Hot drinks in 2024: The big picture
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.
2024 key trends
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.
Competitive landscape
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.
Retailing developments
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.
Foodservice vs retail split
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.
What next for hot drinks?
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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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in France with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in France, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in France report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in France?
- To what extent are health considerations impacting consumption of Hot Drinks in France?
- What are the traditional preferences in Hot Drinks in France? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in France?
- Which are the leading brands in Hot Drinks in France?
- How are products distributed in Hot Drinks in France?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in France
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in France
KEY DATA FINDINGS
Volume sales creep back closer towards positive figures thanks to lowering inflation levels
Fresh coffee beans is the winner, seeing robust value and volume growth
Nestlé, Jacobs Douwe Egberts, and Lavazza remain the three key players
Ongoing sales expected, in main thanks to fresh coffee beans and baseline demand
Packaging regulations pose a notable threat for the future of fresh ground coffee pods
Do you prefer your coffee flavoured or cold?
Tea in France
KEY DATA FINDINGS
Tea continues to face volume challenges due to high prices and lower levels of at-home consumption
Only fruit/herbal tea is relatively spared in volume despite the ambivalent results of organic products
Lipton and Twinings remain in tight competition
Slow sales expected, with both opportunities and challenges ahead
Les 2 Marmottes tipped as one to watch
Further alternatives to traditional tea expected, notably cold infused tea and CBD tea
Other Hot Drinks in France
KEY DATA FINDINGS
Other hot drinks in a volume slump, mainly attributed to the poor performance of chocolate-based flavoured powder drinks
Other plant-based hot drinks offer healthier options, despite somewhat “old-fashioned” image
Nestlé retains its lead with Ricoré and Nesquik, while Nutrial is tipped as one to watch
Sugar bashing will continue to affect sales of chocolate-based flavoured powder drinks
A stronger focus on healthier options is needed
Local and sustainable options could also attract consumer attention
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Hot Drinks research and analysis database.
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