Hot Drinks in France

Hot drinks value grows whilst volume stagnates

2019 has been a solid year in terms of current value sales for hot drinks whilst volume sales remained stagnant. Despite a significant decline in at-home breakfast consumption, French consumers still very much value starting their day with a hot drink and those hot drinks increasingly tend to be organic.

Towards more organic offerings and fewer promotions

Organic hot drinks are gaining in popularity amongst French consumers, especially organic coffee and tea. This is linked to the growing popularity of organic products in general in France and in the broader Western Europe region, with consumers seeking environmentally-friendlier, locally produced, Fairtrade orientated and natural products.

Nespresso Starbucks alliance hits coffee pods while Banania and Benco’s last factory closes in other hot drinks

In 2019, Nestlé launched its first Nespresso and Dolce Gusto Starbucks fresh ground coffee pods in major French supermarkets and hypermarkets. This launch reflects Nestlé’s global strategy to expand and strengthen its presence and Starbucks’ strategy of expanding into retail.

More sustainability in packaging expected, while major brands will embrace smaller organic brands’ strategies

In 2019 the eco-friendly packaging trend in fresh ground coffee pods further expanded after the success of San Marco’s first biodegradable pods launched in 2018. Lobodis launched new biodegradable vegetal fresh ground coffee pods in summer 2019, including 10 variants of 100% single-origin coffee, with six of these offering organic coffee.

Tea and coffee will continue to grow, while other hot drinks will further decline.

Fresh ground coffee pods is expected to continue to grow in the forecast period both in value and volume terms. However, as more players entered this product during the review period sales are reaching closer to saturation point.

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