Summary

The on-trade market, encompassing establishments like cafés, pubs, bars, and restaurants selling alcoholic beverages, experienced a significant downturn due to the COVID-19 pandemic, with enforced closures leading to a sharp drop in sales in 2020. However, recovery was observed as restrictions eased, with sales returning to pre-crisis levels in 2022 and registering a 20% increase towards the end of the year compared to January 2020. The market is estimated to reach $467.4 billion by 2027, with a projected CAGR of 5.09% from 2023 to 2027. In response to a decrease in alcohol consumption over the last two decades and the pandemic's impact, establishments have begun to diversify their offerings with a wider range of non-alcoholic drinks. Despite this shift, the French on-trade market saw record sales exceeding 11 billion euros in 2022, indicating a strong resurgence and a rekindled attachment to these venues post-pandemic..**Evolving Consumption Patterns in the French On-Trade Market** As we navigate through the dynamics of the French on-trade market, it becomes evident that the landscape is changing rapidly due to a variety of factors including societal shifts, industry innovations, and unforeseen global events like the COVID-19 pandemic. These establishments, which span from traditional pubs to cafes and bars, have realized an evolution in their structure and offerings to adapt to the changing demand. In recent years, the market has witnessed steady growth, particularly between the early 2000s and 2015, enjoying growth rates between 4% and 6% annually. This success story, however, faced significant disruption due to the COVID-19 crisis, but interestingly, the market showcased resilient recovery with its sales in 2022 surpassing even those of the pre-pandemic era, totaling over 11 billion euros. A key trend observed in France is the declining alcohol consumption over the past two decades, which contrasts the increased sales in drinking establishments. This indicates a clear shift in consumer preferences toward a wider range of non-alcoholic beverages. In fact, within the last twenty years, the allocation of household budgets for alcoholic beverages has declined in favor of non-alcoholic counterparts. Establishments have responded by diversifying their menus to cater to the demand for a variety of drink options. French consumers display a strong connection to pubs and drinking outlets, viewing them as an integral aspect of their social fabric. Nearly 29% of the populace associates frequenting these venues with the French art de vivre. The preference for these establishments extends across all age groups, with over 35% of people visiting at least once a month and a noteworthy 51% of young adults between 18-35 years old being regular patrons. On the job front, the beer market in France alone employs several thousand people, signalling the market's good health. The aftermath of the COVID-19 pandemic saw a resurgence in hiring within the sector, reflecting a bounce back to its former vibrancy. As for market structure, the traditional independent outlets now face competition from franchised outlets as well as restaurant and coffee brands like Hard Rock Café and Starbucks. This garners a response from the market where venues not only have to excel in their offerings but also innovate in the experiences they provide. Overall, the on-trade market in France reveals a sector that is dynamic and responsive to shifts in societal trends and preferences. With the domestic market rebounding post-COVID-19 and the industry's players positioning themselves strategically through diversification.The Titans of the French On-Trade Market: A Look at the Major Players As we delve into the landscape of the French on-trade market, it is apparent that the sector is not only vibrant and diverse but also marked by the presence of both entrenched giants and innovative upstarts. The landscape is populated by traditional independent establishments and emerging franchises which have been pivotal in shaping the market's current configuration. These key players have staked their claims on a wide array of offerings, from the effervescent world of breweries to the dynamic stage of coffee culture. **Heineken and Its Brewing Eminence** Heineken stands out as an unmistakable leader within the French beer market. Holding a commendable market share and boasting local production facilities, the company has become synonymous with beer in France. Its success not only stems from its eponymous flagship brand but also from its wide portfolio that includes popular offerings like Desperados and Affligem. Furthermore, Heineken's dominance extends beyond product production to distribution, through its France Boissons arm that services a vast array of foodservice customers. **Carlsberg's Frothy Domain** Carlsberg, though hailing from Denmark, has rooted itself deeply within French soil. With substantial production quantities emanating from its Obernai brewery, Carlsberg captures a significant segment of the supermarket shelf space. The company is particularly notable for leading the charge in the non-alcoholic beer segment, offering a compelling alternative to traditional beer enthusiasts. **AB InBev's Global Presence** AB InBev, though it does not brew domestically within France, manages to exert influence through its array of imported beers. The Belgian giant has positioned itself effectively, capitalizing on the allure of its global brands such as Leffe and Hoegaarden, to solidify a respectable presence in the French market. **Les Trois Brasseurs: The Convivial Brewpub** Representing the synergy of brewing and dining, Les Trois Brasseurs exemplifies the successful brewpub concept. Rooted in Lille, this chain has achieved a remarkable expansion, serving up a mix of craft beers and hearty pub fare that resonates well with a broad customer base. **Ninkasi: A Lyon Legacy Unfolds** Ninkasi, which germinated in Lyon, stands as a testament to the blending of craft brewing and pub culture. It has distinguished itself with reasonably priced offerings and a local touch that keeps patrons returning. Their approach encapsulates a commitment to quality beers complemented by an accessible and appet
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  • Number of pages : 30 pages
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  • Last update : 14/02/2023
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Summary and extracts

1 Market overview

1.1 Definition and scope of study

The on-trade market includes all establishments whose primary or secondary activity is the sale of alcoholic beverages. These establishments can offer consumption on the premises or for import, and their activity is conditional on possession of an operating license.

