The frozen food market - France

1.2 The global market

According to a study by Grand View Research, the global frozen food market is estimated at $***.** billion in ****. Average annual growth is expected to be *.*% between **** and ****, generating sales of $*** billion by ****. The creation of supermarkets and hypermarkets has driven market growth in recent years.

The trend in frozen food market size World, ****-****, in billions of US dollars Source: ****

Europe is the world's largest frozen food market, with a market share of over **% in ****. However, the Asia-Pacific region will grow fastest, with a CAGR (***) of *.*% between **** and ****. [***].

Europe's biggest frozen food consumption markets are Germany, the UK, and France. However, the countries with the highest per capita consumption by volume (***).

Such consumption in a mature market presupposes the existence of an efficient distribution chain, integrating export and import processes abroad (***) and major brand distribution to end consumers, whether in supermarkets or at home.

Consumers are looking for convenient meal options, including frozen foods that require little or no preparation, to overcome time constraints linked to work, childcare, etc. The growing reliance of consumers, particularly millennials, on ready-to-cook foods due to time constraints is also expected to drive the market over the forecast period. The chart below shows, for example, that ready-to-heat ...

1.3 The French frozen food market

The frozen food market has been particularly turbulent in recent years following the horsemeat scandal from the Spanghero factory. It turned out that Findus had been selling products labeled "pure beef" when they were made from horsemeat. The ensuing investigation revealed the weaknesses of meat traceability in Europe and eroded consumer confidence: **% of consumers do not trust information on packaging. [***]

However, this market seems to have emerged from these years of difficulty. Indeed, Syndigel, the European Federation of Trade and Distribution of Temperature-controlled Products, Ice Cream, Frozen Foods, and Chilled Foods, has revealed the size of the frozen food market in France in ****: * billion euros in sales and * million tons of goods by volume. Moreover, according to the union, **.*% of households in France consume frozen foods. [***].

Focussing on companies specializing in frozen food retailing, using data from the INSEE data, we can see that frozen food retail sales rose significantly between **** and **** (***), following years of stability between **** and ****. With total sales of *.** billion euros in ****, retail sales accounted for around a quarter of the total frozen food market. In ****, sales were estimated at *.** billion euros.

Sales (***) of frozen food retailers France, ****-****, in billions of euros Source: INSEE - INSEE Note ...

1.4 Foreign trade

Given the variety of frozen products on the market, in this category, we focus on foreign trade in frozen beef, one of the most critical segments of the European frozen food market.

Using the UN Comtrade website, it is therefore possible to obtain the graph below corresponding to foreign trade associated with code **** - frozen beef. It can be seen that France is mainly an importer of frozen beef, which explains its low coverage rate during the period studied. However, its coverage rate increased in **** following a very significant rise in exports, which rose from **.* to ***.* million dollars, an increase of **%.

Foreign trade in frozen beef France, ****-****, in millions of US dollars Source: ****

As far as imports of frozen beef are concerned, the central countries exporting to France are European, notably Ireland (***).

Main countries of origin of frozen beef imports France, ****, as % of total Source: ****

French exports of frozen beef are fairly concentrated, with over half of exports going to the two main destinations, Belgium (***). France therefore appears to be pretty dependent on these two countries, with the proportion of exports to other countries falling below *% for other countries.

Main destinations for frozen beef exports France, ****, as % of total Source: ...

1.5 Covid-19 pandemic boosts frozen food market

The Covid-** crisis has positively impacted the frozen food market in France. Indeed, with government-imposed restrictions such as confinement and restaurant closures, the French have been led to spend more time at home, turning to frozen foods to facilitate their daily diet.

More specifically, the sweet frozen food segment saw its sales increase in value by **% between March and May ****. Similarly, sales rose by **% in value over March-April in the savory frozen food category. [***]

Focusing more specifically on the evolution of the frozen food retail sales index in **** compared to ****, we can observe a particular increase in the sales index during confinement periods in France, notably an increase of around **.*% between February and March ****.

Sales index trends in frozen food retailing France, ****-****, sales index - base *** in **** Source: ****

Impact on market players The health crisis has positively impacted France's frozen food market leaders. Picard, the market leader, attracted ***,*** new consumers over the year, while Thiriet, its main competitor, recorded the arrival of ***,*** new consumers. Both companies' sales increased, with Picard's jumping by almost **% (***). Thiriet recorded significant sales increases of +***% in-home delivery and +***% in click-and-collect and left-luggage services. Supermarkets also benefited from this trend, with double-digit growth in the frozen food ...

2.1 Fast food, a growth driver for frozen ready meals

The fast food market growth drives demand for frozen products, mainly frozen-ready meals. With increasingly busy lifestyles, consumers are looking for practical solutions for their meals. Frozen ready meals offer a quick and convenient option while allowing consumers to control ingredients and choose healthier options. This trend is contributing to the growth of the frozen food market.

