France Alcohol Ingredients Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Ingredient (Yeast And Enzymes, Colors, Flavors & Salts, Others), By Beverage Type (Beer, Wine, Whiskey, Spirits (Gin, Rum, Others)) - Forecasts From 2022 To 2027

The France alcohol ingredients market is projected to grow at a CAGR of 4.24% during the forecast period.

In 2019, the Francegross domestic product (GDP) amounted to approximately $2.71 trillion. The country is the world’s seventh-largest industrialized economy and Europe’s third-largest economy after Germany and the United Kingdom. At current prices, the final consumption expenditure of households pertaining to alcoholic beverages was in the order of € 21,704 million which is an increase from the € 21,584 million, registered in 2018. Further, France accounted for 18.7 % of the EU-27’s gross household adjusted disposable income in 2018 which was the second-highest that year [Source: OECD]. Before all the foregoing, it is important to note that France is the world’s leading destination with a reported 89.4 million foreign visitors in 2018. Further, accounting for nearly 8% of GDP, tourism is a key sector of the French economy, generating two million jobs and bringing in around €56.2 billion in tourism receipts. The French government has reportedly set a goal of 100 million international tourists and of earning €50 billion in tourism receipts by 2020 [Source: Ministry for Europe and Foreign Affairs, Government of France]. This ambitious goal of the French government is also projected to propel the production of alcoholic beverages during the foreseeable future since France is globally renowned for its alcoholic offerings (Champagne, cognac, etc.), which are instrumental in extending a memorable experience to tourists and ensuring repeat visitors. It is also worth noting that, as of 2018, revenues from beer consumption taxes totalled €943,48 million, up from €892,17 million in 2017 [Source: European Commission]. Thus, these conditions are favourable for liquor production in the country, thereby facilitating an anticipated alcohol ingredient market during the forecast period.

Nevertheless, alcohol consumption has also been acknowledged as one of the behavioural risk factors that is a major driver of mortality of the nation which is expected to ultimately restrain the growth of the French alcohol market to a certain extent.  This is partly because in 2017, about 7 % (40,000) of all deaths were attributed to alcohol consumption. Despite appearing to have stabilised in 2013, alcohol consumption remained 20% higher than the EU average [Source: OECD]. Further, there has been a recent initiative taken by the French government through the means of introduce a law mandating labelling for all alcoholic beverages with a warning against drinking during pregnancy. This regulation has been embedded within a wider strategy to raise awareness of the detrimental effects of alcohol consumption during pregnancy. Further, with the advent of COVID 19, restraining alcohol consumption is anticipated because heavy use of alcohol increases the risk of acute respiratory distress syndrome (ARDS), one of the most severe complications of COVID-19 [Source: WHO]. However, with premiumization which is one of the most significant trends that is reportedly influencing the market, several craft beer makers have come up in the country as a response to the same. Also, there is an increasing interest in low-alcoholic beverages, and the fact that wine is inseparable from French culture and tradition, among others, is expected to augment the growth of the French alcohol ingredient markets.

Key developments and product launches

The alcohol ingredient market in the French region has reported significant developments, owing to the increasing economy and tourism.

As per the June 2021 blog by Lallemand Brewing, the company released a new hybrid beer yeast named LalBrew Farmhouse, in collaboration with Renaissance Yeast, a beverage yeast technology company, after research and development by the latter. The developed Saison yeast has attractive characteristics with no cross-contamination risk.

LalBrew® Verdant IPA yeast is the product of the cooperation of Lallemand Brewing with Verdant Brewing Co, a craft brewery specializing in IPAs and current hop-forward styles, extending the "We Brew With YouTM" philosophy even further. The desire of Verdant Brewing Co. brewers to develop and offer consistency to their IPA, as well as to increase the company’s experience in IPA fermentation management, drove the ambition of this partnership. Verdant IPA was chosen for its performance and distinctive sensory qualities when used to make hoppy styles after a lengthy screening procedure of the brewery's "house" yeast.

In April 2021, Döhler chose Flavourtech's Spinning Cone Column (SCC) technology since it can capture natural flavors from a wide range of goods, including fruit, vegetables, tea, coffee, and botanicals. Döhler expects to increase efficiency and product quality with this partnership.

Impact of the COVID-19 pandemic

The COVID-19 pandemic led to the closure of many major industries, leading to a massive economic slowdown. Owing to the strict lockdown and social distancing procedures, the market demand suffered. The France alcohol ingredients market initially reported a slow market demand, but eventually, as governments allowed the sale of alcohol across states, the market demand increased rapidly. Moreover, with the increasing online shopping and delivery trend, the alcohol market saw a surge in demand. Companies such as Deliveroo and UberEATS started to deliver alcohol in the region, which increased the alcohol market sale and resulted in a positive outlook for the alcohol ingredients market. This trend is further anticipated to grow, as countries start to roll back their lockdown protocols.

Segmentation

• By Ingredient
  • Yeast and Enzymes
  • Colors, flavors & salts
  • Others
• By Product Type
  • Beer
  • Wine
  • Whiskey
  • Spirits
    • Gin
    • Rum
    • Others

DÖHLER FRANCE S.A.R.L.

Malteurop Groupe S.A.

Lallemand S.A.S.

Lesaffre

The Soufflet Group