Summary of our market study

The French butter market in 2023 is estimated at over 2 billion euros.

Internationally, the market is estimated at over 25 billion euros.

In France, butter is both a traditional and essential ingredient. The country is the world's leading consumer of butter, with around 8 kilograms per person per year.

The butter market is highly concentrated, with 12 companies dominating the sector.

Butter is mainly distributed through supermarkets (50% hypermarkets and 25% supermarkets).

Consumption of non-organic butter is stagnating. Organic butter, on the other hand, is growing strongly.

As the age of the consumer increases, so does the volume of butter purchased.

The price of butter rose by 24% between January and April 2023.

French butter production is estimated at 1.3 billion euros, exports at 600 million euros and imports at 1.3 billion euros.

Dairy producers are under pressure from variable factors such as weather conditions, competition and the abolition of EU milk quotas.

sales of "light butter" are on the increase.

French players in the butter market

  • Lactalis is the giant with its Président brands, and Bridel belongs to the Besnier family.
  • Savencia-Bongrain is another important entity, owned by the Bongrain family.
  • Cooperatives are very important in the market
    • Eurial, with its Grand Fermage brand
    • Laïta, under the Paysan Breton brand
    • Isigny-Sainte-Mère, renowned for its Beurre d'Isigny butter
    • Célia
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Summary and extracts

1 Market summary

1.1 Definition and scope of the study

Butter is a solid emulsion of fat globules, air and water, produced by churning milk or cream and used as a food. The earliest evidence of butter dates back to 2000 BC.

France, a country renowned for its gastronomic heritage and cuisine, is a major player in the butter sector. Indeed,France is the world's leading consumer of butter, with around 8 kg per person per year.

The French market has suffered from a degree of volatility in recent years. This is due to several key macroeconomic and political events: firstly, in 2015 the EU abolished its quotas for dairy producers. This led to a collapse in prices, resulting in a sharp contraction in market size against a backdrop of falling incomes. Furthermore, in 2017 French farmers experienced another shock to butter supplies, with the rising price of cow's milk, but also poor weather conditions. The rise in cost was due to political decisions in 2015; production slowed as farmers became wary of the possibility of selling off their stocks. Meanwhile, demand remained stable, pushing prices up drastically. In 2016, a tonne of butter cost 2,500 euros; by 2017, it had risen to 7,000 euros. Consumers did not bear this cost, as retailers (supermarkets and hypermarkets) were unwilling to raise their prices , and producers were therefore forced to cut their margins.

In France, the butter market is highly concentrated. According to ACOSS, there were 12 companies registered under NAF code 10.51B ("Butter manufacturing") in 2022.

On aglobal scale, the market is expected to grow at an average annual rate of 4.52% until 2025. This growth comes against a backdrop of increased use and demand for butter in food processing, but also because demand for food products containing butter (e.g. pastries) is on the rise.

overall, consumption of butter and margarine is declining, while that of organic butter is rising steadily.

1.2 Strong growth on the global market

Global butter market size World, ****-****, in billions of US dollars Source: ****

*Forecasts

The global butter market is expected to grow strongly at a CAGR of *.**% to ****.

This growth is driven by increased use and demand for butter in food processing. In addition, consumer demand for foodservice foods is increasing, ...

1.3 A volatile domestic market

butter production in France is relatively volatile, as shown in the following graph:

Butter market size (***) France, ****-*****, in millions of euros Source: ****

In ****, the EU as a whole saw a drop in butter production, against the backdrop of the end of milk quotas. Since the ****s, EU farmers had been ...

1.4 International trade

In this section, we analyze the butter trade in France. In particular, we use the UN Comtrade database and the code ****** - Dairy products; milk derivatives, butter.

Foreign trade in butter France, ****-****, in million US dollars Source: ****

The graph above shows France's butter trade with the world between **** and ****, as ...

2 Demand analysis

2.1 Characteristics of French consumers

Geography

Butter consumption is highly heterogeneous across France, as shown in the following graph:

Breakdown of butter purchases by volume France, ****, in Source: ****

In fact, butter consumption in the West is over-represented. This can be explained by the fact that this region has a culinary culture in which butter plays a ...

