The Demand for (Non)Alcoholic Beverages in France and the Impact of Advertising

Abstract

Over the last four to five decades the demand for (non)alcoholic beverages In France has changed dramatically. The total adult per capita consumption of alcohol (in pure alcohol equivalents) has decreased from 24.30 litres in 1963 to 12.30 litres in 2009 (WHO 2012). Furthermore, changing preferences have led to shifts between different kinds of alcoholic beverages, and hence the per capita consumption of beer, spirits and wine to some extent exhibit conflicting trends. An analysis of the per capita consumption (see Figure 3.1) reveals that the demand for beer between 1975 and 2004 decreased by approximately 1 per cent per year, with most of this decline taking place between the early 80s and mid 90s. The per capita consumption of spirits has on the other hand increased steadily, with an average annual rate of 0.5 per cent between 1975 and 2004. It is however in the consumption pattern of the traditional favourite alcoholic beverage in France, wine, that the most dramatic changes can be observed. In the following, a distinction is made between two different categories of wine: sparkling wine (including champagne) and still wine. While the per capita consumption of sparkling wine has increased by on average 2.5 per cent per year, and more than doubled since 1975, the consumption of still wine has declined. With respect to still wine, it should however be noted that there has been a shift in consumer preferences from less expensive table wine, which has declined, towards more expensive high quality wine. Consequently, it is not surprising to observe a decline of the per capita consumption of wine in France (Laporte 2005; Besson 2004).1KeywordsAlcoholic BeveragePrice ElasticityCapita ConsumptionDemand ResponseDemand SystemThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.