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Summary
The rise of non-alcoholic spirits in France: a growing trend
The global market for non-alcoholic spirits has grown significantly, increasing by 32.7% in 2020, and the broader "no-low" (alcohol-free or low-alcohol) market is expected to grow at an annual rate of 8% through 2025, according to IWSR. In France, the non-alcoholic spirits sector grew by 13% in 2021, and the trend is expected to continue at a rate of around 10% a year to 2025.
These trends are fuelled by factors such as "dry January", health considerations and the rise of mocktails, particularly among younger generations who consume less alcohol than before. In fact, around 25% of Europeans over the age of 15 choose not to consume alcohol, and the share of non-alcoholic beverages in French budgets will reach over 40%. French non-alcoholic beverage production fell by 9.5% in 2020, indicating a contraction that year.
Despite this, France's trade balance for non-alcoholic beverages turns positive in 2021, with a surplus of $12 million. The non-alcoholic spirits market continues to attract both traditional spirits companies and new startups, using various production techniques to mimic alcoholic beverages without the alcohol content.
While alcohol-free beers lead the way with 3.8% of beer and mixed drinks sales, they show substantial growth, marked by a 23.6% increase in value by 2021. This indicates wider acceptance and demand for non-alcoholic versions of popular spirits such as whisky, rum and vodka, which could mirror the success of their alcoholic equivalents. With the no-low market set for significant growth, consumer preferences are shifting towards quality rather than quantity when it comes to alcohol consumption.
With both traditional players and start-ups entering the market, booming demand is being met by a range of offerings. The non-alcoholic spirits sector has grown not only because of the diversity of the offer, but also because of the tax advantages enjoyed by alcoholic beverages, which do not apply to them.
Overall, these trends indicate that the French market is ready to embrace non-alcoholic spirits, with consumer demand influenced by health considerations, the need to reduce consumption, and the need for a new range of alcoholic beverages.e by health considerations, changing social norms and a wider range of options to suit a variety of tastes and occasions. This represents an opportunity for market players to capitalize on the growing inclination towards alcohol-free options.
Key players in the non-alcoholic spirits market
The non-alcoholic spirits market, a burgeoning niche within the wider beverage industry, has seen the emergence of innovative start-ups and traditional spirits giants navigating the space with distinct strategies and product offerings. This chapter looks at several companies at the forefront of the non-alcoholic spirits revolution.
- seedlip: The pioneer of alcohol-free spirits
Founded in 2015 by Ben Branson in the UK, Seedlip has positioned itself as a pioneer in the non-alcoholic spirits category. It caught the market's attention with its first offering, Seedlip Spice 94, which quickly became a hit in the famous London retail store, Selfridges. Seedlip's early success showed that the market was ready for high-quality, alcohol-free alternatives without compromising on taste.
- diageo: From world leader in spirits to alcohol-free innovator
Diageo, known worldwide for its extensive portfolio of alcoholic beverages, has ventured into the field of alcohol-free drinks, perhaps anticipating potential changes in consumer behavior. Formed from the merger of Grand Metropolitan and Guinness Plc, Diageo has shown its interest in this category by acquiring a stake in Seedlip, demonstrating the company's commitment to diversifying its offering and remaining relevant in a rapidly evolving market.
- pernod Ricard: Alcohol-free options to adapt to change
Pernod Ricard, one of the leading names in wine and spirits production and distribution, has been a driving force in the alcohol industry. By teaming up with British brand Ceder's to offer consumers a range of alcohol-free spirits, Pernod Ricard has embarked on a strategic move to penetrate the non-alcoholic beverage segment.s ability to adapt and respond to new consumer trends.
- William Grant & Sons: a heritage brand responding to modern demand
William Grant & Sons has a rich history dating back to 1886, and a reputation founded on the manufacture of premium Scotch whisky and other spirits. In response to changing consumer preferences, the company launched its own non-alcoholic spirits brand, Atopia, in December 2020. This initiative represents the fusion of tradition and innovation, as the company leverages its distilling expertise to meet the needs of a modern audience seeking alcohol-free choices.