2.2 Butter consumption

Despite the fact that France is the country with the highest per capita butter consumption in the world, butter consumption by French households is falling. This has been penalized by the decline of breakfast in French eating habits. Although this meal accounts for **% of butter consumption, it is losing popularity. [***]

The ...

2.3 Demand trends

Cyclicity

Search interest for the term "Butter France, ****-****, in Google Trends index Source: ****

The graph above represents the proportion of searches for a given term in a given region over a given period of time, relative to when it was most searched for (***). Thus, a value of ** means that the ...

2.4 France's favourite butter brands

The graph below is based on OpinionWay's survey of French consumers' favorite brands in March ****. These are respondents' answers to the question "Do you like this brand of butter?" for each brand, the percentage corresponds to the proportion of respondents who answered "yes".

Président is France's favorite butter brand, with ...

3 Market structure

3.1 Market overview

Number of companies and employees in the butter manufacturing sector (***) France, ****-****, in units Source: ****

The French butter market is highly concentrated, with just ** companies registered under NAF code **.**B in ****. Between **** and ****, this number has remained unchanged, implying that the stability and market power of existing companies are significant. The ...

3.2 Production

in order to observe variations in butter prices, it is interesting to study the evolution of production in terms of value and volume:

Butter production, in value and volume France, ****-****, in millions of euros and thousands of tons Source: ****

We can see thatbetween **** and ****, the value of production increased faster ...

3.3 Distribution

Butter sales by distribution channel France, ****, in percent Source: ****

Butter is mainly bought in hypermarkets, where almost half (***) of sales took place in ****. Supermarkets come in second with over a fifth of sales. E-commerce, which is expanding for all products, accounted for *.*% of butter sales in ****, up from *.*% in ****. Convenience store ...

3.4 A market facing volatility due to uncertainty

Dairy farmers are facing uncertain conditions on the butter market. Firstly, the European Union quotas put in place to alleviate this uncertainty were abolished in ****. In addition, production is uncertain due to unstable weather conditions. This weather instability is set to increase in the coming years with climate change (***). Finally, competition ...

4 Offer analysis

4.1 Product typology

There are many different types of butter, depending on the way it is produced or the additives used. Below is a comprehensive list:

Beurre cru or raw cream butter: this butter is made exclusively from "intact" cream, in the sense that it has not undergone any sanitizing treatment, apart from cooling ...

4.2 Price analysis

The following graph shows the evolution of the consumer price index for butter over the last ten years:

Trend in the consumer price index for butter France, **** - **** Source: ****

Since ****, the price of butter has risen significantly, a trend that will be exacerbated in **** in the context of inflation in the ...

4.3 Supply trends

A fall in milk production against a backdrop of unfavorable milk powder prices and a heatwave: A sustained rise in butter prices Tensions in the distribution sector Increased temptation to export

Inflation and butter prices

Butter has not escaped the general rise in prices, and even seems to be one of ...

5 Regulations

5.1 Regulations

The regulations covering butter are summarized in the following legislation:

Regulation (***) Regulation (***) Decree no. **-**** of December **, **** regulating the manufacture and sale of butter and certain dairy specialties. Decree no. **-**** of December **, **** regulating the manufacture and sale of margarine and other fat blends not exclusively of dairy origin.

In addition, ...

6 Positioning the players

6.1 Segmentation

  • Savencia Fromage & Dairy groupe
  • Eurial Coopérative
  • Isigny-Sainte-Mère (Coopérative)
  • Sodiaal Groupe (Coopérative)
  • Lactalis Groupe
  • Loyez Woessen - Abondia
  • Terra Lacta Cooperative

List of charts presented in this market study

  • World butter market size
  • Per capita butter consumption
  • Butter manufacturing sales (domestic and export markets)
  • The impact of Covid-19 on the butter market (NAF 10.51B)
  • Foreign trade in butter
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Latest news

