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False Start? Assessing the Impact of Paris 2024 on Beverages

12/13/2023
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It’s generally argued that the Olympics Games have a positive influence on various sectors in the country where they take place, and Paris 2024 is no exception to this. Indeed, in a recent piece, Euromonitor analysed the likely positive impact of the Olympics on the tourism industry in France.

The same positivity is prevalent for beverages. The Olympic Games can be a useful way for sponsors to showcase smaller brands within their portfolio and may also offer sponsors the chance to expand their consumer base. Meanwhile, it is thought that the Games can also help to encourage a shift in consumer habits towards sustainable packaging. However, it is important not to overstate the impact of the Olympics, given that there are several other trends and considerations impacting the category.

Raising the profile of lesser-known brands

The Olympics can give prominence to lesser-known drinks brands. Spectators will see and purchase these drinks when attending events, and TV viewers will also see these drinks on their screens. Coca-Cola is an official sponsor of the Olympics, which means that its range of drinks will be available to buy at venues. Therefore, the Games present an opportunity for Coca-Cola to raise awareness of brands such as Fuze Tea and Tropico, two brands that certainly could grow their share in their respective categories in France in future. For example, Tropico was acquired by Coca-Cola in 2018 and currently only has a low single-digit market share in the French juice drinks market.

The actual impact of the Olympics on total volume sales of soft drinks in France may, however, be muted. Bottled water and carbonates, the largest beverage categories in the French market, are mature. Moreover, bottled water will be impacted by the shift towards more sustainable and reuseable options, and carbonates will see consumers moving to beverages that are perceived as healthier.Chart showing Growth Rates for Soft Drinks Categories in France

Alcoholic drinks will not be available to purchase at the Games, except for in VIP areas. Tourtel Twist – a non-alcoholic beer brand – has, however, signed to be an official supporter of the Games and will be available for purchase at venues, something which will give exposure to the brand itself and boost the already dynamic non-alcoholic beer category in France.

Establish a relationship with future consumers

Beverages could also benefit from the Games through boosting engagement with new and future consumers. At Rio 2016, Coca-Cola launched the #ThatsGold campaign which sought to connect with younger people through collaboration with well-known bloggers and influencers. It is possible that a similar thing could happen in 2024, for instance with an attempt to develop a relationship with Gen Z consumers. In addition, it is the case that non-sponsors can build on the hype surrounding the Olympics – and perhaps reach new consumers – by entering into partnerships with athletes made famous as a result of the Games.

Shift in perception of sustainable packaging

Undoubtedly, the biggest impact will be on matters related to sustainability. During Paris 2024, 700 beverage fountains will be installed at competition venues by Coca-Cola, and spectators will receive their drinks in reuseable cups. After the Olympics, these fountains will be redistributed throughout France. Some Games locations – as well as hospitality areas – will also use returnable glass bottles.

French consumers are aware that recyclable and reuseable/refillable packaging is environmentally friendly. Thus, amidst the presence of climate anxiety and the ongoing development of the necessary legislative infrastructure, the use of reuseable and returnable packaging at the Olympic Games could give a welcome boost to sustainable drinks packaging in France.

So, the Games could help shift the culture in the country in matters related to beverages packaging, for instance by making recyclable and reuseable packaging more prominent and acceptable, and showing that it can work.

Chart showing Which of the following types of packaging do you consider to be sustainable or better  for the environment?

It is important to bear in mind other consumer considerations. For instance, according to Euromonitor International’s Voice of the Consumer: Lifestyles Survey, when asked what features they would be willing to pay more for, French consumers reported that superior taste and natural qualities were more important than products that were environmentally conscious or sustainably produced. This suggests that concerns around sustainability are rivalled by other considerations in consumers’ minds.

Overall, it is clear that the Olympics could have a positive impact in several areas for the beverages industry in France. However, it is important to be realistic in both where and how this impact will be seen.

To read more on related topics, the Soft Drinks in France report for 2023 and the Carbonates in France report are available. A more in-depth piece will be published that will expand on the topics raised in this article, for instance looking at the impact of previous Olympic Games and Football World Cups.

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