- oSCO: Local passion meets market opportunity
Founded in 2021 in the south of France, OSCO is a testament to entrepreneurial spirit and market intelligence.
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Inforamtion
- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 09/06/2022
Summary and extracts
1 Market overview
1.1 Definition and scope of the study
Non-alcoholic spirits are drinks that imitate the taste of traditional spirits. The latter are defined as alcoholic beverages obtained by distillation, maceration or infusion of agricultural raw materials. These manufacturing processes distinguish spirits from alcoholic beverages produced by fermentation such as beer, wine, or cider. According to the European legislation, a spirit known as classic has an alcohol content of 15° and more, while the alcohol content of non-alcoholic spirits must be less than 1.2% in France. Among the spirits, there are for example whisky, rum, vodka or cognac whose popularity depends on the culture and history of each country.
Globally, the non-alcoholic spirits category grew by 32.7% in 2020. In addition, the "no-low" market, comprising alcoholic beverages with little or no alcohol, is expected to grow at an annual volume rate of 8% by 2025 in the major alcohol consuming countries.in France, the market for non-alcoholic spirits grew by 13% in 2021, and is expected to grow at around 10% per year until 2025. Non-alcoholic beers, which have been on the market longer, account for 3.8% of beer and mixed drinks sales, growing in value by 23.6% in 2021.
Driven by trends such as dry January and mocktails (non-alcoholic cocktails), the French market is growing with the launch of new products by traditional players, but also the arrival of new entrants. In addition, non-alcoholic spirits are gradually gaining popularity in wine shops, bars and supermarkets.
1.2 The global market for non-alcoholic spirits
The non-alcoholic spirits market is part of the larger "no-low " (***), no-low will grow at an average annual rate of *%.at an average annual rate of *% between **** and ****, while the alcoholic beverage market will only grow by *.*% per year over the same period.
No-low market size in ** key countries ****-****, US$ billion Source: ...
1.3 The national non-alcoholic spirits market
The market for non-alcoholic spirits is still fairly new, so unlike the spirits market whose size was around * billion in **** (***), the order of magnitude, for the market studied is in the order of several tens millions of euros.
In addition, the economic activity related to non-alcoholic spirits is recorded under the ...
1.4 Imports and exports
Because the non-alcoholic spirits market is so new (***), excluding fruit, nut or vegetable juices in reference ****."
In exports, France's top six partners are European, with the United Kingdom occupying an important place (***). This can be explained by the fact that the UK is a fairly mature market for non-alcoholic spirits, so ...
2 Analysis of the demand
2.1 The health issue in alcohol consumption, an advantage for non-alcoholic spirits
Since the ****'s, alcohol consumption in France has decreased overall, favouring certain alcoholic beverages at the expense of others. This graph shows a radical change in consumption patterns: the French prefer quality to quantity. Thus, the consumption of low-quality, inexpensive everyday wines has been divided by almost ten, while the consumption ...
2.2 Interest in spirits combined with the emerging mocktail trend
The Sowine/Dynata **** Barometer gives a general idea of the habits of the French regarding the consumption of alcoholic beverages. In particular, it sheds light on the five favorite alcoholic beverages of the French, with wine and beer in first place as they are cited by nearly half of the respondents. ...
2.3 Products used mainly as substitutes
Low-alcohol and non-alcohol beverages are praised for their lower health impact, but also for the simple fact that they are not alcoholic. In fact, consumers cite avoiding the effects of alcohol as a primary reason for consuming products.
Reasons consumers buy no-low products World, ****, % Source: ****
Thus, no-low products today are primarily ...
3 Market structure
3.1 The organization of the French market for non-alcoholic spirits
Non-alcoholic spirits are produced in the same way as alcoholic spirits and are then dealcoholized. The structure of the non-alcoholic spirits market is therefore similar to that of alcoholic spirits.
The French spirits industry is made up of several types of players who are involved in one or more stages of ...
3.2 French production of soft drinks
By selecting the code ******** corresponding to the category "Non-alcoholic beverages not containing milk fat (***)", the graph below is obtained. It shows a relatively stable French production of this type of beverage between **** and **** and a contraction of *.*% in **** resulting from the health crisis.
