Hot Drinks in France

COVID-19 impact on hot drinks

The impact of the COVID-19 pandemic on the French hot drinks market was complex and resulted in some divergent outcomes. In particular, significant differences were noted between the retail and foodservice channels.

COVID-19 country impact

The COVID-19 virus was confirmed to have spread to France on 24 January, when the first European case of COVID-19 was identified in Bordeaux. The first five confirmed cases of COVID-19 in France were all individuals who had recently arrived in the country from China.

Company response

In coffee, the category-dominating leading triumvirate composed of Lavazza, Douwe Egberts and Nestlé all performed well during 2020 despite the pressures created by the COVID-19 situation. One factor supporting these three companies was that they were not negatively affected by the EGALIM law, passed in 2019 to limit the numbers of promotions applied to products per year.

Retailing shift

The main impact of the COViD-19 pandemic on the French retailing industry in 2020 was the significant shifts seen away from store-based retailing and towards e-commerce. The other big winners from the COVID-19 situation among retail channels in France in 2020 were supermarkets, convenience stores, independent small traditional retailers and discounters.

Foodservice vs retail split

France’s consumer foodservice industry had a very difficult year during 2020 as the country’s entire horeca was severely impacted by the COVID-19 pandemic and the official response to it. Specifically, the quarantine lockdown required all hospitality businesses to close their on-trade operations for several weeks from 14 March onwards, while similar measures were enacted in various parts of France later in the year as the second wave of the COVID-19 pandemic took hold among the population.

What next for hot drinks?

From 2021 onwards, positive growth is expected to return to France’s consumer foodservice industry. This includes hot drinks, with robust growth expected as on-trade demand returns to normal levels during 2021 and 2022.

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