Beer in France

PROSPECTS

Ongoing positive performance expected for beer

Beer looks set to continue its strong progression over the forecast period. Despite the success of the French football team during the FIFA World Cup in 2018, which led to strong volume sales for beer as local consumers enjoyed drinking while watching the matches, beer continued to have low per capita consumption compared with Western Europe, as France is traditionally a wine producing country.

Increasing offer of craft and regional beer

A key factor in the continuous demand is the trading up by consumers to premium dark beer, flavoured/mixed lager and to a lesser extent premium lager. Imported premium dark beer should continue to experience success and be a source of inspiration for local brewers, mainly Belgian ale and weissbier/weizen/wheat beer and Anglo-Saxon IPAs.

Emergence of new beers

Some beers will be more successful than others, often at the expense of mid-priced and economy lagers. Paradoxically, sales are likely to be driven by both stronger and lighter beers.

COMPETITIVE LANDSCAPE

Leading breweries consolidate dominance

Beer is the most concentrated category within alcoholic drinks, dominated by three players; Heineken Entreprise and Brasseries Kronenbourg, which closely compete for the leadership, followed by InBev France SAS. Heineken Entreprise strengthened its leadership due to its Heineken brand, which benefited from frequent updates to its packaging design, including metal beverage cans, in addition to the successful launch of Heineken 0.

Regional players progress faster

The most dynamic players were not multinationals but small and medium-sized players. Although their output remained marginal in terms of total beer production, local breweries enjoyed strong regional popularity as French consumers increasingly showed an interest in craft beer as a way of discovering authentic flavours and supporting local companies.

Focus on “craft” phenomenon

Another major factor in the progression of premium authentic beer in France is the sudden interest by mainstream global players in the niche of craft beer to further popularise this concept – while most were previously reluctant or even sceptical. According to experts, AB Inbev seeks to acquire some regional breweries in France, while Heineken Entreprise is focusing on its House of Beers subsidiary, which specialises in importing and distributing premium and/or craft ale and lager.

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