Beer is one of the world's most popular beverages, with a global market estimated at nearly $300 billion.
Blonde, white, red (amber) or dark, the beer market can be divided into four main categories:
The French have been drinking differently in recent years, and new categories of beer are developing, such as flavored beers, which are between 3 and 5.5°, or craft beers.
And all these beers are distributed via two main channels: supermarkets, hypermarkets and hypermarkets, and cafés, hotels and restaurants.
In this article, we take a closer look at these two main distribution channels. Together, we'll explore current trends in the French market, both in the supermarket sector (GMS) and in the cafés, hotels and restaurants (CHR) sector, and the potential impact on your beer sales.
If you want to boost your beer or cider sales, find out how Sidely can help.
The French consume an average of 33 liters of beer per person per year. A recent NielsenIQ study reveals that over 80% of French people regularly enjoy a good beer, which represents more than four out of five French people.
Despite this strong appetite, France ranks second-to-last in the European beer consumption rankings, meaning that the market's growth potential is considerable, and above all, increasing. In 2023, French beer consumption is expected to increase by over 4%. A trend that has been constantly evolving over the past 5 years.
Among preferences, lager dominates with 23 million consumers, closely followed by white beer with 8 million followers.
This growth particularly benefits French craft beers. It is worth noting that 70% of the beers consumed in France are produced locally.
France also stands out on the international brewing scene: it is Europe's eighth-largest beer producer, and ranks first in both brewing barley production and global malt exports. The brewing sector is a major economic pillar, accounting for 64,000 jobs and 28% of exports, mainly to Europe. This dynamism underlines the importance and vitality of the beer culture in France.
It's the convivial drink par excellence: the vast majority of French people (55%) drink beer when relaxing and sharing with family and friends. In fact, beer is the most popular drink in summer (23%), surpassed only by rosé wine (25%), and the two are France's favorite beverages when the warm weather arrives.
The rise in beer consumption has naturally led to an expansion in supply, with an average of one new brewery or microbrewery opening its doors every day. Indeed, the French brewing landscape has seen spectacular growth: whereas in 2006, France had just 246 brewers, this number rose to 1600 in 2018 and will reach 2300 by 2023, more than quadrupling in the space of just twelve years. At the same time, the number of microbreweries has also tripled.
This growing trend has created a new offering in a market that was previously dominated by a few major brands with products standardized on a global scale. French breweries represent over 10,000 different beer references.
For a long time, beer sold in hypermarkets and supermarkets was mainly industrial. The change in French consumption patterns has boosted craft beers. These are beers with a higher alcohol content, produced by microbreweries or for special occasions (such as Christmas beer). They are also distinguished by their tastes and aromas, which are characterized by local herbs, fruits and cereals.
Speciality or craft beers now account for 7% of the beer market. Industrial or "standard" beers now account for just 20% of sales volumes (compared with 70% 50 years ago), and are declining by 6 to 8 percentage points a year.
So, is craft beer the new sales star? Not so sure.
The vast majority of beers are sold in supermarkets, accounting for three-quarters of total sales. In comparison, cafés, hotels and restaurants (CHR) only account for around 20% of sales. This difference is mainly due to price: on average, the price per liter is 3 times less expensive in supermarkets than in hotels and restaurants.
This situation is further highlighted by inflation. In 2023, sales in the mass-market beer sector rose by +6.1%. However, this financial growth did not translate into an increase in sales volumes, which on the contrary fell by -4.5% according to NielsenQ data. This trend was confirmed by e-commerce and proxies, whose volumes fell by between -2.5% and -3%, again according to NielsenQ.
In supermarkets, new beers are making their entry, such as crafts or artisanal beers, previously reserved for wine merchants. More expensive, often sold in bottles rather than packs, they diversify the range. However, they account for a minimal share of sales. In one of its articles, Thebeerlantern wonders if craft beer in supermarkets is just a loss leader?
This doubt is reinforced by the ranking of the best-selling beer brands in supermarkets in 2023.
According to IRI, the top 10 beer brands sold in supermarkets and hypermarkets are :
In supermarkets, the majority of brands focus on specialty or speciality beers, as these are the most profitable. The ranking above speaks for itself: only Corona and Hoegaarden are not specialty beers.
A particularly telling case in point is the growing success of Goudale, which is seeing its market share increase year on year, with an impressive rise to 10% by 2023. This success is due in particular to the multiplicity of formats (75 cl bottle, 50 cl can, 6 x 25 cl and 12 x 25 cl packs, etc.), which seem to respond to market demand for more flexible consumption options.
Another striking trend in the beer aisle is the growing interest in low-alcohol or alcohol-free options, with a notable increase in sales of +16.4% in one year, according to NielsenIQ.
Non-alcoholic beers (below 1.2° Regie) are particularly difficult to produce, and so remain largely in the hands of the big manufacturers: Asahi, 1664, Leffe, Jupiler... even if some fine breweries, such as BapBap or La terre de bières, manage to distinguish themselves in this sector. In 2023, Tourtel Twist, Leffe blonde 0.0% and others accounted for 5.3% of total beer sales, or 83 million liters.
Faced with this demand, craft breweries are competing with each other by offering light beers, like Ninkasi with its 4% alcohol offering.
And private labels have understood this success. Brands such as Intermarché, Système U and E.Leclerc have not only launched their own ranges of alcohol-free beers, but have also invested in new packaging designs to make these products even more attractive.
National brands, meanwhile, are taking advantage of the "dry janueray" to ride the wave and launch their ranges. The Asahi group, for example, launched its alcohol-free "Super Dry January" campaign in January.
