June 2013
THE FRENCH FOOD AND DRINK MARKET
OFFICIAL PROGRAMME
THE FRENCH FOOD AND DRINK MARKET The publication is a valuable reference for Swiss companies wanting to enter the French Food and Drink market. It contains information about the regulatory environment, the most important players in the food retail trade, potential partners, trade fairs and an analysis of opportunities and challenges. Language: English Number of pages:84 Author: SUTRALIS
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Contents
1. INTRODUCTION _____________________________5 1.1. General Country Information __________________ 5 1.2. Overview of the food market __________________ 6 1.2.1. National key figures _______________________ 6 1.2.2. The French agri-food industry in Europe _________ 6 1.2.3. Balance Trade ___________________________ 6 1.2.4. Priorities of the market _____________________ 7
3.2.2. Market operators & certified land _____________15 3.2.3. Organic production ______________________ 16 3.2.4. Import of organic food ____________________ 16 3.2.5. The organic market in terms of distribution ______17 3.2.6. Consumer’s behavior for organic food _________ 18 3.3. Health Food ____________________________ 19 3.3.1. Functional Food ________________________ 19 3.3.2. Food Supplement _______________________ 23
2. REGULATORY ENVIRONMENT-OVERVIEW ______8
3.3.3. Dietary Products ________________________ 27
2.1. Authorities involved ________________________ 8
3.4. Processed Food __________________________ 29
2.1.1. ANSES ________________________________ 8
3.4.1. Definition of «Processed Food » _____________ 29
2.1.2. DGAL ________________________________ 8
3.4.2. Sub-categories of Processed Food ____________ 29
2.1.3. DGCCRF ______________________________ 8
3.4.3. Trends in the processed food market __________ 32
2.1.4. DGS _________________________________ 9
3.4.4. Conclusion ____________________________ 33
2.2. National regulations ________________________ 9
3.5. Beverage Industry ________________________ 33
2.2.1. Import requirements ______________________ 9
3.5.1. Spirit Industry _________________________ 34
2.2.2. Agricultural Documentation _________________ 9
3.5.2. Sparkling Wine Industry __________________ 35
2.2.3. The Eco-Label __________________________ 9
3.5.3. Wine Industry _________________________ 36
2.3. Labelling _______________________________ 9
3.5.4. Cider & Fruit Wines Industry _______________ 38
2.3.1. French labeling __________________________ 9
3.5.5. Other Fermented Beverages ________________ 39
2.3.2. Swiss labeling __________________________ 10
3.5.6. The Beer Industry _______________________ 40
2.4. Imports from Switzerland ___________________ 12
3.5.7. Malt Industry __________________________ 41
3. FOOD INDUSTRY ___________________________13 3.1. Food & Beverage Industry ___________________ 13
3.5.8. Water Industry _________________________ 41 3.5.9. Soft Drinks Industry _____________________ 44
3.1.1. Key figures ____________________________ 13
4. FOOD DISTRIBUTION _______________________ 46
3.1.2. Structure of the french agri-food sector _________ 13
4.1. Retail Market ___________________________ 46
3.1.3. Innovative trends in agri-food industries in 2011 __ 14
4.1.1. History of the retail market in France __________ 46
3.2. Organic & Natural Food ____________________ 15
4.1.2. Structure of the sector ____________________ 46
3.2.1. Key figures – end of 2011 __________________ 15
4.1.3. The pricing policy in the retail sector __________ 48
Contents
4.1.4. The main players in the French retail sector ______ 48
5.2.4. Human Resources ______________________ 76
4.1.5. A growing concept: «Drive» ________________ 57
5.2.5. Regulation ____________________________ 76
4.1.6. Conclusion ____________________________ 59
5.3. Check List: How to enter the French market ______ 76
4.2. Specialty and Gourmet Sector ________________ 59
5.3.1. Your financial ressources _________________ 76
4.2.1. Definition of specialty, gourmet products _______ 59
5.3.2. Your team ___________________________ 76
4.2.2. Key figures and main players _______________ 59
5.3.3. Marketing your products __________________ 77
4.3. Food service and HoReca ___________________ 61
5.3.4. Production & Logistics ____________________ 77
4.3.1. HoReCa ______________________________ 62 4.3.2. Food Service Sector ______________________ 64
6. CONCLUSION ______________________________ 78
4.3.3. How to distribute to the HoReCa and the food service
7. APPENDIX _________________________________ 80
sectors
7.1. Food & Beverage Trade Shows ________________ 80
66
4.3.4. Conclusion ____________________________ 67
7.2. Main Organisations & Trade Associations ________ 81
4.4. Private Label & Branded Products _____________ 68