Evolution of the production in value of soft ...
3.3 Distribution of non-alcoholic spirits in France
The distribution channels for non-alcoholic spirits are similar to those for alcoholic spirits. Most of the sales to consumers are made through mass-market retailers, mainly for cost reasons.
Breakdown of sales of spirits and champagne in mass distribution by channel France, ****, in % Source: ****
In supermarkets, whiskies, aniseed-flavored spirits and rums appear ...
3.4 Traditional players alongside young companies
In the non-alcoholic spirits market, there are two categories of players: startups and young companies recently launched solely in the non-alcoholic spirits sector, and traditional players in the spirits market who are trying to position themselves in the buoyant non-alcoholic drinks niche.
3.5 The importance of bars and online sales in the emergence of the non-alcoholic trend
The trend of non-alcoholic beverages is already established among French consumers since **% of them already buy non-alcoholic beer. Non-alcoholic beer represents *% of sales in France and is growing strongly.
Even if there have been non-alcoholic drinks for a long time (***), the non-alcoholic offer has become a category in its own right ...
4 Analysis of the offer
4.1 Overview of spirits references
The consultation of several sites specialized in the online sale of non-alcoholic beverages to have a general overview of the references of non-alcoholic spirits and their prices.
Brand Type of spirit Price NONA June Non-alcoholic spritz **,*€ OSCO Organic aperitif *% alcohol **,*€ Sober Spirits Gin without alcohol **€ Sober Spirits Rum without alcohol **€ Lyre's Absinthe ...
4.2 Analysis of prices and production costs
Non-alcoholic spirits are produced from the same ingredients as alcoholic spirits. However, since February ****, producers of this beverage have been warning about production cost increases that are expected to weigh on spirits prices. Thus, the raw materials that have experienced price increases are: Average price increase of raw materials used for ...
4.3 A tax system that benefits non-alcoholic spirits
The graph above shows the breakdown of taxes on spirits. The total amount of taxes on a spirit sold for €**.* is €**.**.
Taxes applied to spirits are re-evaluated each year according to inflation. With **% of tax revenues for only **% of the volumes of pure alcohol released for consumption in France, the industry ...
5 Regulation
5.1 Current regulations
There is no legislation governing non-alcoholic "spirits", which, therefore, in order to comply with the European regulation, should neither use the term "spirits" nor the names of the various spirits such as gin, vodka or whisky. However, it is also important to underline the obligation of the publicans to respect the ...
6 Positioning of the actors
6.1 Segmentation of market players
- Pernod Ricard Groupe
- William Grant and Sons
- Seedlip
- DJIN SPIRITS
- Campari France Distribution
- Brown Forman
- Rémy Cointreau
- Distilleries Massenez Peureux
- Campari
- Château Clos de Boüard
List of charts
- Size of the no-low market in 10 key countries
- French interest in spirits
- Ranking of the most consumed spirits
- The share of no-low drinkers by age
- Sales of soft drink production
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Latest news
How India is becoming Pernod Ricard's whisky paradise - 22/01/2024
- Pernod Ricard aims to accelerate its presence in India.
- The French giant, which occupies a leading position in the sub-continent
- Strong growth in the Indian whisky market.
- In the entry-level whisky segment, the group owns Royal Stag and Imperial Blue - two brands produced in India that rank among the top 5 best-selling whiskies in the country. It also owns several high-end brands: Chiva's Regal, Ballantine's and Glenlivet - imported whiskies that carry a 150% surtax.
- India accounts for 10% of the Group's total sales, or around 1.2 billion euros.
- A major market for the Group behind the United States.
- Consumption of imported whiskies and high-end Indian single malts is booming.
- Scotch imports are set to double between 2020 and 2022,
- India is the leading export market for Scottish brands.
- Sales of Indian single malt rose by 144% between 2021 and 2022.
- Local brands owned by the French giant account for 85% of sales by value. Imports of foreign brands account for the remaining 15%.
- Pernod Ricard has 27 factories across the country.
