftization" of the sector that is already well underway, the French landscape is not yet seeing the kind of ...

3.4 Access to distribution channels

In the national beer market, the main distribution channels are food: supermarkets, hard discounters and retailers will account for **% of beer distribution in ****.

Breakdown of beer distribution by type of channel France, ****, in Source: ****

However, traditional distribution channels (***) are largely closed off by traditional industrial brewers. For example, they impose brewing contracts on the owners of public houses. Faced with this lock-in, microbreweries and craft breweries have to innovate in their distribution channels.

Distribution channels for independent breweries France, ****, in Source: ****

First, there are local shops. Craft beers are closely linked to heritage and culture. Breweries forge strong links with the terroir, and often the locals themselves promote these products that represent them. Likewise, direct sales at the brewery are often the preferred method, most often during tours or tastings organized on the premises. in this respect, almost **% of independent brewers open their doors to the public.

Then there is the growing development of beer cellars; like a traditional wine shop, these specialized stores generally offer a catalog of beers, with a salesperson on hand to advise customers; some beer cellars even offer tastings. Cellar dwellers keep abreast of brewery openings, and source their supplies directly from craft brewers. These wine ...

4.1 Craft beer categories

The advantage of craft beers over more classic, traditional beers is that they offer bold, sophisticated tastes that make them more distinctive. These beers seek differentiation in a return to the culture of beer as a quality beverage. The sector is encouraged by consumers, and this diversification of the current offer is buoying the sector.

In ****, all French brewers produced some *,*** brands of beer. There are several main families of craft beers:

White beers are brewed with pale and wheat malts. Wheat malt doesn't have the husks of barley malt, so coloring matters are lower; Blonde beers are brewed with pale barley malts; Amber and redbeers are brewed with caramel malts, which are more roasted and toasted than lagers; Brown beers are brewed with brown malts, called "chocolate" malts, which are heavily roasted, giving them a strong aromatic potential and colors ranging from brown to black.

Beers can also be classified according to their type of fermentation. According to the SNBI, **% of independent breweries produce top-fermented beers (***). A third of craft breweries produce both Ale and Lager. [***]

4.2 Price ranges and trends

The table below shows a non-exhaustive list of products and their prices as of November ****.

Source: ****

4.3 Supply trends: bitterness, low alcohol, eco-design and quality

The website unepetitemousse.fr has listed the beer trends for ****.

Bitterness

Trends in the beer sector are in line with those in the rest of the alcoholic beverage sector, with the return of the bitterness of vermouth, coffee or tonic. In the beer market, the rise of craft beer has brought hop flavours and bitterness back to the fore, associated with the appreciation of real connoisseurs and a luxury taste. This trend is illustrated by the rise of IPA beers.

IPA sales in French supermarkets France, ****-****, in thousands of hectolitres Source: ****

Low-alcohol and alcohol-free drinks

Another trend is towards drinks with little or no alcohol. This is illustrated by the boom in "Ready To Drink" beverages, which are expected to grow by *.*% between now and ****, according to Data Bridge Market Research. The same applies to the beer market, with the rise of mico-pales-ale and IPA sessions. Non-alcoholic beers are also making inroads on supermarket shelves, with an ever-expanding range on offer.

On the European market, Euromonitor estimates the market for alcohol-free or low-alcohol beers at *,***.* million liters in ****, and *,***.* in ****, representing growth of +**.*%. [***].

On the French market, non-alcoholic beers will grow by a further **.*% in **** to reach ***.* million euros (***), but ...

5.1 Labeling

The DGCCRF (***) can control many aspects of food labelling. Beers are no exception. In the event of non-compliance with regulations, the DGCCRF's inspection services can order the professional to make changes to his or her labeling or production premises, for example. They may also report the infringement to the Public Prosecutor.

Beer labelling must include the following information:

Denomination of the foodstuff (***); Allergens (***); Net quantity of foodstuff; Minimum durability date; Special conditions of storage and/or use (***); Name or company name and address of food business operator ; Country of origin or place of provenance (***); Actual alcoholic strength by volume.

Source: ****

5.2 Criteria for using the terminology "craft beers

To use the expression "bière artisanale" or to choose "brasserie artisanale" as a company name, for example, you need to meet the following criteria:

be registered with the Répertoire des métiers: the brewing business falls within the craft sector. Companies operating in this sector must register with the Répertoire des métiers if they have no more than ** employees; Meet professional qualification requirements: hold a certificat d'aptitude professionnelle or a brevet d'études professionnelles (***) instituted by article L. ***-* of the French Education Code, of at least equivalent level in the trade concerned, or at least three years' professional experience in this trade.

Source: ****

5.3 Administrative procedures and taxes

Like all alcoholic products, beer is subject to numerous regulations. When setting up a microbrewery, here are the main steps you need to take:

Customs: you need to apply to become an "entrepositaire agréé" (***). A plan of your brewery is required, as are the quantities of beer produced and the capacity of the tanks used. DDASS(***), and the company will be asked to carry out a water quality analysis. Local town hall or DRIRE (***). Licenses: If you are a producer/seller, you will need a "small takeaway license" for the takeaway sale of drinks from the *nd group (***). Receiving the public: you need to comply with ERP (***) regulations to receive the public, for tastings or tours, for example

As far as taxes are concerned, the customs authorities are responsible for the tax on beer (***), a beverage that comes under code NC**** of the customs tariff. Calculation depends on production: a "small independent brewery" producing less than ***,*** hectolitres a year will be taxed at €*.** per hectolitre and per degree of alcohol. Above that, the tax is €*.** on beers over *.*% vol. and €*.** on beers below *.*% vol. [***]

6.1 Segmentation of craft breweries

• Brasserie Castelain
• Ninkasi Brasserie
• Brasserie du Mont Blanc
• Brasserie Cap d’Ona
• Brasserie Thiriez
• Brasserie la Parisienne
• La Brasserie Fondamentale
• Brasserie La Débauche
• La Brasserie du Grand Paris
• Brasserie Parisis (Newbeers group)
• Gallia Braserie (Heineken Groupe)
• BAPBAP
• Brasserie de l'Être
• The Piggy Brewing Company
• Brasserie Effet Papillon
• Brasserie Deck & Donohue
• Brasserie de Bretagne
• Brasserie Goudale
• Brasserie Meteor
• Brasserie Licorne
• Brasseries Duyck (Jenlain)
• Brasserie Palm
• Axéréal
• Stella Groupe
• Bière Perle
• Stella Artois (Hanheuser Busch)
• Rince Cochon
• Pelforth Heineken France
• Guinness (Diageo)
• Grimbergen
• Bière Amsterdam (Asahi Brands)
• Brasserie du Montblanc (Duvel Moortgat Group)
• Brewdog
• Newbeer group - Melusine Brasserie
• Find a Bottle
• Coreff Groupe Brasserie
• Lancelot Brasserie
• Brasserie Autre Monde