7.2.1. French Agri-food associations by sector ________ 81
4.4.1. Definition of Private Label _________________ 68
7.2.2. Main public organizations _________________ 82
4.4.2. Private Label market _____________________ 68
7.3. Main Publications in the French Agri Food Industry _ 83
4.4.3. Branded products VS Private Label products _____ 72 4.4.4. Conclusion ____________________________ 72
5. DEVELOPMENT & STRATEGY FOR SWISS FOOD IN THE FRENCH MARKET ________________________73 5.1. Consumer trends & opportunities ______________ 73 5.1.1. Health and Balance ______________________ 73 5.1.2. Speed and ease of use _____________________ 73 5.1.3. Traceability and Ethics ____________________ 74 5.1.4. Quality & value for money __________________ 74 5.1.5. Summary of the market opportunities __________ 75 5.2. Challenges of the French Market ______________ 75 5.2.1. The French business culture ________________ 75 5.2.2. Financial aspect _______________________ 76 5.2.3. Commercial tools _______________________ 76
1. INTRODUCTION 1.1. GENERAL COUNTRY INFORMATION France, with its tumultuous economic, political and cultural history, is today the fifth largest economy in the world and the third largest in Europe. From the French Revolution to French literature, gastronomy and Haute-Couture, France is defined as a truly global leader. After the World War II, France played a key role in building a co-operation between the European countries, leading the formation of the European Union. Being one of the six founding members of the European Union, France is one of the most important driver, along side Germany. At the crossroads of Europe, France is virtually at the heart of the European economy. Within 2000km de Paris, the largest market in the world can be reach within 48 hours. This market accounts for 600 million consumers. Thanks to a developed transportation network, France became an international platform for transport. There is 11 000km of motorway network, 190 airports and the largest high-speed rail network in Europe with 31,000km of tracks. Key figures about France Population
64.3 million
Capital
Paris
Area
550 000 km²
Language
French
Major religion
Christianity
Monetary Unit
Euro
Main Exports
Aerospace, metals and electrical components, agri-food, automobile, services.
Trade balance
Deficit: €4,334 billion
GDP per capita
$44,401
The French economy has several strong industries, leading the country to be competitive in Europe but aslo in the world.
The R&D aerospace sector, which includes leading manufacturers of aircraft, helicopters, military planes and private jets, is one of the most dynamic sector in France. With a highly skilled workforce and numerous specialist schools supporting this sector, foreign companies working in France account for 47% of the total turnover, highliting the high attractiveness of this sector. The annual sales for aerospace was €38 billion in 2010.
The agri-food sector is also very active and attractive with many multinational companies having their research centers in France. The sub sector of the bio-fuel market is starting to flourish with the development of clusters and research laboratories. By 2015, France is predicted to be the European leader for non-nutritional use of agroresources.
As the second largest manufacturer of automobile in Europe, France accounts for 17% of the total European production. France is one of the most attractive countries in terms of foreign investment for global automobile companies.
Fifth largest producer of chemicals and third biggest exporter in the world, France is the world’s leading producer of glass products and industrial glass. It is also the world’s leader for building materials. Foreign companies are again vastly present in the nation through foreign investment. It accounts for 55.4% of the turnover in the specialty chemicals space, 44.9% in the soaps and perfumes category, 40% in the base chemicals market and 38% in the plastics sector.
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The pharmaceutical sector is strong in research foundation. The world’s leading producers of pharmaceutical drug have a branch in France, accessing available research scientists and technicians. The sector was worth €36 billion in 2011.
The French fashion industry is one of the most powerful in the world. In 2010, it was worth €55.7 billion. The market includes: ready to wear, luxury and Haute Couture, lingerie and footwear. The country has more than 11,000 companies in fashion, textile and design.
France has also a strong personal services market, providing a wide range of family and health-care services. This industry is one of the fastest growing sectors in the French economy as well as the biggest employer of the country.
