The France alcohol ingredients market is projected to grow at a CAGR of 4.18% during the forecast period. In 2019 the Frenchgross 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 currents 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 during 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 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 with 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 is instrumental for extending a memorable experience to the tourists and ensure repeat visitors. Also, it is important to note that as of 2018 the revenues earned from taxes on the consumption of beer were € 943,48 million as compared to € 892,17 million registered in 2017 [Source: European Commission]. Thus, these conditions are favorable for the 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 behavioral risk factors that is a major driver of mortality of the nation which is expected to ultimately restrain the growth of the France alcohol market to a certain extent. This is partly because in 2017 about 7 % (40 000) of all deaths were attributed to alcohol consumption. Albeit reportedly stabilizing 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 introducing a law mandating labeling 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 consuming alcohol 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 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 inseverable from the French culture and tradition are among others, expected to augment the growth of the France alcohol ingredient markets.