Hot drinks in France continues to struggle in retail volume terms in 2024, while value is better supported by high prices. Indeed, the rising costs of ingredients and packaging have significantly impacted retail sales of hot drinks, although we are starting to see signs of volume growth creeping back towards positive figures, while value is slowing down overall in relation to lowering levels of inflation.
Each category in hot drinks is seeing positively performing exceptions to the overall sluggish nature, thus helping to support total performance. For example, fresh coffee beans is seeing a robust retail volume growth, whereas fruit/herbal tea is seeing a minimal, sub-decimal volume slump compared to other categories, while other plant-based hot drinks is achieving small positive volume gains.
The key players in hot drinks in France are Nestlé France SA (holding around a third of all company value share) and Jacobs Douwe Egberts FR SAS (holding a quarter of all company value share). Meanwhile, Lavazza France Sarl is the only other company achieving a double-digit value share.
The sluggish retail sales in hot drinks are attributed to a post-pandemic normalisation effect, whereby foodservice has rebounded and affected retail sales in a negative light. While hypermarkets and supermarkets continue to hold the strongest distribution shares, discounters and variety stores have also been growing their shares thanks to their low-cost offerings during a time of economic uncertainty.
On-trade sales of hot drinks are generally faring better than off-trade in 2024, due to the post-pandemic landscape and the rebound in tourism. This was also supported due to the Paris Olympics in the summer of 2024, which attracted a high number of visitors who frequented cafés, bars, and restaurants.
Hot drinks is likely to see some ongoing challenges in line with the issues faced in 2024, namely socioeconomic issues and high unit prices leading to consumer price sensitivity. However, Euromonitor International data indicates inflation rates will continue to fall, which will help stabilise sales over time.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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