In 2011, France attracted €30.4 billion of foreign investment, giving France the ninth rank in the world and the third in Europe after Belgium and the United Kingdom. François Hollande, elected president in 2012, has many challenges awating him, particularly in term of fiscality and internal affairs. Reducing the national debt, being more competitive in Europe and in the world, as well as dealing with the cultural evolution of France are some of the issues the French government has to handle. Today, France is seen as a pioneer and an innovator in many fields. Culture, cuisine, art, architecture, literature, music, philosophy, fashion, science and technology, lifestyle, or business, France seems to be occupying a pride of place everywhere.
1.2. OVERVIEW OF THE FOOD MARKET 1.2.1. National key figures The French agri-food industry is one of the most dynamic industries in France, contributing to the health of the French economy. In 2010, the agri-food industry contributed for 18.8% of the total sales of the industry sector and represented 16.5% of the added value of the French industry. The total sales turnover of the agri-food industry was evaluated at €147 billion in 2010 with a growth of 8%. The same year, the agri-food sector employed 576,325 people (including small retail businesses), making it the first employer in the industrial sector. The sector has 13,500 firms with 97% of them represented by small and medium enterprises (companies with less than 250 employees). In 2011, French people dedicated 13.5% of their household expenditures in food, just after «accomodation, heating, lighting» and transport. The European average household expenditures in food was 12.9%. Germany dedicated 11.5%, Belgium 13.4%, Spain 13.4%, Italy 14.2%, the Netherlands 11.8% and the United Kindgom 9.1%. In terms of balance trade, the agri-food industry represented 13% of the total French exports and 9% of the total French imports. 1.2.2. The French agri-food industry in Europe The European agri-food industry turnover was evaluted at €956.2 billion in 2010. France, with 15% of market share, is the second agri-food market in Europe after Germany with 15.8% of market share; and before Italy (12.9%), the United Kingdom (9%) and Spain (8,4%). 1.2.3. Balance Trade The country is one of the biggest exporter of food in the world. In 2010, French agri-food exports increased by 12% and represented €57 billion. Food products counted for 71% of the total exports and agricultural products counted for 29%.
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Exports In 2010, France was the 4th largest exporter of agri-food products in the world following the USA (€87 billion), the Netherlands (€58 billion) and Germany (€52 billion). 70% of the French exports were traded within the European Union. The top consumers of French products are: Germany (€6 billion), Belgium (€5.5 billion), Great Britain (€4.8 billion), Italy (€5.1 billion), Spain (€4.2 billion) and the Netherlands (€3.1 billion). The same year, the two top sectors for exports were Wine and spirits and Dairy. Wine and spirits represented 13% of the total agri-food exports with €11.3 billion. Regarding dairy products, the sector counted for 9% of the total exports with €5.3 billion. Today, wines and dairy products are the most famous French products around the world. Imports In 2010, France imported €40.7 billion of agri-food products. Among the total importation, 70.7% were imported from the European Union and 29.3% from the rest of the world. The main suppliers of France are: The Netherlands (€5.4 billion), Spain (€5.1 billion), Belgium (€4.9 billion), Germany (4.9 billion), Italy (€3.2 billion) and the United Kingdom (€2.1 billion). Switzerland supplied up to €800 million in 2010. In terms of products, meat was the main product imported with €3.9 billion, followed by fish (€3.5 billion) and fruits ($3.2 billion). 1.2.4. Priorities of the market The sector is now driven by major priorities:
Since 2012, the French government has encouraged investment in Research and Development through tax credits and investment programs on the creation of cohorts
Environment has become a major concern for French consumers, pushing the industry to define their environmental goals and to adapt their production processes.
Also concerned by the nutritional aspect of food products, consumers have influenced the industry in getting more involved in this area. The government has also set up important programs: the National Program for Food («Le Programme National pour l’Alimentation - PNA) and the National Health and Nutrition program («Le Programme Nationale Nutrition Santé - PNNS).
Increasing export is one of the major priorities of the industry. With 97% of small and medium food businesses and 80% of them without any export experience, the government and the industry have implemented new strategies to allow these companies to start exporting such «Programme France-Export».
Sources: www.diplomatie.gouv.fr www.bbc.co.uk http://www.thomaswhite.com www.ukti.gov.uk www.passcreamode.com www.frenchfoodintheus.org www.epp.eurostat.ec.europa.eu Ministère de l’Agriculture, de l’Agroalimentaire et de la Forêt.
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