The lemonade market - France

1.2 Steady growth in lemonade sales worldwide

The global lemonade market is estimated to be worth **.* billion USD in ****, with sales expected to grow at an annual rate of *.*% to reach **.* billion USD in ****. Global consumption of lemonade is therefore on the rise. This increase may be associated with the rise in the world's population, since lemonade is a beverage that is already present on most continents.

Sales volume of carbonated soft drinks World, ****-*****, in millions of liters Source: ****

North America held the largest market share, at **%, in ****. This is due to increasing public and commercial funding for research and development in this region. Growing health consciousness and understanding of the benefits of a healthy lifestyle will boost demand for natural beverages such as lemonade in the region, driving market expansion. The use of lemonade as a cool drink has increased over the years, particularly during the summer, and its demand is set to continue growing. Over **% of high schools in the United States are equipped with vending machines offering soft drinks to children, raising growing concern about the ease of access to these beverages, which are major contributors to the growth of the lemonade business.

Lemonade market share by region World, ****, in Source: ****

In terms of ...

1.3 A struggling French market

An overview of the soft drinks market Sales in the soft drinks market France, ****-****, in € billions Source : LSA Conso, LSA Conso, LSA Conso, LSA Conso, LSA Conso It's clear that over the past * years, sales in the soft drinks market have been growing steadily, reaching *.* billion in ****. Overall, with the exception of **** and ****, sales in the carbonated BRSA market have risen fairly steadily, to an estimated *.** billion euros in ****. Sales in the non-carbonated BRSA market have risen steadily, to an estimated *.** billion euros in ****. a The BRSA market sales trend showed an increase in growth in ****, up +*.*% on ****. This is partly due to the strong increase in sales in the non-carbonated BRSA market, +*.*% compared with ****. The biggest drop in the evolution of BRSA market sales is seen in ****, with an evolution of *.*% compared to +*.*% in **** (***). Finally, there is some recovery in ****, with BRSA market sales up +*.*%. Lemonade's place among soft drinks

é

The carbonated soft drinks market is estimated at *.** billion euros in ****. Colas account for **.*% of this market, with sales of colas in France reaching *.** billion euros in ****. Next come other sodas and soft drinks, which account for **.*% of the carbonated soft drinks market, with sales of *** million euros. ...

1.4 France's foreign trade

In the le kiosque finance database, lemonade is recorded under :

HS code ******** - Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavored, directly consumable as such as beverages

This site reports the trade balance below. It does not concern lemonade alone, but is nonetheless a good indicator of the external market for lemonade. We can see that in ****, the trend has reversed: the trade balance was in surplus between **** and ****, but in ****, imports exceeded exports, with a total of *** million euros in imports versus *** million euros in exports .

Trade balance for water-based soft drinks France, ****-****, in thousands of euros Source: ****

The chart below shows the share taken in exports by the various customer countries, in terms of the value of beverages exported.

Main customer countries for carbonated water-based beverages France, ****, in Source: Le kiosque finance Exports are primarily directed to European countries, but **% of beverages exported by value are destined for the North American market. As for imports, France is mainly a customer of its European neighbors. Breakdown of countries supplying carbonated water-based sweetened beverages France, ****, as % of total Source: Le kiosque finance This breakdown gives us a rough idea, as we can ...

2.1 A highly seasonal market

Because of its refreshing character, the lemonade market is very dynamic during the summer months of July and August: the market is therefore seasonal. The graph below illustrates this trend:

Search frequency for the keyword lemonade on Google France, ****-****, index *** (***) Source: ****

The results reflect the proportion of searches for a given keyword in a specific region and for a specific period, in relation to the region with the highest rate of use of this keyword (***). Thus, a value of ** means that the keyword was used half as often in the region concerned, and a value of * means that the data for this keyword is insufficient.

Lemonade has an image as a refreshing beverage that is readily consumed in hot weather, so the collective imagination associates it with summer. Demand is therefore seasonal, and lemonade is most popular when temperatures are high.

2.2 Hydration, a key factor in demand for non-alcoholic beverages

Reasons for consuming BRSA

According to a study by Kantar, the refreshing qualities of non-alcoholic drinks and juices top the list of reasons for consumption. This shows the potential of lemonades, whose tangy, sweet flavor makes them a popular choice for quenching thirst, especially during the hot summer months.

Reasons for consumption of BRSA and juices France, ****, in Source: ****

Sales of soft drinks

If we consider the number of liters purchased by the French according to beverage type, we can see that lemonades rank *th after colas, juices, fruit soft drinks, iced teas and syrups. Colas and similar beverages account for the bulk of sales, with total sales of *,*** million liters, juices *** million liters, iced teas *** million liters and syrups just *** million liters. For lemonades, sales amount to *** million liters in ****. Sales of soft drinks (***) France, ****, in millions of liters Source: ****

2.3 A demand for healthy, natural products: drink better

The organic market

In ****, **% of French people consumed organic food, and this market, which is no longer a niche, is reaching more and more people which is proven by the **.* billion euros generated in ****, an increase of **.*% since ****. These good results put France in *nd place in the European ranking [***].

The French are paying attention to their sugar consumption, with **% of those surveyed by Ipsos saying they want to reduce their intake.

trends in French sugar consumption (***) France, ****-****, kg/capita/year Source: ****

We can see that sugar consumption has been falling slightly in recent years, in line with the French desire to eat less of it. This graph does not take into account sugars naturally present in foods, such as fruit, so actual consumption is higher, but it is not specifically this type of sugar that the French are seeking to reduce.

Organic soft drinks

In recent years, the BRSA segment has been challenged by stricter regulations (***) and changing consumer attitudes. Indeed, the pleasure associated with sodas and other non-alcoholic soft drinks is increasingly tarnished by the negative image of sugar and the artificial origin of ingredients. Consumers are still looking for freshness, but they want to drink better, so ...

