The soft drinks market - France

1.2. a fast-growing global market

In ****, the soft drinks market generated total sales of $*,***.* billion worldwide. With sales of $***.* billion in ****, carbonated soft drinks accounted for **% of the NAB market , making them the largest segment.

Breakdown of global sales for soft drinks World, ****, in Source: ****

Global sales of soft drinks will increase at a CAGR of *.*% from **** to ****, while volume sales of soft drinks will grow by *.*% annually over this period.

Global soft drinks market sales World, **** - ****, in billions of dollars Source: ****

Volume of soft drinks sold worldwide World, **** - ****, in billions of liters Source: ****

Traditional CSDs (***) have a very high sugar content, and their excessive consumption leads to numerous health problems, prompting various governments to launch awareness campaigns against these products. Market growth will therefore come from other segments, notably "light" or "zero" drinks, which contain little or no sugar. Indeed, in the soft drinks sector, there has been a significant rise in sugar-free or low-fat products, with a *. *% increase in value to *** million euros in **** for "lights" colas. In comparison, sales of regular colas rose only slightly, by *. *%[***].

1.3. Two paths for the French market

An overview of the soft drinks market

Sales in the soft drinks market France, ****-****, in € billions Source: ****

It's clear that over the past * years, the BRSA market has been growing steadily, reaching sales of *.* 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 of non-carbonated BRSAs, meanwhile, have risen steadily, to an estimated *.** billion euros in ****.

a

The BRSA market saw an increase in sales 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 sales of the BRSA market rising by +*.*%.

The state of the soft drinks market in ****

In France, sales of soft drinks are concentrated around fruit juices(***). While sales of fruit juices rose by just *.*% in value in **** compared with ****, those of colas rose by *.*% in value compared with ****. Overall, the BRSA market grew by *.*% in value in **** compared to **** [***]. Overall, the soft drinks market was worth *.* billion euros in ****, including :

*.** ...

1.4 The impact of the covid-19 pandemic on French consumer habits

The soft drinks market in difficulty, with a drop in at-home consumption

The health crisis has changed the way the French consume soft drinks. Consumption of soft drinks experienced difficulties during the various confinements, as according to a study by FranceAgriMer, the French preferred to more essential food products than non-alcoholic soft drinks, due to a relatively high average shopping basket resulting from an increasing number of meals at home. As a result, sales of soft drinks fell by -*% in the first containment period (***) compared with the same period in ****.

Liquids market in out-of-home consumption

Out-of-home drinks sales index by value France, ****-****, in ICA base **** Source: ****

NAF code: **.**. The chart shows the sales index for liquid-serving establishments: cafés, bars, discotheques and mobile beverage vendors.

It can be seen that sales of liquids fell sharply with the various confinements and curfews, as evidenced by the differences in the sales index between the period February to June **** and February to June ****. Differences in the sales index between October **** to February **** and October **** to February **** are again noticeable.

Sales decline for the major groups

Coca-Cola accounts for **% of the carbonated soft drinks market in France in ****, making it one of the ...

1.5 The global market for sugar-free soft drinks

The sugar-free soda segment is smaller than the traditional carbonated soda segment, which was worth $**.* billion in ****, but it's growing much faster. Sales of sugar-free soda grew by **. *% year-on-year in ****, compared with just *. *% for regular sodas over the same period, making it an attractive segment for soda manufacturers looking for growth.

According to a new report from Million Insights, the size of the diet soft drinks market is expected to reach $*.* billion by ****. It is expected to grow at a compound annual growth rate (***) of *.*% over the forecast period ****-****. There has been a rise in demand for diet soft drinks in recent years due to a shift in consumer preference from high-sugar beverages to healthier low-sugar or sugar-free beverages. Consumers prefer low- or zero-calorie drinks due to growing health concerns, which is expected to drive market growth over the next few years [***].

Global sales of sugar-free soft drinks World, **** - ****, in billions of dollars Source: ****

Although the sugar-free soda market is more dynamic in Asia, America remains the biggest market, with a market share of **% and revenues of $*.* billion in ****.

Sugar-free soda market share by region World, ****, in Source: ****

2.1 Socio-economic determinants of BRSA demand

In July ****, the French National Agency for Food Safety(***) delivered a comprehensive study of French eating habits and lifestyles. This study is carried out every seven years.

There are significant differences in consumption between men and women. The average amount of food consumed by a French person is *.* kg per day, or almost **** kcal, of which *.*% comes from BRSA [***].

Behavioral disparities exist according to age, gender, level of education and region. Adults over **, for example, consume more home-made foods. In addition, individuals with a level of education equal to or higher than Bac+* consume more fruit and half as many soft drinks as others. Inhabitants of large urban areas consume more fish, sweets and fruit juices than those in rural areas (***).

