The apple market - France (2023)

1.2 Global and European markets

The global market is booming. According to a Senate report, production has risen from ** million tonnes in **** to ** million tonnes in ****. In other words, production has more than doubled (***) in just ** years. China, as the world's leading producer, has made a major contribution to this growth, doubling its output from ** million tonnes in **** to over ** million tonnes today. With a market share of **%, mainly oriented towards its domestic market, China dominates the ranking of the world's largest producers.

Ranking of largest apple producers World, ****, in tons Source: ****

The United States and Turkey complete the podium, but remain far behind the Chinese giant. In the northern hemisphere, several countries are also experiencing steady growth in production, while this growth has slowed down in the southern hemisphere over the last twenty years. Some northern countries benefited from the Russian embargo on European apples, initiated in the mid-****s, which was followed by strong production growth in countries such as Turkey, Ukraine and Russia itself.

European production is also booming, increasing by **% between **** and **** to reach over ** million tonnes in ****, according to FranceAgriMer figures. Europe can count on new major producers, such as Poland, with *.* million tonnes produced in ****, and Italy, with *.* million. France ...

1.3 The French market

French market value:

Apples have historically been an export-oriented sector of excellence in France, but this market has been experiencing a decline in production for several years. In order to estimate the size of the national market, we will calculate a high and a low estimate.

According to FranceAgriMer, French exports and imports were worth ***.* and ***.* million euros respectively in ****. Production represented a volume of *.*** million tonnes, the value of which we will estimate using minimum and maximum prices for apples sold in France. According toAgreste, *% of French production comes from organic farming, whose selling prices are often much higher than those of conventional apples, so we'll take this difference into account. According to FranceAgriMer, market sales prices range from €*** to €*,*** per tonne for conventional apples, and from €*,*** to €*,*** for organic apples. To find the upper and lower limits of our range, we perform the following calculation:

*.***Volume harvested**** + *.***Volume harvested***** + ********* - ********* = *** million

*.***Volume harvested***** + *.***Volume harvested***** + ********* - ********* = *.** billion

So, the national apple market is worth between *** million and *.** billion euros.

Domestic production:

National apple production France, **** - ****, in thousands of tons Source: ****

French apple production has fallen sharply in recent years, due to a combination of factors. These ...

1.4 Balance of trade

France used to be a major apple exporting country. However, export quantities have been falling steadily for several years.

French apple exports France, ****, in thousands of tons Source: ****

This decline in export volume and value is explained by the emergence of new players on the world market with selling prices well below French prices, see *.* for figures.

France's apple export partners World, ****, in metric tons and dollars Source: ****

France's main trading partners for apple exports are our European neighbors. Indeed, the countries of the European Union share many common standards, which ensures the quality of apples produced by member countries. What's more, since transporting apples is a delicate matter - they are fragile fruits, transported in tubs of water to avoid shocks - long-distance exports are not commonplace.

French apple imports France, **** - ****, in $ and tons Source: ****

France imports far less than it exports, so its trade balance is positive. Most imported apples are destined for processing and not for the fresh market. However, with rising prices for apples produced in France (***), it is not impossible that imports will increase in the coming years, and that foreign apples will occupy more and more places on our fresh markets.

France's main apple ...

2.1 A very popular fruit in France and around the world

The apple is France's favorite fruit, the most widely consumed by households, who buy **.* kg a year. The apple has a **.*% market share in terms of volume of fruit purchased, ahead of bananas (***). The penetration rate is very high, with **% of households buying apples at least once a year, according to Lapomme.org.

What do consumers think of apples? France, ****, in Source: ****

Above all, consumers recognize the benefits of apples, which are a first-rate aid to weight regulation. Indeed, apples have a high nutritional density, are low in lipids and carbohydrates, and are rich in fiber, which contributes to a feeling of satiety.

Apples also have the advantage of being able to be eaten in a variety of forms and at different times of the day.

Forms of apple consumption during meals France, ****, in Source: ****

when are apples eaten outside of meals? France, ****, in % Source: ****

Two apple varieties are particularly popular in France: Golden and Gala. Others include Pink Lady and Granny Smith. The diversity of varieties found in France is due to the country 's different climates and terroirs.

2.2 Declining demand

Annual household consumption of table apples has shown different trends in recent years.

change in quantities of table apples purchased by households (***) France, ****, in Source: ****

Although the above trend suggests that demand is on the rise, it has very recently plummetedbetween May ** and June **, ****, a situation FranceAgriMer has not seen since ****. This drop in demand, most likely linked to the decline in French purchasing power, has made destocking extremely difficult. Players in the sector are therefore forced to sell off their unsold products or sell them to third parties in order to free up storage space for the following season.