3.1 A value chain polarized by producers

The market is structured around the producer-bottlers who make the lemonade. These producers often market their products on a very local scale. Private labels, on the other hand, call on subcontractors who often specialize in the production of BRSAs in general. Finally, beverage retailers are also involved in B*B distribution, but these players are not specific to the lemonade market. [***]

Several producer profiles define and polarize the market panorama:

Small lemonade makers: often artisanal production, highly localized, with traditional know-how (***); Leading lemonade manufacturers, found in supermarkets and export markets (***); Specialized BRSA plants: production subcontractors for private labels and supermarkets; Breweries that also have BRSA production units: their production is destined for restaurants and/or retailers (***);

3.2 French lemonade production

The traditional and artisanal lemonade market in France is full of producers offering quality refreshing drinks. A table of French lemonade producers can be consulted on the Keldelice website. The following Businesscoot-processed table highlights the different producers and their locations. It can be seen that lemonade production is spread across various regions of France, with the Grand Est, Bourgogne Franche Comté, Occitanie and Auvergne Rhône Alpes among the notable regions where production is mainly located .conversely , Normandy, Pays de la Loire and the PACA region have no lemonade producers listed on the Keldelice website.

The site doesn't mention the production site of Lorina, the best-known brand in France. Lorina lemonade is produced at several sites in France. In fact, the brand has three production sites strategically located throughout the country. The first site is in Munster, Alsace, where the brand originated. This is where Lorina began its adventure, producing its lemonade according to an authentic recipe handed down from generation to generation. The other two production sites are located in Amboise, in the Centre-Val de Loire region, and in Portes-lès-Valence, in the Auvergne-Rhône-Alpes region. These different sites enable Lorina to meet the growing demand for its lemonades, while ...

3.3 Major recent operations and investments

The table below reports on the main transactions and investments since ****, which has seen major changes for the market leaders.

While there have been no notable operations or investments since ****, we can nevertheless note this news item: Hugo Sublet, the director of Champagnole-based Imagram, which specializes in the production of Elixia artisanal lemonade, was elevated to the rank of Chevalier de la Légion d'Honneur in ****. This distinction was awarded to him by the French Ministry of Agriculture and Food Sovereignty, in recognition of his remarkable achievements. The man expresses his pride in having received this distinction and attributes it to the development and maintenance of their artisanal and traditional lemonade business, as well as to the image of France and French know-how that they convey internationally. This recognition underlines the commitment of Hugo Sublet and his company to promoting quality lemonade, highlighting France's culinary heritage and traditional know-how. [***]

4.1 The competitive landscape

Market segmentation by brand

The lemonade market is segmented by brand as follows:

The leading brand: (***) ; Soda brands that produce lemon-based sodas (***) Private labels (***); Private labels (***). [***]

The following ranking lists the best soft drink launches, and is based on sales during the first three launch periods, according to manufacturer data. Among the best launches are several tonics and lemonades, such as Schweppes Pink Tonic, and new launches by Lorina, the market leader in lemonade.

Interestingly, this ranking includes new brands such as Kyo Kombucha and La French. Although the brands of the major groups occupy the first four positions in this Top **, the other places are occupied by smaller players such as Lorina. This demonstrates the presence of various companies and the emergence of new players on the market, bringing interesting dynamics and increased competition.

Sales of the best alcoholic beverage launches in supermarkets France, ****, in thousands of euros Soruce : LSA Conso

Lorina is a company that has brought a premium touch to the classic recipe of sparkling water, lemon juice and sugar, which had become very common thanks to the private labels (***) that were the main players. Since the start of the health crisis, this segment, which will account for ...

4.2 Price typology

Supermarket prices

This table gives an indication of the prices of lemonade found in supermarkets. If possible, the table also indicates the nutri-score. The nutri-score is a five-level nutritional labeling system, ranging from A to E and from green to red, based on the nutritional value of a food product

Manufacturer prices

As the manufacturers' segment (***) than that distributed in supermarkets.

Nevertheless, we have listed a few products:

Organic lemonade, Cap Dona brewery; Organic lemonade, L'Abeille Limonade bio La délicieuse, brasserie d'Olt ; Limonade artisanale La lutine, Atelier de la pépie;

5.1 Regulation could harm the market

Regulations on soft drink ingredients are a factor strongly impacting market demand.

For example, the new soda tax, determined according to the proportion of added sugar in the drink in question, came into force on July *, ****. This tax also applies, but to a lesser extent, to sweeteners. According to a BFMTV investigation, following this decision, producers have drastically reduced the level of glucose in the composition of their drinks. [***]

Breizh Cola, for example, has reduced the sugar content of its one-liter bottle by ** grams. According to the president of Phare Ouest, the company that owns the brand, the reduction in the amount of sugar in the various Breizh Cola brand drinks should enable the Breton company to pay around * centimes less tax per *.*-liter bottle.

This change in regulations has a definite effect on production costs, as companies in the sector have to modify their production processes and the ingredients used to adapt to the new regulatory constraints.

5.2 The soda tax

The soda tax, which came into force on January*, **** and will be refined in ****, aims to limit the consumption of sugary drinks in France. It applies to fruit juices with added sugar, sweetened waters and soft drinks, whatever their distribution channel, and is charged to the end consumer.

Source: ****

This tax is a threat to beverage distributors, but it seems to have been accepted by consumers. [***]

6.1 Segmentation

• Geyer Frères (Lorina)
• Elixia
• Rième Boissons
• Sidel (Tetra Laval Groupe)
• Carrefour Groupe
• E.Leclerc
• Monoprix
• Auchan Hypermarches