Business licenses grant establishments the right to market food and beverages. Licensed premises (licence III or licence IV) are subject to a maximum quota of one licensed premises (licence III or licence IV) per 450 inhabitants. These quotas apply at both municipal and departmental level. However, it is possible to depart from these quotas. Communes that have exceeded this quota can work with neighboring communes to reach an average of one outlet per 450 inhabitants.

The market for public houses is changing rapidly. The creation of franchised outlets (Irish Corner, Trois Brasseurs, Ninkasi...) is overshadowing traditional independent outlets, whose image is sometimes outdated.

The market is also suffering from competition from restaurant and coffee brands (Starbucks, Hard Rock Café, etc.), which are benefiting from the overall 18% decline in alcohol consumption over the last two decades.

As a result, all of these venues (restaurants, cafés and drinking establishments) have been heavily impacted by the Covid-19 crisis in 2020 and 2021. By 2022, sales in drinking establishments had returned to their pre-crisis levels (identical sales in February 2022 compared with January 2020), and were even up 20% over the end of 2022 compared with January 2020.

1.2 Global market

The drinks market is particularly well-developed around the world, with a large number of small players, independent or franchised distributors and retailers, working with some of the world's leading producers (***).

The on-trade market - businesses whose main activity (***) is the sale and consumption of alcoholic beverages on the premises- is very ...

1.3 Domestic market

The on-trade market has seen steady sales growth since the ****s. In ****, the drinks market had a record year, with sales exceeding ** billion euros. In ****, there were more than **,*** drinking establishments throughout France. [***]

Evolution of sales in the French drinking establishments market between **** and ****. France, ****-****, € bn Source: ****

Comparing sales growth ...

1.4 The impact of COVID-19

As we saw briefly in sections *.* World market and *.* French market, the drinks market was severely impacted by the COVID-** pandemic. The sector as a whole experienced a forced drop in demand, which caused the market to collapse.

Detailed sales trend in the French public houses market ****-**** France, September **** - ...

2 Demand analysis

2.1 Portrait of drinking establishment customers

The COVID-** health crisis made the French aware of their attachment to pubs, cafés and bars.it would seem that this period of restraint has rekindled the French people's love for these social establishments.in fact, **% of French people believe that frequenting these establishments is the epitome of the French ...

2.2 Changing behaviors, towards a reduction in alcohol consumption

By definition, public houses are places where customers can buy and consume alcohol. However, overall alcohol consumption in France has fallen sharply over the past twenty years, while sales in these establishments have continued to rise. These establishments are therefore focusing on diversifying their menus, and are now offering a wide ...

2.3 French attachment to drinking establishments

According to an IFOP - France Boisson survey, the French have a particular attachment to the terraces of bars, cafés and restaurants. **% of those polled consider that drinking establishments are part of the French art of living. And **% consider these places to be places for socializing and sharing.

The main ...

3 Market structure

3.1 Jobs in the French drinking establishment market

The beer market alone will employ *,*** people directly and more than ***,*** indirectly by ****. [***]

Pubs are directly responsible for sales and marketing, and the industry hires many people on long-term contracts, as well as many seasonal workers on short-term contracts and student contracts. By ****, the on-trade will be hiring over **,*** permanent staff, ...

3.2 Beer and Coffee Production

Coffee and beer are the beverage outlets' flagship products.

Beer production in France (***):

AB inBev, Heineken and Carlsberg dominate the French beer market. In French supermarkets, Heineken has a **% market share by value. The Dutch brewer has * breweries in France , producing over *.* million hectolitres of beer a year . [***]

The group also ...

3.3 Independent and franchised pubs.

Historically, pubs have been independent establishments, offering a wide choice of beverages that vary greatly from one establishment to another. Historically, independent establishments have been the main players in the pub market. New players are emerging, and just as in the restaurant business, pub franchises are also emerging in France.Franchising ...

3.4 Size of drinking establishments

The market for drinking establishments is evolving. Initially, it mainly concerned small establishments able to welcome a small number of customers.today, establishments are tending to grow in size, and to increase their capacity. This increase in capacity implies an increase in the number of employees needed to serve customers.

Change ...

4 Offer analysis

4.1 Distribution of drinking establishments in France.

If the French consider public houses to be part of the French art de vivre, it's because public houses can be found all over France. In ****, there were over **,*** public houses in France, including *,*** in Paris alone, representing *.*% of all public houses in France.

Growth in the number of public houses ...

4.2 Average pub prices in France

Prices offered by drinking establishments vary widely, depending on the time of year, the time of day and the location of the establishment. For example, drinks outlets regularly offer Happy Hours, a period between *pm and *pm when part of the menu is less expensive, a practice specific to alcoholic beverages. ...