Purchases of fresh fruit by French households for home consumption France, **** - ****, in kg Source : FranceAgriMer Although volumes fell significantly, prices remained relatively stable. As a result, the average budget allocated to fresh fruit fell from €*** per household in **** to €*** in ****.

change in value of fruit purchases between **** and **** France, **** - ****, in Source: FranceAgriMer via Reussir Apples are the *ᵉ fruit to record the biggest drop in value of purchases between **** and ****. Quantities of apples sold have also fallen, after a fine surge during the **** confinement, due to the latter's lower availability.

Moreover, as mentioned in *.*, export demand is also falling: French ...

3.1 Value chain

Source: ****

From French or foreign growers to final consumers, the paths taken are varied, with or without processing. The value chain in this sector clearly illustrates the fact that apples from French orchards are all valorized. Indeed, apples that do not meet the criteria of size, firmness or shape required to be marketed fresh are not thrown away, but are destined for processing.

3.2 Producers in difficulty

In France, *,*** growers are involved in the apple production chain. The number of players involved in the entire value chain, from transport to processing and distribution, is much higher and difficult to quantify. **,*** hectares of agricultural land are used for apple growing, **% of which is reserved for organic farming. By ****, according to a Senate report, *,*** farms will be engaged in organic farming. These farms account for *% of total production.

The French market stands out for its organic farming and top-of-the-range products. There are several reasons for this decision. Firstly, French farmers have to comply with a large number of standards, more than most of their competitors, to the detriment of yields. Many crop protection products have been withdrawn from the French market: of the *** active substances authorized by the EU, only *** are authorized in France.

What's more, labor is particularly expensive in France, accounting for between **% and **% of costs on tree farms and packing stations.

To alleviate this problem, the French industry has decided to segment its market and position itself in niche markets. Products are therefore high-end, to the detriment of consumers with lower purchasing power. We are already seeing a reduction in the quantities purchased in the face of ...

3.3 Fruit stations and distributors

Fruit stations:

Once the apples have been harvested from the orchards, they arrive at the fruit stations. Their role is to transform the fruit received into marketable products. The process can be summed up in three stages.

The apples are first approved by the fruit station's Quality department. During this stage, the sugar content and firmness of the fruit are assessed. Apples judged to be of poor quality will not be kept by the station and can be used for a number of purposes: redirected to processing if their quality allows, used in livestock farming as animal feed or in agriculture as compost.

Secondly, apples that have passed quality control are stored in cold rooms at temperatures ranging from * to *°C. In order to slow down the apple's respiratory metabolism, and thus preserve it longer, the oxygen level in these rooms is lowered to around *%, compared with **% in the air we breathe. The apples are then pre-calibrated as orders come in, and sorted by size and variety.

Finally, the apples are packaged according to order. They can be packed by hand, in trays of one or more layers, in bags, in trays or in bushel - ** kg cartons intended for overseas ...

3.4 Processing: focus on apple juice

With consumers increasingly looking for products that are convenient (***) and quality, it is highly likely that the volume of apples destined for processing will continue to rise in the coming years, and that the quality of these processes will also increase.

The juice sector is a major market in France, accounting for *,*** direct jobs and **,*** indirect jobs. **% of juices are produced by some forty companies spread across the country. Some regions, however, have historic specialties, such as Brittany, Normandy and the Loire Valley, all of which are famous for their apple juice.

Apple juice accounts for **.*% of the market in volume terms, after orange juice and multi-fruits.

Market share of different juices France, ****, in Source: ****

The juice sector is strongly impacted by variations in the cost of apples, since the cost of raw materials accounts for **% to **% of production costs. Juice manufacturers also have to contend with soaring prices following the outbreak of the Russian-Ukrainian conflict. Energy and transport costs have risen sharply as a result: the EPEX price index for electricity was multiplied by * in August **** compared to ****, while the TTF index for gas was multiplied by three over the same period. and the price of road transport has risen ...

3.5 Processing: focus on applesauce

Apples are also widely consumed in compote form. In fact, in ****, **% of compote production came from apple blends (***) and comes in a variety of formats: jars, jars or gourds, which are driving growth upwards thanks in particular to the Materne group's Pom'Potes.

The compote market is particularly dynamic, growing by **.*% in volume between **** and ****, with production reaching ***,*** tonnes in ****. Sales in this market were estimated at ***.* million euros in **** by Iri via LSA.

Sales of compotes France, ****, € million Source: ****

In the compotes sector, too, there is a growing interest in products with no added ingredients and organically produced.

Sales of different compote ranges on ambient shelves France, ****, € million Source : LSA Sales of the different compote ranges sold in the chilled aisle France, ****, € million Source : LSA There is less interest in organic products in the fresh produce section, which can be explained by the wide range of products on offer in this section, with more advanced and fanciful tastes and blends that attract consumers.

The compote market is largely dominated by a few large groups.

Market share in value of compote manufacturers France, ****, in Source : LSA Materne's dominance is even more pronounced in the gourd market, thanks to its extremely popular Pom'Potes ...