The trials and tribulations of Pernod Ricard to create the first whisky "made in China" - 17/12/2023
- Pernod Ricard inaugurates the country's first whisky distillery
- Pernod Ricard plans to invest 150 million euros over ten years in this project.
- Market launch of the first bottles of The Chuan, the first pure malt made in China.
- Bottles are priced between 115 and 190 euros, depending on the degree of alcohol (40, 46 or 60 degrees) and the type of aging.
- Pernod Ricard's Chinese subsidiary accounts for 10% of group sales
- Pernod Ricard is the world's second-largest spirits company, and already owns some 50 whiskies (including Chivas, Ballantine's, The Glenlivet, Aberlour, Royal Salute, Jameson and Jefferson's),
- The Chinese spirits market remains 97% dominated by Baijiu (sorghum-based alcohol).
- Western spirits share the remaining 3%, starting with cognac (a market worth 3.2 billion euros, according to specialist consultancy IWSR) and whisky (1.2 billion euros).
- The Emeishan distillery is located on the Mount Emei road, used by millions of Chinese tourists throughout the year. Pernod Ricard expects two million visitors within the next ten years.
Never full of acquisitions, Campari ready to revive Courvoisier cognac - 16/12/2023
- campari, the group that owns the Grand Marnier liqueur and the Aperol aperitif, is negotiating with Japan's Beam Suntory to acquire 100% of its Courvoisier cognac for 1.1 billion euros, i.e. almost 5 times sales (230 million euros by 2022).
- Beam Suntory's strategy is to refocus on its premium whiskies (American bourbons, Japanese whiskies, etc.).
- Campari generates sales of 2.7 billion euros
- Half of the growth in recent years has come from acquisitions: Grand Marnier (2016), Trois Rivières rums (2019), Lallier champagne (2020), Picon liqueur in 2022.
- The Italian group has made seven acquisitions in six years in France
- The United States, Campari's biggest market
- To grow in China, where Campari is weak, you need a cognac
- alongside Martell (Pernod-Ricard), Hennessy (LVMH) and Rémy Martin (Rémy Cointreau), Courvoisier is the fourth-largest player in this Charentais spirit, with a 5% global market share. 50% of its sales are made in China, where the local spirit, baijiu, remains ultra-dominant (97% of the local market by volume).
- Imported cognacs and whiskies have been in vogue for the past decade. Pernod Ricard, Diageo and LVMH take the lion's share.
- In the United States, Campari already generates nearly 30% of its business.
- Aperol leads Campari's sales (25% of sales in the first nine months of 2023).
- Sales of Wild Turkey bourbon, acquired from Pernod Ricard in 2009, have more than tripled.
Campari falls for Courvoisier, venerable Cognac house - 15/12/2023
- Campari is in exclusive negotiations to acquire 100% of Beam Holding France, owner of the Courvoisier premium cognac brand.
- Fixed purchase price: $1.2 billion
- Campari acquired American bourbon producer Wilderness Trail Distillery LLC in 2022
- Campari had also acquired Grand Marnier in 2016, Bisquit Dubouché in 2017, Trois Rivières and La Mauny in 2019, Champagne Lallier in 2020 and Picon in 2022.
- Founded in 1860, Campari is present in over 190 markets with a portfolio of more than fifty brands
The Chuan, Pernod Ricard's first Chinese whisky | Pernod Ricard and Chuan Whisky - 13/12/2023
- The Pernod Ricard group has launched the first bottles of pure malt produced at The Chuan distillery in China.
- The bottles are priced at 100 euros each.
- Pernod Ricard has invested 150 million euros over ten years to finance China's first foreign whisky distillery.
- The distillery has a capacity of 1 to 1.5 million pure spirits.
- China remains a massive consumer of Baiju, the national spirit, with a share of foreign alcohol consumption of less than 2%.
- Pernod Ricard holds leading positions in China for the two most widely consumed imported spirits, cognac with Martell and whisky with Chivas.
Cognac: Rémy Cointreau a victim of the difficult spirits market - 27/10/2023
- Rémy Cointreau U.S. sales down 26.6% in first half
- The group forecasts a drop in annual sales of between 15% and 20%.
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the non-alcoholic spirits market | France
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