Lactalis group considers a pause in acquisitions - 18/04/2024
  • China's demand for milk powder collapsed by 38% as a result of the economic crisis.
  • Japan's cheese imports fell by 7%. In the Philippines, by 26%, and in Indonesia, by 13%.
  • France, Lactalis' biggest market, accounting for almost 20% of sales
  • sales of 29.5 billion euros, up 4.3%, thanks in part to its four acquisitions.
  • Lactalis remains one of the world's Top 10 food companies
  • 4 operations by 2023:
    • Marie Morin in Canada (sales €25 million), a Canadian specialist in baked desserts
    • DPA (350 million euros), the world's leading yogurt producer.
    • Italy's Ambrosi (400 million euros), with its Grana Padano and Parmesan cheeses.
    • British dairy specialties distributor Hawkridge (9 million euros in sales)
Suppliers refuse to accept Lactalis' proposed milk price increase - 05/02/2024
  • - The price revised in January by Lactalis is 405 euros per 1000 liters, increased to 420 euros per 1000 liters in 38/32 for February.
  • - Taking all premiums into account, the remuneration paid to producers was 460 euros per 1000 liters for the first two months of the year.
  • - Unell, which represents over 4,000 dairy farms, delivers over 2 billion liters of milk to Lactalis.
Président, the billionaire brand that shaped the destiny of Lactalis - 13/11/2023
  • President brand sales: 3 billion euros
  • Brand age: 55 years
  • Increase in Camembert production in ten years: from 60,000 to 250,000 units
  • Current Camembert production: 500,000 units
  • Main production site: Domfront plant in the Orne region of France
  • Camembert price: less than 2 euros
  • Percentage of brand volume sold under private label: one-third in France and worldwide
  • Number of plants producing Président products outside France: over thirty.
Lactalis: portrait of Emmanuel Besnier, one of France's most secretive bosses - 15/10/2023
  • Sales 2022: 28.3 billion euros, Net income: 384 million euros
  • Number of employees: 85,000 worldwide
  • Number of dairies and cheese factories: 272 in 51 countries, including 66 in France
  • Quantity of milk collected: 22.6 billion liters worldwide
  • Breakdown of sales by product: cheese (40%), milk (19%), ultra-fresh (14%), butter and cream (12%), ingredients and nutrition (9%), other (6%)
  • Major acquisitions
    • Bridel in 1990,
    • nestlé's Roquefort cellars in 1992,
    • Galbani in 2006,
    • Parmalat in 2011,Parmalat acquisition cost: 4.5 billion euros.
    • l'Etoile, Stonyfield and Siggi's cheese factories in 2018,
    • kraft-Heinz cheese business in 2020,
    • Ambrosi in 2023.
Sodiaal launches a campaign to support its Candia, Yoplait and Entremont brands - 09/09/2023

Coopérative Sodiaal brings together three major brands: Candia, Yoplait and Entremont. The cooperative brings together 16,000 farmers in 72 départements. The three brands are present in 9 out of 10 households.

Lactalis' Brazilian takeover held up - 27/07/2023
  • Lactalis, the world leader in dairy products, has signed an agreement to acquire DPA, a major player in the Brazilian dairy sector, for 125 million euros
  • With this acquisition, Lactalis would increase its workforce in Brazil to 10,000 employees.
  • DPA was created in 2003 by Nestlé and New Zealand's Fonterra.
  • It currently employs 1,300 people.
  • DPA has two factories in southern Brazil. Lactalis already has a significant presence in Brazil, with 23 industrial sites in eight states.
  • Brazil is Lactalis' fifth largest market.
  • Lactalis already owns thirteen dairy brands in Brazil, including Parmalat, Batavo, Itambe and Pocos de Caldas.
  • DPA brands include Chambinho, Chamyto and Chandelle.
  • The Brazilian Council for Economic Defense (CADE) has issued restrictions on the acquisition of Parmalat

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Savencia Fromage & Dairy groupe
Eurial Coopérative
Isigny-Sainte-Mère (Coopérative)
Sodiaal Groupe (Coopérative)
Lactalis Groupe
Loyez Woessen - Abondia
Terra Lacta Cooperative

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