Paris. The pandemic has not dampened enthusiasm for drinking out in France, but CGA’s research shows there are changes afoot Most French consumers were ready to return to the on-premise as restrictions eased in May, with nearly three-quarters (74%) planning to eat and drink out again within the first few weeks of reopening.
CGA’s latest research shows that eating and drinking-out remains engrained in French lifestyle despite the impact of the Covid-19 pandemic and lockdowns. Nearly nine in 10 (87%) of its consumers typically visit the on-premise, and around half (48%) do so at least once a week.
This enthusiasm led consumers to get back to venues quickly after France’s previous lockdowns. The number of consumers returning within a few months of reopening in summer 2020 (87%) was much higher than in comparable periods in the UK (65%) and the US (59%).
The state of the nation’s on-premise looks to be stable following the period of disruption caused by the pandemic, says CGA managing director EMEA and APAC Graeme Loudon.
“France’s restaurants, bars and cafés endured a very challenging 2020 and early 2021, but consumers are clearly very eager to get back to them as soon as they are able,” he says. “If restrictions can be successfully eased and consumers’ confidence is sustained, all evidence points to a strong recovery for the market over the summer.”
Despite sales of beer and cider, spirits and soft drinks in the on-premise falling -44.6% during lockdown, sales quickly recover when French venues are permitted to reopen, with beer and spirits sales between June and September 2020 only down -17% and -14% respectively on the same period in 2019 despite restrictions.
However, while total volumes should recover, CGA’s research shows that there may be changes afoot in both what is sold and where it is sold in the renewed French market. Macroeconomic trends are influencing consumers’ choices and, when asked about factors that will become more important in drinks choices over the next 12 months, the top two options are ‘good value’ and ‘high quality’. While not exclusive, this points to a potential polarisation in drinks choices in the French market.
Indeed, while 28% of consumers in France report having been able to save money over the course of lockdown, 18% suggest that the amount of disposable income they have has dropped due to Covid-19. Expect, therefore, to see continued trade-ups alongside an emphasis on value as consumers return to the market.
Emphasis on local
The other change in behaviour which is set to impact drinks choices is an emphasis on local and an invigorated sense of community and local pride. One in five on premise users in France now say that it is more important to them that their drink is local. Evidence of how this was impacting the market is already clear. Sales of both French gin and rhum both outperformed imported variants over the course of 2020 and this trend can be expected to continue in the reopened market. In the case of French rhum, it is clear that even links to France can be utilised to tap into a growing demand for local.
Tourism is also impacting the French on-premise. With CGA’s data showing that French consumers are prioritising spend on domestic holidays over the next year, this is something that is expected to continue to shape the market.
Over the course of 2020, drinks sales’ share shifted significantly away from regions in the north of the country, such as Paris and northern France, to domestic holiday hotspots. The south-east (+0.7%), south-west (+0.5%) and Mediterranean (+1.5%) regions all grew their share of total drinks sales volumes as consumers headed to beaches and away from city hotspots. This also impacted category mix, with categories linked to cocktails in particular growing share of sales, and brands that were able to effectively target summer occasions reaping the rewards.
With consumers more confident in drinking and dining al fresco, an initial surge of revisits has been reported as the trade tentatively reopens and, as consumer confidence grows, this is expected to translate into what may well be a bumper year for the on-premise in France, after a year of disruption.
CGA will provide further insights into France’s on-premise as it reopens to consumers. For details about CGA’s market measurement and consumer research and how it can help operators and suppliers to optimise sales and marketing strategies, contact Ben Krzysica at [email protected]
