Beer in France

2020 IMPACT

Off-trade sales of beer regain their fizz thanks to home seclusion

While total volume sales of beer declined in 2020, in off-trade volume terms it was a strong year for beer. A major factor behind this was the disruption to on-trade sales.

Contrasting fortunes for on-trade beer sales

In contrast to the positive performance of the off-trade, on-trade sales of beer plummeted in 2020, with the lockdowns and curfews having a devastating impact. While not as significant as off-trade volume sales, breweries still place a heavy reliance on on-trade sales for profits.

Despite a difficult year the major players rise to the challenge

The three leading players in beer - Heineken Entreprise SAS, Brasseries Kronenbourg SA, InBev France SAS – continued to dominate in total volume terms in 2020. Nevertheless, all three saw their on-trade sales collapse and so were forced to increase their focus on improving their off-trade sales to compensate.

RECOVERY AND OPPORTUNITIES

Slow rollout of vaccine could impede the recovery of on-trade sales

Beer is seen to have a secure long-term future in France, with French consumers becoming increasingly interested in beer, with people looking beyond just the major brands and going in search of what they perceive to be “good beer”. Nonetheless, on-trade sales of beer face an uphill path to recovery having seen huge losses in 2020.

Beer full of potential thanks to increasingly diverse offer

Continuing the trend seen towards the end of the review period, there is expected to a growing demand for non/low alcohol beer over the forecast period, with new products likely to appear following the successful launch of brands such as Grimbergen 0.0%, Leffe 0.

Private label stands to benefit from weakened economy

Unlike in wine, private label has yet to gain a strong foothold in beer with there remaining a preference for branded beer. Nonetheless, as modern grocery retailers continue to give more shelf space to beer at the expense of wine and cider there is growing belief that private label will begin to build a stronger presence.