Drinks NPD - France

The beverage industry has responded with great resourcefulness to changes in French attitudes towards drink, brought about by growing health concerns and financial worries. This is especially true of soft drinks, where new product developments are making an appreciable contribution to turnovers. But the whole industry is now marching under the banner of health, responsible drinking, respect for the environment and sensible spending.

Premium positioning will always play an important part in an alcohol industry in which the French have built a long reputation of discernment, especially when it occurs in the context of festive holidays, but the bulk of the production is exposed to growing price pressure and loss of consumers to the soft drinks camp. Drink is increasingly bought in retail outlets, where the strong position of own-label exerts further pressure on prices; this especially in non-alcoholic drinks, where own-label presence and NPD activity are formidable.

Mintel sees great opportunities for novelty and experimentation in the soft drinks market which the French trade press has already called a ‘Health Eldorado’. Equally, the decline of alcohol consumption is slow and occurring from a very high level. Innovation that falls into line with the spirit of the times should still hit the right note.