Beer has no reason to envy wine. In 2023, according to IRI data, beer sales in hypermarkets surpassed those of wine for the first time, whose sales declined in both volume and value. Beer accounted for over 50% of alcohol sales in hypermarkets, compared with just 30% for wine.
In response to this trend, brewery chains and brands are setting up increasingly important OPs, notably through the organization of beer fairs. The main aim of these events is to boost sales of local and craft beers, which are enjoying growing success, but whose market potential has yet to be fully tapped.
Other supermarkets and chains have chosen to focus on sustainability and innovation. For example, in La Madeleine, a recently opened Super U is celebrating beer culture by inaugurating a dedicated cellar. Strategically positioned at the end of the main aisle, this cellar features an impressive collection of 400 beer references, all available in individual bottles, offering a unique experience for beer lovers.
Beyond the OPs, it's also the packaging that's adapting. Like Heineken, which adopts soccer colors for the World and European Cups, Kronenbourg has launched a special edition of 33 cl cans of Tourtel Twist, emblazoned with the Olympic and Paralympic Games logo. Available in supermarkets four months before the official opening of the Games, these cans are sold in packs of six or individually. By 2023, 1 in 5 households will have bought Tourtel.
Buying local doesn't stop at the alcohol aisle. According to NielsenQ, 60% of French people show a preference for local beers, while 51% opt for imported beers and 46% for craft beers. This trend has not escaped the attention of store managers and chains when building and optimizing their assortments.
In Alsace, for example, Auchan is promoting Meteor, famous for its IPA and Pilsner recipes, by displaying them on its catalog covers. In Lorraine, the choice is La Délicatesse. In the Île-de-France region, four breweries are particularly highlighted: Rabourdin, located in Seine-et-Marne, Artemus and BAPBAP, both to the south-east of Paris, and Petite Couronne, to the north-west of the capital.
This strategy of highlighting local products is paying off, attracting the attention of major industrial players. A striking example is Heineken, which has taken a majority stake in the Gallia brewery in 2021, with production of 15,000 hectoliters.
This focus on local products is proving to be more attractive than organic to consumers: organic products account for less than 2% of sales, and some of the big names in the industry, such as Fischer, are returning to them.
1/4 of all beers sold in France are sold in the on-trade. Yet beer sales account for over a third of total beverage revenues in cafés/hotels/restaurants, according to the French national beverage federation (FNB). Sales dynamics and societal impacts differ markedly from those observed in supermarkets. While sales volumes in supermarkets fell (-3.8%), discotheques, day bars and nightclubs all reported higher sales volumes in the first quarter.
This finding must be weighed against the fact that bar-restaurants lost volumes. This situation could be attributed to the COVID-19 pandemic and to periods of confinement, which led to the temporary closure of CHRs, thus cutting 35% of the market. Although they have their part to play, inflation has also had an impact on out-of-home consumption. According to snacking.fr, 32% of French people plan to reduce their spending on leisure food, including outings to bars and restaurants.
However, optimism remains high for 2024, marked by two major sporting events: the Euro in Germany and, above all, the Olympic Games in Paris. According to a study in Le Parisien, "we can expect an explosion in certain 'pleasure products' that are among the great classics of sportingevents", including... beer! In London in 2016, average consumption was up 6% thanks to international tourists.
And as Hervé Marziou, independent Biérologue, explains: "Today,perhaps more than ever before, restaurant owners need help from their suppliers. It's also important to train staff and build customer loyalty.What's more,we're witnessing the revival of the beer bar in two ways." That's why we recommend grouped tours between your distributors and brand ambassadors. And that's what we'll be looking at in the next section.
The cafés, hotels and restaurants sector is fragmented, with around 10% of establishments opening and closing every year. Competition is fierce, with many distribution outlets, most of them independent. This is why the majority of sales are made directly.
Nevertheless, as in every market, the big manufacturers are out in force. Big brewers and big distributors share the territory: they can offer lower prices and a wider assortment. Added to this are framework contracts, offering them exclusivity for up to 10 years. According to Happybeertime, 80% of France's cafés-hotels-restaurants have exclusive contracts with Heineken or Kronembourg, and can only tap these beers.
But once again, let's not leave room for negativity. Why should we?
Prospect : send your sales reps out into the field.
Qualify your outlets: qualify each outlet and understand its true sales potential. To do this, we advise you to frame the qualification visit. For example, give your sales staff a ready-to-fill-in evaluation:
Qualify your contacts : understand who your sales reps are talking to during their sales and qualification visits. To do this, we advise you to frame the qualification visit. For example, give your sales reps a ready-to-fill-in evaluation:
Determine the right assortment : thanks to qualification, you'll be able to determine a target assortment to offer.
Get people tasting: brand ambassadors play a key role in product marketing and sales. By organizing joint tours with your distributors, they can organize tastings, present product innovations... and highlight the features and benefits of each item, as well as your brand. Once prospects have been won over, you can hand over to your distributor to take orders.
Work in conjunction with your distributors : note which outlet works with which distributor. Then filter the outlets by distributor, and create prospective tour plans by distributor. In this way, your sales staff can specifically target outlets that work with your distributors but don't yet carry your products, for example. This approach makes it possible to prepare a customized, more effective pitch, and therefore increases the chances of convincing these establishments to start selling your products.
Take the first order: turn your prospects into customers by taking their first order: products x price x quantity. Make a note of all the different types of beer you sell, and include price lists (with potential discounts and promotional schemes). Once you've signed the order form, pass it on to your contact person, distributor and support/ADV. The easiest way to do this is to integrate your ERP with your CRM, for automatic synchronization of information.
