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MARKET OUTLOOK

France’s market for alcoholic spirits is projected to depict a CAGR of 3.20% and -0.25%, by revenue and volume, respectively, over the forecasting duration of 2021-2026. 

The closure of bars, nightclubs, and other on-trade drinking establishments owing to the onset of the COVID-19 pandemic, along with travel restrictions impacting tourism, had a devastating effect on the on-trade sales of spirits in 2020. As an after-effect of the pandemic, consequent disruption in people’s income & the overall economy, and the rise in importance of value for money local alcoholic drinks with very cheap unit prices witnessed increased sales. 

Therefore, while all spirits are suffering steeper declines in both on- and off-trade channels, particularly white rum. Whereas, low- to mid-priced vodka fared better than others. This is because they were comparatively more accessible and easier to prepare for cocktails at home, when consumers had more time.

The negative impacts of the pandemic have continued over 2020, and are expected to continue a year or two beyond, depending on how long the lockdowns, social distancing practices, and travel restrictions last. However, on the bright side, and keeping in sync with recent trends, dark rum and particularly Japanese whiskey are expected to exhibit positive growth in the off-trade channel. Meanwhile, English gin is set to witness the strongest growth in the on-trade channel.

COMPETITIVE OUTLOOK

The competitors in the alcoholic spirits market include Bacardi & Co Ltd, Diageo Plc, Pernod Ricard Groupe, La Martiniquaise SVS, Brown Forman Corp, and William Grant & Sons Ltd.