BRSAs are not aimed at all consumers. Some are more likely to consume them than others. A **** study by FranceAgriMer showed that consumption of flat BRSAs is strongly linked to socio-economic factors. Modest households with children in northern France are prime targets. Age is also a determining factor, since consumption decreases with age. [***]

Source: ****

Similarly, consumption of carbonated soft drinks (***).

Source: ****

2.2. French consumer habits

The French have changed their consumption habits. Today, the act of consuming is no longer simply a means to an end, but has become for some the result of a conscious choice. This means consuming organic or fair-trade products. This natural aspect is increasingly demanded of soft drink manufacturers by consumers, particularly after numerous campaigns highlighting the health hazards of their consumption. [***]

For manufacturers, this means developing :

Recipes Communication Packaging

These three elements need to adapt to consumer expectations, offering healthier, more attractive recipes that are evoked in the right way.

Competition from the bottled water market

Following the government's desire to reduce the consumption of unhealthy products (***), which was partly achieved through the introduction of the Nutri-Score, consumers have tended to modify their consumption. Water has become the main substitute for soft drinks.

Bottled water sales France, ****-****, in € billions Source: ****

The bottled water market grew from **** to ****, **** and ****, but declined in **** and ****. When we compare the water and soft drinks markets, we see that the water market is equivalent to **.*% of the soft drinks market [***]. growth in bottled water sales France, ****-****, in The bottled water market experienced a growth peak in ****, with growth of +*.*% compared to ****, as well ...

2.3. The organic and CBD soft drinks market segments: a new Eldorado?

organic consumption trends in France

France, ****-****, billions of euros Source: ****

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, as evidenced by the **.* billion euros generated in ****, an increase of **.*% since ****. These good results put France in *nd place in the European ranking[***].

TheFrench 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 ****, François Gay-Belille, ex-president of Coca-Cola France and now vice-president and general manager of Coca-Cola European Partners, claimed that organic soft drinks accounted for just *% of sales volumes. However, this market is set to grow further in the coming years. That's why Coca-Cola has its ...

2.4. Consumption of sugar-free and low-fat soft drinks

When it comes to drinks containing sweeteners, parents have mixed opinions. Although they allow their children to consume them, they don't see these drinks as healthy, dietetic alternatives to sugary drinks. This ambivalence offers many opportunities for innovation for companies.

The penetration rate of sweetened beverages in French households with children aged * to ** is **%.

So are sweetened beverages a good alternative to sugary drinks? If the figures from the Institut des Mamans are to be believed, "Zero" is not well regarded: **% of parents with children aged * to ** think that they are not dietetic, **% that they are not a healthy alternative and **% that they do not help prevent weight gain. Finally, **% believe they should be subject to the same advertising restrictions and taxes as sugar-sweetened drinks. "Zero or not, same battle! [***]

Poll: "What do you think of sugar-free sodas?" France, ****, in % of respondents Source: ****

However, as children get older, consumption becomes more frequent. In fact, less than **% of children under * consume them episodically, while almost one in two teenagers does.

Consumption of sugar-free soft drinks by children under ** France, ****, in % Source: ****

In short, parents have a paradoxical opinion of drinks with sweeteners. Although they are wary, they still buy them and associate ...

3.1. A highly concentrated market despite a wide range of players

In ****, there were around *** companies specializing in the production of fruit juices, soft drinks or bottled water. However, the *** companies producing soft drinks and bottled water generated almost ** times more sales than fruit juice manufacturers[***].

In the more general beverage manufacturing segment, companies with between * and * employees account for **.*% of companies in operation. However, it is companies with more than *** employees that generate the lion's share of the market's sales.

Number and sales of companies by number of employees France, ****, % Source: ****

In terms of brands, it is possible to identify * major companies that account for almost **% of sales in GMS (***) according to Boisson Sans Alcool:

Coca Cola, Orangina Schweppes, Pepsi Co, Redbull.

Proportion of sales by brand in supermarkets France, ****, in % of sales Source: ****

NAF code: **.**B

Overall, we note that the majority of employees working in the beverage market were located primarily in the Île-de-France and Auvergne-Rhône-Alpes regions, with **** and **** employees respectively. The Centre-Val de Loire region came last, with *** employees.

Source: ****

NAF code: **.**B

In terms of the largest number of companies working in the soft drinks market, first place goes to the Auvergne-Rhône-Alpes region with ** companies. This is followed by the Île-de-France region with ** companies, and ...

3.2. Production dominated by BRSA

Production sales in **** amounted to almost *.* billion euros.[***]

Production in France is essentially made up of waters with added sugar or other sweeteners, with a **% share of production in ****.