While the French out-of-home catering market has yet to return to its pre-Covid levels, the same is true of the fast-food sector , which in summer **** is reporting its highest figures since ****, with footfall on a par with **** and *% growth over June and July **** vs. ****. The recovery is here to stay for the food service sector and is particularly good for the fast-food market. The latter has even opened new outlets, gaining market share at the expense of traditional restaurants and company canteens. This is due to the growth in delivery and takeaway sales during the health crisis, facilitated by the fast-food model itself, sales of which have not fallen back despite lifting restrictions[***].

In ****, NPD Group estimates that the out-of-home catering market will see a *% growth in spending compared to ****, and an **% decline compared to ****. Before the crisis, according to Gira Conseil, the French ...

2.2 Foodservices

Another demand segment, Business to Business this time, is the sale of frozen products to catering establishments. These include :

Educational establishments Retirement homes and social establishments Companies and government bodies Hospitals and health establishments Catering

Education

There will also be a slight increase in the number of public and private secondary schools between **** (***), boosting demand for frozen products for canteen meals.

Growth in the number of public and private secondary schools France, ****-****, in number of schools Source: ****

Retirement homes and social establishments

France has a senior population aged ** or over of almost **.* million, representing **.*% of the national population. The table below shows the proportion of seniors by age group:

Distribution of senior population by age bracket, France, ****

Age group **-** years **-** years **-** years **-** years **+ years Total Number of people * *** *** * *** *** * *** *** * *** *** * *** *** ** *** *** % of the total number of seniors **,*% **% **% **,*% **% ***% These data can also be seen in the graph below:

Senior population France, ****, in number of people Source: ****

To accommodate this growing population of elderly people, care facilities provide seniors with day-to-day assistance. In both retirement and nursing homes, catering services are provided to feed the people living in the facilities. Food distribution in homes for the elderly can be carried out ...

2.3 Traditional catering

Restaurants can call on wholesalers for frozen food deliveries as part of their B*B business.

Trends in French household consumption of catering services

The graphs below illustrate several indicators representative of the traditional food service market (***).

Number of businesses registered under NAF code ****A (***) France, ****-****, in number of establishments Source: ****

NAF code **.**A "Commerce de gros de produits surgelés" (***) accounts for the decline in the number of establishments since ****. This drop between **** and **** follows the decrease in traditional catering businesses, underscoring the link between the two sectors.

Trend in the number of establishments in the frozen food wholesale sector France, ****-****, in number of establishments Source: ****

However, according to INSEE estimates, sales in the traditional catering sector are set to pick up again in ****, which should stimulate demand for frozen foods:

Size of the traditional food service market France, ****-****, in billions of euros INSEE

3.1 BtoC distribution - Food superstores

The business-to-consumer segment corresponds to the distribution between a company and a consumer.

A survey carried out by YouGov in **** gives an idea of the distribution channels for frozen foods preferred by the French.

Answer to the question "Which retailer do you usually buy your frozen food from?" France, ****, in Source: ****

In terms of sales, GSAs (***) come out on top, with total sales of *.* billion euros in ****, compared with ***.* million euros for specialist retailers. [***]

Supermarkets/hypermarkets

When it comes to selling frozen foods to consumers, it's interesting to distinguish between two types of chains:

generalists, who offer a variety of products that are not restricted to frozen foods; specialists, whose core business is frozen foods.

Among the generalists, Carrefour, E. Leclerc, and Intermarché stand out in particular: as can be seen from the graph below, these three brands have a **% share of the supermarket market.

Market share of supermarket groups in France, ****   Source: ****

Products can be sold in different types of stores: hypermarkets, supermarkets or hard discount outlets. However, other forms of distribution have emerged in recent years, such as generalist online - drives.

3.2 B2C distribution - specialized channels

Among the most important are Picard, Thiriet, and Ecomiam. [***]

Picard

Picard, with its *,*** stores in France, remains the undisputed leader in the specialist retail channel,by the beginning of ****, Picard will have *,*** stores. The company achieved sales of *.* billion euros in ****, a figure stable compared with previous years. Picard also has ** snack bars located in various establishments such as companies, hospitals, and schools. The brand's product range includes *,*** frozen products, *** of which are savory, with ** organic products and *** new products launched in ****. Green beans are the brand's flagship product, with ** tons sold daily. Finally, Picard is committed to offering **% of its products of French origin and guarantees ***% French sourcing for beef.

Picard is focusing on several areas of development to strengthen its brand and meet consumer expectations. The company is committed to improving its offering by reducing packaging and eliminating controversial ingredients such as nitrite. It is also pursuing its efforts by obtaining certifications such as "sustainable fishing." With bold ambition, Picard plans to launch *** savory innovations by ****. At the same time, the company is accelerating the creation of local and fair-trade organic channels, reinforcing its commitment to sustainability and fairness. As for connected snack bars, Picard plans to open ** new ...

3.3 Business to Business distribution

Business-to-business distribution, which involves the delivery of frozen products between two companies, accounted for **% of the frozen food market in **** according to Unigrains data. This type of distribution can occur between a frozen food manufacturer (***).

