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(Last updated: 30 Oct 2008)
Trends and opportunities
The market
The French food industry ranks among the world leaders in terms of innovation, technology, research and development and quality. French consumers are health conscious and are becoming more demanding in terms of quality standards and traceability of products. Australia’s image of a clean and green environment is particularly favourable in this context.
French consumers are ready to pay premium prices for high quality products. Organic supermarkets have taken advantage of this situation and there are good prospects for innovative dietetic, health and organic foods in France. In 2007, the production of organic food increased by 17 per cent.
Mergers and alliances between the leading hypermarkets and supermarkets have formed the country’s seven largest retailers with five central buying offices. The trend towards consolidation is growing.
The main mass grocery retailers (MGAs) include Monoprix, Franprix, Casino, Leclerc, Aldi, Carrefour and Lidl.
In 2007, France produced a total volume amount in tonnes in the following industries:
- Fresh food – 19.4 million
- Meat – 4.9 million
- Vegetables – 2.9 million
- Fruit – 5.3 million
- Nuts – 0.52 million
The agri-food sector is the largest industrial sector in France. There are more than 418,000 people who are employed by 4,250 food companies, which makes the food sector the third largest industrial employer in France. France ranks among the leading exporters of processed food products worldwide with total exports valued at €33 billion (2007).
In terms of food products exported to France:
- Seafood products represent 12.5% of all products
- Meat and meat by-products – 11.9%
- Dairy products – 10.9%
- Oils – 7.8%
- Vegetable and fruit preparations – 7.4%
In France, the agriculture and food production sectors are:
- Fish – 2%
- Chocolate and confectionary – 4.3%
- Mineral water and soft drinks – 4.7%
- Fruit and vegetable processing – 4.9%
- Alcoholic beverages – 9.7%
- Bread and baked goods – 12.5%
- Dairy – 17.3%
- Meat and poultry – 23.0%
- Other – 21.6%
Meat
In France, the meat industry is very fragmented – the top three players account for less than 30 per cent of total sales. Seventy per cent of the meat within the market is sold to supermarkets and hypermarkets while 25 per cent is sold to butchers and five per cent is sold to discounters. The market in France can be divided into the following meats and quantities:
- Pork – 1.9 million tonnes
- Poultry – 1.4 million tonnes
- Beef and veal – 1.3 million tonnes
- Lamb mutton and goat – 0.15 million tonnes
- Other meats – 0.29 million tonnes
(Source: Euromonitor)
Quotas are a limiting factor for exports of meat such as beef and lamb to France. Australian exports of meat to France include small volumes of lamb and beef meat and a larger volume of game meat where quotas do not apply. The variety of game meats exported to France from Australia includes kangaroo, ostrich, venison and wild boar.
Fruit and vegetables
High quality products are also in demand – for example, in 2007-08, exports of almonds, macadamias and dried fruit exported to Europe was valued at $62 million (Source: Foodmag).
The volume of Australian mangoes exported to France has been increasing steadily for the past two years. There is a market for dried fruit such as sultanas and raisins, which are used in the bakery and pastry sector, as well as opportunities for off-season fruit and vegetables such as:
- strawberries
- peaches
- cherries
- nectarines
- asparagus
- onions
Seafood
France is the world’s fourth largest importer of seafood importing around AUD$6.5 billion in seafood. The main seafood species imported are prawns, salmon, tuna, scallops, lobsters, crabs, mussels, pollack, angler-fish and cod. Australian seafood distributed to France includes lobster, prawns, scallops, crabs, red emperor and yabbies. The breakdown of the seafood product sector is:
- Fresh and live products – 62.5 per cent
- Frozen products – 27 per cent
- Smoked and dried products – 10.5 per cent
Processed food
In 2007, the processed food sector generated approximately AUD$105 billion in sale. The main drivers for the market were chilled processed food and baby food. The main surge in these sectors is due to the growing number of younger people looking for convenience and the highest birth rate in 30 years in France respectively.
Health concerns have also continued to play a role in this market – with media campaigns and new legislation bringing obesity to a forefront in France. This has led manufacturers to focus on healthier packaged food products.
Between 2002 and 2007, the following industries saw a signficant increase in sales in France:
- Sweets and savoury snacks – 8.6%
- Ready meals – 11.6%
- Soups – 25.8%
- Pastas – 6.4%
- Processed frozen foods – 8.9%
- Chilled processed food – 30.1%
- Baby food – 21.7%
(Source: Business Monitor International: Processed foods)
Wine
Wine sales in France for 2007 represented approximately AUD$40 million. Total world sales decreased by two per cent, but sparkling wine and higher quality wine saw a rise in sales.
In 2006, France imported approximately 9.1 million litres of Australian wine; representing approximately two per cent in wine imports in France and an approximate value of AUD$17 million. Even in this highly competitive market, along with the declining economy, wine sales have showed a steady growth of around four per cent.
It is worthy to note that Australia is France’s third largest importer of new world wines, behind North and South America. It is worth noting that France exports in wine totalled AUD$7.2 billion.
(Source: Business Monitor International wine fact sheet - 2006)
Opportunities
The main opportunities in the French food and beverage industry for Australian exporters are:
- wine
- seafood
- meat
- fruit and vegetables
- processed food
Other areas of potential growth include the easy-to-prepare foods; such as pre-prepared dishes of meat, vegetables and fish. This area is seen as a growing sector in France as a result of the rising number of young, single parents and professionals who are looking for an easy alternative to traditional cooking.
Furthermore, an increase in sales for health and organic products is expected as a result of a worldwide trend in addition to health issues for French consumers.
(Source: Business Monitor International: Food)
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