Breakdown of soft drinks production by value France, ****, % Source: Agreste PRODCOM code: **.** & **.**.**

This production is carried out in large factories (***), following recipes that are generally highly technical. In most cases, depending on the nature of the drink, food manufacturers add sugar in greater or lesser quantities.

A major trend today is to use only organic or fair-trade ingredients. More generally, manufacturers are trying to reduce the sugar content of their drinks in order to escape the "soda tax" introduced in ****.

In recent years, waters with added sugar or other sweeteners have seen the strongest growth in value terms, with positive growth every year since ****, with production peaking in ****. conversely, fruit and vegetable juices are experiencing production difficulties in France, with recurring negative growth rates. This can be explained in part by the vagaries of harvests, which vary from year to year[***]

trend in annual soft drinks production by value France, ****-****, in % Source: ****

3.3. Distribution is mainly through supermarkets

The distribution network to the end consumer is shown below:

GMS: supermarkets and hypermarkets

Depending on the product, the distribution network will be different. Three different types of player can be distinguished in the production (***) of soft drinks.

Specialists in industrial subcontracting, who generate most of their revenues by producing for third parties, such as CCEP or LSDH (***). Private label specialists (***), who produce mainly for mass-market brands. Own-label manufacturers (***), of which there are relatively few.

Supermarkets and hypermarkets will account for more than two-thirds of soft drinks and water sales in France (***) in ****. E-commerce is also making its appearance in soft drinks and water sales, with *.*%.

Share of BRSA distribution channels France, ****, % of total sales Source: ****

SDMP: Supermarchés à Dominante Marque Propre (***) Proxi: convenience stores

GSA: Grocery superstores

3.4 An overview of the players in the soft drinks market

Players in the soft drinks market

Market share of soft drinks players in volume and value (***) France, ****, in Source: ****

HMSM: Hypermarkets and Supermarkets

One player dominates the soft drinks market in France: Coca-Cola, which had **.*% of market share by volume and **.*% of market share by value in ****. Coca-Cola alone had almost half the market. After Coca-Cola, the other two players are Orangina and PepsiCo, with **.*% and **. *% market share by volume and **.*% and **% market share by value respectively in ****.

Companies present in the carbonated soft drinks market segment in France

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. Finally, tonics and lemonades account for **.*% of the market, with sales of *** million euros [***].

Market share in value of carbonated BRSA players France, ****, in Source: ****

In the carbonated soft drinks segment, Coca-Cola is the market leader in France, accounting for **.*% of market share by value in ****. It should be noted, however, that Schweppes and Orangina are two brands belonging to the Suntory group. ...

4.1. A wide variety of BRSAs

Refreshing beverages in France encompass several product families. The Boissons Rafraîchissantes Sans Alcool (***) typologies encompass these different product families:

Colas, Still and sparkling fruit drinks, Lemonades, limes, tonics, Tea-based drinks (***), Flavored waters, Sugar-free drinks.

Non-alcoholic refreshment beverages comprise two main families: soft drinks and syrups and concentrates.

Two groups make up BRSA:

Soft drinks: concocted from a mixture of carbonated water and various concentrates. These include colas, bitters, tonics, flavored sodas, energy drinks and fruit soft drinks. Still fruit drinks: the composition is simple: water, sugar and a minimum of **% fruit juice. May contain colorants and flavor correctors.

Sodas require three main ingredients for their preparation:

Water: **% to **% water makes up soda, and this water undergoes several types of treatment to soften or deferrify it. Sugar: *% to **% sugar, mainly sucrose (***). Concentrate: mainly sourced abroad.

Fruit juices and nectars are separate products with their own characteristics.

4.2. A range of prices reflecting the diversity of the offer

With the diversity of the offer, there is a consequent price range between the various products. While a bottle of Coca Cola is sold for *.** euros per liter for the *.** L format [***].

The table below shows Carrefour's prices for different types of soft drinks, according to their range.

Source: ****

It's clear that private label products, in this case Carrefour, are sold at prices well below those of our competitors: €*.**/L for private label iced tea. On the whole, major brands enjoy greater consumer interest (***). Some brands, such as Oasis and Coca Cola, are leaders in their segment.

Other, lesser-known brands need to stand out with innovative recipes, different packaging or greater transparency.

Finally, packaging plays an important role in the price at which soft drinks are sold. The smaller the format, the higher the price per liter (***).

4.3 Upmarket offerings: a growing trend

In its annual BRSA report,LSA Conso has identified a number of key trends being followed by manufacturers.