Gira Foodservice has collected data on this distribution segment. This data dates back to **** but gives an idea of the relative importance of the sub-segments in relation to each other.

Breakdown of BtoB distribution networks   Source: ****

Wholesalers (***) offer a wide range of products to downstream companies and then deliver them. On the other hand, logistics providers like Martin-Brower France fulfill a delivery role between the manufacturer and the consumer company. Cash & Carry companies, such as M&M Quality Food, enable companies to come to the same place at all times to obtain their supplies - this can be compared to large-scale distribution for companies.

As can be seen from the chart above, frozen food wholesalers control the lion's share of the market (***). Once again, the market is highly concentrated: in ****, **% of the market was in the hands of * players.

Although these figures have undoubtedly changed over the years - Transgourmet now achieves sales of *.* billion euros, compared with $*.** billion for Sysco France, the result of the ...

4.1 Frozen products on the market

To build an overview of the frozen food offer, we can analyze the request of Picarda specialized retailer. The company distinguishes between :

fruit and vegetables meat and poultry fish and shellfish

These dishes can be sold in various forms:

aperitifs starters, tarts, and salads ready-made meals breads and pastries pastries ice creams and sorbets

Next, it is possible to analyze the offer aimed at food service professionals by studying that proposed by one of the leaders in the segment, PassionFroid for the food service market.

Breaks (***) Starters (***) Seafood (***) Meat (***) Poultry (***) Vegetarian solutions (***) Complete dishes (***) Toppings (***) Dairy products (***) Desserts (***)

Source: ****

4.2 Low prices and frozen food prices

Prices for private customers

By analyzing prices of Picard products, we can establish that they are :

between *.** euros and * euros for vegetables ; between *.** euros and * euros for fruit; between * euros and * euros for meat and fish products.

Prices for food professionals

When selling frozen products to food professionals, it is essential to note the existence of a quotation created on the initiative of the former Syndigel frozen products union in partnership with the RNM (***). This index tracks wholesale prices for certain frozen foods. Here are a few examples based on France AgriMer data for July ****.

Source: ****

4.3 Towards the obsolescence of deep-freezing?

Hydroprocessing protection: a revolution?

Agro Media notes that advances have been made in food preservation recently. For example, the Centre de Développement Bioalimentaire du Québec has developed a new food preservation process: the "hydroprocess de protection," or HPP for short.

HPP involves vacuum-packing pressure-resistant foods and subjecting them to high water pressure, eliminating bacteria and extending the typical shelf life of foodstuffs by three times, limiting the need for freezing or deep-freezing. Meat is particularly well-suited to this process, whereas other foodstuffs, such as bread and fish, are much less so.

The process is costly but reduces food waste - ground beef can be kept in the fridge for ** to ** days.

A diversified offering

The frozen food offer, which today numbers over *,*** items according to Agro Media, is also expanding to meet new consumer expectations.

PassionFroida, a frozen food wholesaler, is offering more organic or considered healthy products. A review of its page dedicated to new products reveals the marketing of :

conchiglie and quinoa salad with mango and goji berries [***] ; a spinach and ricotta veggie omelet [***].

The company, which is not the only one to position itself in these recent segments, is probably aiming to reach a broader customer ...

5.1 Respecting the cold chain

All players in the frozen food market (***) are obliged to respect the cold chain, i.e., to ensure that frozen foods are kept at a negative temperature that complies with regulations. The core temperature must always be below -**°C and the ambient temperature between -**°C and -**°C. This implies that, in the event of a break in the cold chain, the parties involved are obliged to discard the frozen products concerned to prevent disease development. [***]

European Directive **/***/EEC of December **, ****, transposed this rule into European law while simultaneously fleshing out the regulations. Manufacturers may only freeze products when they are still in a perfect state of freshness. Depending on the product, this period may vary:

fruit and vegetables: a few hours after harvest; meat and poultry: after slaughter and cutting; fish: directly on the boat after fishing.

An international agreement on the international carriage of perishable foodstuffs and on the special equipment to be used for such carriage, abbreviated to ATP, lays down rules for transporting frozen food.

Refrigerated transport companies must use special equipment (***). The latter must be able to maintain a temperature always below :

- **°C for butter ; - **°C for all other frozen foods; - ...

6.1 Segmentation

The following segmentation is used:

• Auchan groupe
• Picard Surgelés
• Place du Marche (Toupargel)
• Thiriet
• Maximo
• Pomona Groupe (Passion Froid)
• Sysco Groupe - Davigel
• Transgourmet France
• Martin-Brower France
• Orly Gel
• M&M Quality Food
• Ecomiam
• Boncolac
• Bonduelle Groupe
• Ajinomoto
• Escal Sea Food
• Carrefour Groupe
• E.Leclerc
• Findus France
• Fleury Michon
• Iglo (Nomad foods)
• McCain Food
• Sodebo
• Cargill France
• Routhiau Groupe
• Traiteurs de Paris
• GEL 2000 (Gimbert surgelés)