4.1 Offer typology

The range of apples on offer in France is extremely varied, with several thousand varieties, and those available for purchase have their own specific prices. The table below shows monthly prices in euros for one kg of apples sold in supermarkets and hypermarkets (***) over the past year.

Source: ****

Prices depend largely on the variety. Organic apples are obviously among the most expensive, but some varieties, such as Reinette grise du Canada, are also sold at very high prices.

monthly change in price per kg of * apple varieties sold in supermarkets France, **/**** - **/****, in € Source: ****

Although prices do not follow a regular pattern over the year , they are nevertheless rising slightly and steadily, as will be analyzed in section *.*.

4.2 Higher and higher prices

Production difficulties are reflected in prices, which are rising steadily. This can be seen by observing trends in the farm-gate price index (***), which measures changes in the prices of products sold by farmers.

Gross farm-gate price indices, base **** France, **** - ****, in Source : Agreste This trend naturally applies to all apple varieties, including Goldens and Galas, the two most popular varieties in France. Gross producer price indices for agricultural products, base **** France, **** - ****, in Source : Agreste Gross producer price indices for agricultural products, base **** France, **** - ****, in Source : Agreste on the export market, the average price of French apples is estimated at $*.** per kilogram, well above the prices charged by our competitors. Italy Germany Belgium Poland Turkey Price differential with kg of French apples for export -**% -**% -**% -**% -**% French apples are considered too expensive and have difficulty selling internationally. The current challenge is to find a price level acceptable to buyers and growers, so as to be able to promote production in a high-end segment.

4.3 A segmented offering

The French market, positioned on high-end products, therefore targets consumers with high purchasing power. However, although the number of consumers interested in higher-quality products has been increasing for several years and is beginning to stabilize, these buyers consume very small quantities. In fact, **% of households were buying organic produce in ****, but the majority of these are small, occasional buyers who consume apples less and less often, according to a Senate report. These households consume apples on average five times a year, for an annual volume of around *.* kg. This trend can be explained by the fact that organic apples are on average twice as expensive as conventional apples.

This results in an overproduction that cannot be exported, as this type of product does not correspond to that valued by the export market. As a result, growers are forced to sell off their stocks to get rid of them. In ****, **% of organic marketers had to redirect their supply of organic fruit and vegetables to the conventional market. This solution resulted in a loss of earnings of €*** per tonne.

The risk of this development is that French apples will be reserved exclusively for the most affluent French households, with poorer households having to ...

5.1 Regulations

Apple production in France is subject to numerous regulations.

In particular, there is a specific mandatory marketing standard in accordance with amended EU regulation no. ***/**** Annex * part B. This standard imposes, among other things, classification into different classes (***) and provisions for sizing, presentation, marking, etc.

CEE ONU - FFV - ** (***) is an optional standard that defines the criteria to be met by apples of certain varieties after preparation and packaging.

The "Pommes - Calibrage au poids" interprofessional agreement defines a mandatory standard for all apples produced in France, whatever their category, except for apples intended for industrial processing. This standard defines sizing procedures by weight, with sizing ranges available in thisInterfel report. Marking and inspection instructions are also provided. This standard is valid until January *ᵉʳ, ****. A tool is also available for professionals who only have diameter calibration equipment.

As far as organic farming is concerned, certain specific standards must be met. Within the European Union, EU regulation ****/*** sets out the measures to be followed concerning the processing, distribution, import, control and labeling of organic products. A number of complementary regulations, listed on EUR-LEX, also apply. The list of substances authorized for use in organic farming is given in EU regulation ****/****.

5.2 Designations and certifications

Other tools can be used to certify the origin or quality of apples.

The Appellation d'Origine Protégée (***) is a European sign with value throughout the EU, awarded to a product whose every stage of production respects a recognized know-how in the same geographical area, giving the product its characteristics. In ****, there were *** PDOs in the agri-food sector.

The Appellation d'Origine Contrôlée (***) can be considered as a stage prior to the PDO. The AOC uses the same criteria as the PDO, and protects the designation throughout France. It also includes products not covered by the European designation, such as forest products.

Label Rouge is a French label awarded to products which, due to their production or manufacturing conditions, are of a higher quality than other similar products usually marketed.

The Protected Geographical Indication (***) is reserved for agricultural products, raw or processed, for which certain characteristics, such as quality or reputation, are linked to their geographical origin. Among agri-food products, *** PGIs were registered in France in ****.

In addition to these various designations and certifications, industry players are increasingly committed to ensuring that their products are easily traceable, from consumer to producer.

6. Segmentation

• La Vie Claire
• Bio c' Bon
• Naturalia
• Biocoop
• Auchan groupe
• Casino Groupe
• E.Leclerc
• Carrefour Groupe
• Innocent
• Joker (Eckes Granini France)
• Tropicana
• Andros Groupe
• Materne (Bel groupe)
• Charles & Alice
• Innatis Developpement
• Blue Whale