4.3 Market trends, prices, concepts and chains

The pub market offers many opportunities for owners to come up with original concepts for their pub. There is a wide variety of bar, café and restaurant concepts. Examples include classic bar concepts such as beer bars with a wide variety of products, wine bars, vodka bars, whisky bars, etc. More ...

5 Regulations

5.1 Restaurant and liquor license

Drinks outlets are restaurants selling alcoholic beverages. The activity of selling alcohol may be minor or major, and these establishments fall into the "Débit de Boisson" category. These establishments must hold a license in order to obtain a permit to sell alcoholic beverages. It should be noted that temporary establishments ...

5.2 Regulations: Alcohol, Food, Hygiene, Safety

Drinks outlets are subject to a number of regulations concerning the display of drinks, the protection of minors and consumers in general:

The establishment's license must be displayed. Prices of food and beverages must be clearly displayed on menus and inside the establishment, and free fresh or tempered drinking water must ...

6 Positioning the players

6.1 Player segmentation

  • Hard Rock Café France
  • Trois Brasseurs (Agapes Restauration)
  • Carlsberg
  • France Boissons
  • Anheuser-Busch InBev
  • V and B
  • Heineken Entreprise France
  • Ninkasi Brasserie

List of charts

  • Sales trends in the global on-trade market between 2017 and 2027.
  • Trends in sales in the on-trade market
  • Detailed sales trend in the French public houses market 2018-2022
  • Proportion of French people attached to drinking establishments
  • French pub-goers survey
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Latest news

Brewer Ninkasi shifts its business model - 28/03/2024
  • Investment in the new Tarare plant: 32 million euros.
  • Current number of Ninkasi employees: 300.
  • Current Ninkasi sales: 26 million euros.
  • Beer production capacity before expansion: 40,000 hectolitres. Beer production capacity after expansion: 120,000 hectolitres.
  • Current number of Ninkasi outlets: 26, including 22 in Auvergne-Rhône-Alpes.
  • Forthcoming franchise openings planned in Montpellier, Lille, Metz and Besançon, Rennes and Grenoble.
Wine store V and B invests in alcohol-free products - 26/10/2023

  • V and B is a chain of 270 wine shops in France.
  • V and B recently invested in Gueule de Joie. The Gueule de Joie website was created in 2019. Gueule de Joie offers 250 beverage references and has sold 150,000 bottles to 20,000 customers in 2021.
Ninkasi takes delivery of its new industrial brewery - 25/09/2023
  • Investment in new Tarare plant: 30 million euros
  • Tripling of beer and whisky production
  • Ninkasi sales in 2022: 26.2 million euros
  • Ninkasi has a network of 25 sales outlets, 9 of which are directly operated and the rest franchised
With Gueule de joie, V and B goes alcohol-free - 15/08/2023
  • Founded in 2000, V and B has sales of 205.3 million euros, a figure that has almost doubled in the last five years
  • The network employs 1,800 people.
  • The V and B brand opens franchises at a rate of 15 to 20 a year, with almost a thousand franchisee applicants each year
  • The Mayenne network has 270 outlets.
  • The non-alcoholic wine and beer segment is growing by 12% a year.
  • The V and B chain has taken a minority stake in Gueule de joie, which has sales of half a million euros and two employees.
  • Gueule de Joie offers 200 non-alcoholic and low-alcoholic wines, beers and cocktails
  • The V and B network has a 12,000 m2 logistics base in Mayenne, with a planned expansion of a further 7,500 m2
  • V and B plans to open five to six additional "Levrette cafés" next year. Has a brewery in Château-Gontier V and B has set up its first outlet in England, in Northampton
The 3 Brasseurs brand regains momentum - 26/04/2023
  • Part of the catering division of the Mulliez Family Association (Agappes Restauration)
  • The company's establishments are all microbreweries, brewing beers that are sometimes very local
  • 7 to 10 new restaurants opened per year before the health crisis.
  • 20 new restaurants planned for 2023 and 2024, mainly franchises.
  • 87 restaurants in total, including 70 in France, 15 in Canada and 2 in Brazil.
  • 10 restaurant openings planned in Brazil within 5 years.
  • Objective of opening 2 new countries in Europe by 2025.
  • Sales of 223 million euros excluding tax in 2021, compared with 195 million in 2019.
Brewer Ninkasi increases its production capacity in a new plant in Tarare. - 10/07/2022
  • The Ninkasi Group has laid the foundation stone for its new brewery in Tarare.
  • Annual beer production capacity is set to rise from 40,000 to 120,000 hectolitres, while spirits production will increase to 20,000 hectolitres. This represents an investment of 32 million euros
  • Production facilities represent a commitment of 14 million euros
  • The Ninkasi group employs 270 people, including around 15 in Tarare, and has achieved sales of 24.4 million euros in 2021

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Hard Rock Café France
Trois Brasseurs (Agapes Restauration)
Carlsberg
France Boissons
Anheuser-Busch InBev
V and B
Heineken Entreprise France
Ninkasi Brasserie

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