The first concerns packaging, which now uses recycled plastic (***) to meet consumer expectations regarding ocean pollution. PepsiCo uses **% rPET in the manufacture of its plastic bottles. Coca-Cola has decided to introduce a single **cl format for its Fanta, Sprite, Fuze Tea, Tropico and Minute Maid brands, making it easier for outlets and wholesalers to return empty bottles. Once consumed, the returnable bottles are collected and returned to CCEP's Clamart and Marseille plants for cleaning and refilling.

The second project, which is still in progress, concerns the organic and natural BRSA range offered by manufacturers. Coca Cola has decided to launch its own brand, Honest, for organic beverages. Bos, another brand, is focusing on both the organic and fair-trade aspects of its drinks.

Tea drinks, for example, are following the trend towards naturalness and finding their way onto supermarket shelves. With their lower sugar content and naturalness, more and more consumers are turning to these products. Fuze Tea, which arrived on the French market in ****, captured *% of the market in one year and has become the main contributor to growth in iced teas and ...

4.4 Sugar-free soft drinks

"Sugar-free" has replaced "diet" for many calorie-free drinks. Canada Dry and Schweppes, *Up, A&W and Sunkist sodas, produced by Keurig Dr Pepper, now label their diet drinks "sugar-free". (***)

In recent years, drinks labelled "Zero" or "sugar-free" have seen strong growth in the soft drinks aisle. Since the launch of the famous Coca-Cola Zero in ****, Oasis, Lipton Ice Tea, Orangina, Schweppes and Lorina lemonade have all begun to display this sugar-free symbol on their packaging.

As much as we'd like things to be different, diet sodas are not healthy foods. To call them "healthy" is a misnomer. Here are a few things to consider when making your choice.

Sodas with aspartame: Although there has been no definitive link between aspartame and ill health, it's always wise to limit the amount you consume. Look for diet sodas that use alternatives such as stevia or real fruit juice to sweeten their product. Tart sodas: A tasty soda with bite. While this may be great for taste, it's not good for your teeth. These soft drinks contain citric, malic and phosphoric acid, adding acidity to the drinks. These additives remove calcium from your teeth and are linked to tooth decay. Caffeinated sodas: Many people ...

4.5 Partnerships that generate substantial sales

In ****, water and non-alcoholic beverages (***) recorded growth in value four times higher than that of all liquids. This growth was boosted by an exceptional weather effect of almost *.*%, as well as record inflation in the last quarter. In the face of this inflation, private labels have become an increasingly popular choice for BRSAs. They have strengthened their position in categories where they are the only affordable alternative, and have also made headway in categories dominated by leading national brands, such as limes and tea drinks. In ****, it is possible that consumers will opt more for non-essential or high face-value products, due to the downward trend in their purchasing power. This could lead to quantity arbitrage, with a preference for lower-end products.

But that's not all: partnerships with sporting events can also boost beverage sales. Indeed, partnerships between brands and sporting events are often beneficial in terms of sales, although their exact impact is difficult to measure, depending on the brand. Breizh Cola hopes to reap the benefits in Brittany, while Orangina is banking on a national reach in France. As a global brand, Coca-Cola has a wider reach thanks to its historic partnership with the Olympic Games. The next Games will ...

5.1 The "soda tax" reshuffles the deck

Introduced on January*, ****, the soda tax 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. [***] The tax is levied on the final consumer.

Source: ****

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

Additives and caffeine:

In France, legislation on additives in soft drinks is governed by the European regulation on food additives. This regulation lists authorized food additives and their conditions of use. Beverage manufacturers are required to comply with the maximum authorized quantities for each additive, and to mention all additives used on the product label [***].

As far as caffeine in soft drinks is concerned, there is no specific limit in France. However, the amount of caffeine in soft drinks must be indicated on the label in accordance with European regulations. It is also important to note that energy drinks often contain high levels of caffeine and may be subject to specific rules. In terms of energy drink regulations, France introduced specific regulations in **** that imposed limits on the amount of caffeine in energy drinks, as well as on the labeling and advertising of ...

6.1. Segmentation

• Coca-Cola Groupe
• LSDH
• Britvic
• Eckes Granini
• Monin Sirop Groupe
• SPUR Jus
• Unisource
• Verger de Thau
• Vitamont
• SOJUFEL Provence Production
• Sautter Pom Or
• Routin Sirops
• Monte Bacco Group (La Maison Dominici)
• Beam Suntory
• Refresco
• Yumi
• Caprisun
• Joker (Eckes Granini France)
• Pulco (Suntory Group)
• Danao (Danone)
• Tropicana
• Actimel (Danone)
• Maytea (Suntory)
• Fuze tea (Coca-Cola)
• Tropico (Coca-Cola)
• Jomo
• Fanta (Coca-Cola)
• Perrier (Nestlé)
• Badoit (Danone)
• Arizona Beverages
• Biogroupe
• Antartic
• FASHIONRICO FR DRINKS