French producers of liquors and spirits are struggling as people opt to cut their alcohol consumption to save money, an industry group said on Thursday.
Domestic sales of the drinks fell for the third year in a row, the Federation of French Spirits Producers (FFS) said.
Sales volumes in the retail sector shrank by 4.3% year-on-year to 251 million litres in 2023, and fell by a further 5% in the first few months of this year.
Sales volumes have fallen by 9.6% since 2020.
Consumption of spirits in the hospitality sector also fell by 2% in volume in 2023, after an initial increase following the dip relating to the pandemic and subsequent reopening of pubs and restaurants after restrictions to prevent the spread of the coronavirus.
As prices rise, consumers are going out less in order to cut their spending, the association said. There were only two exceptions to this trend, with consumption of fashionable spritz drinks increasing by 17.2% and a new thirst for elderberry liqueur, up 39%.
The industry is struggling with a long-term reduction in alcohol consumption in France, coupled with inflation. While some may imagine French people often drink wine or aperitifs, this has long not been the case, with alcohol consumption falling by 60% over the past 60 years, the producers' association says.
While 21.5% of people said they drank alcohol every day in 2000, this figure had fallen to just 8% in 2021, the group said.
Exports are also giving the industry a headache, falling by 13.2% in terms of volume and 12.2% in terms of commercial value in 2023.
Cognac exports fell 21.1%, vodka exports by 21.6% and exports of liqueurs by 17.2%, all above-average contractions.
Alongside inflation, countries are exporting less due to the threat of trade conflicts with the United States and China, the association said.