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Summary of our market study
The French food retail market is worth around 190 billion euros
The global supermarket market is worth over $6,500 billion
This expansion is due to the rapid growth of emerging markets, particularly China.
Trends in food retailing on the French market
Sales of food superstores are down slightly.
Consumers prefer supermarkets, which hold 53% of market share and are gaining ground at the expense of hypermarkets.
The hard discount sector, dominated by Lidl and Aldi, accounts for just under 11% of the market in France.
11,000 French communes have a food store.
Around half of all households consider their monthly food budget, which ranges from around 200 to 500 euros, to be too high. Overall, the food budget remains stable.
When choosing their store, French consumers give priority to factors such as value for money (52%), availability of the desired product (50%), store location (45%) and the presence of quality fresh produce (45%).
Interest in fresh, local and minimally processed foods is growing, as is the frequency with which organic products are purchased. These preferences are even more pronounced among younger consumers.
French hard discount players
Traditional supermarket and hypermarket giants: Leclerc, Carrefour, Auchan, Intermarché, Super and Hyper U
- Hard discounters: The two German heavyweights: Lidl and Aldi
- Netto, the hard discount chain of the Les Mousquetaires group
- Supeco, the Carrefour group's hard-discount company, which has already made a name for itself in Spain
- Casino group's Leader Price
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Summary and extracts
1 Market overview
1.1 Definition and scope of study
The hard discount concept, characterized by medium-sized stores focusing on food products at reduced prices, expanded significantly in France from the 1990s onwards. originally introduced in the country by German chains Lidl and Aldi, it was later adopted by major French retailers such as Netto and Leader Price.
However, since the 2010s, this model has encountered challenges on the French market. Its evolution has been so marked that it's questionable whether it's still appropriate to use the term "hard " to describe it. Nowadays, it's not uncommon to hear the terms SDMP (supermarkets with predominantly own-brand brands) or EDMP (retailers with predominantly their own-brand brands) used to describe these brands.
The global supermarket market is dynamic, and is expected to grow at a CAGR of 4.5% between 2022 and 2030. What's more, the Schwarz Group is the world's leading discount retailer. As for the French food retail market, it operates as an Oligopoly, with 3 major groups(E.Leclerc, Carrefour and Les Mousquetaires) sharing nearly 60% of total sales.
In France, the discount market is varied and made up of many players, both food and non-food discounters . by way of illustration, according to an EY study, in 2023, the French people's favorite discount chain will be Action. The market is therefore very dynamic and very popular with the French, and even more so since inflation.
Discount chains have been seeking to modernize over the last ten years to attract more and more customers. The arrival of a new range of first-price products on the shelves in 2024 could continue to attract new customers.
1.2 The global supermarket market: overview and main characteristics.
Research and Markets estimates the global supermarket and hypermarket market at $*,*** billion in ****. This market is expected to grow at a CAGR of *.*% between **** and ****.
Global food retail market size World, ****-****, in billions of dollars Source: ****
This is a dynamic market that should see continued growth over the coming ...
1.3 The French food superstore market
The food retail market is worth around*** billion eurosin France. Some **,*** French towns have a food store.
The French market isoligopolistic marketa few major groups share the bulk of the market:
Market shares of food retailers France, **** (***), in % and points Source: ****
E.Leclerc remains the market leader, with market share up ...
2 Demand analysis
2.1 French household food consumption habits
How often do the French go to the supermarket? France, ****, %, % source: opinionWay
The majority of respondents visit supermarkets once a week(***), underlining the prevalence of regular visits to make essential food purchases. Also, **% of respondents say they never visit a supermarket, which may reflect the use of alternative purchasing channels such ...
2.2 The French perception of discount
The qualities of hard discount chains France, ****, %, %, %, %, %, %, %, %, %, %, %, % Source: ****
The graph above shows that **% of respondents perceive these chains as offering good value for money, underlining the importance of the economic factor in their purchasing choices. Similarly, **% consider these brands to bethe least expensive, confirming their reputation as suppliers of competitively priced ...
2. 3 Inflation makes hard discount stores more attractive
Inflation rate trend France, ****-****, %, %, %, %, %, %, %, %, %, %, %, %, % Source: ****
Inflation will rise sharply in ****, to*.*%. **** was also a year of high inflation, despite a slight decrease compared to ****. This inflation has had a major impact on supermarket prices.
Impact of inflation on French consumer behavior France, ****, %, % Source: ****
With the rise in food prices, consumption ...
3 Market structure
3.1 Value chain
Source: ****
Hard-discount food chains are fairly autonomous in terms of sourcing, with most of the products available in stores being the chain's own brands. Once the products have been produced, they are sent to the group's warehouses and logistics platforms before being distributed to the chain's stores and finally sold to ...
3.2 Number of companies and number of employees
Number of food stores by format France, ****, by value Source: ****
As the graph shows, the majority of stores in France are convenience stores. Moreover, the hypermarket format is the least represented in France. However, it should be noted that the hypermarket is much larger in terms of sales area, ranging from ...
3.3 Will the discount market soon be saturated?
The growing popularity of hard-discount stores in France has aroused keen interest among suppliers looking to enter this lucrative market segment. However, this positive momentum could soon come up against a major obstacle: market saturation. Indeed, despite the attractive opportunities offered by the small-price sector, competition is intensifying as new brands ...
4 Offer analysis
4.1 The hard-discount food chain business model
The traditional hard-discount business model is based on a number of criteria:
A very low diversity of products on offer, focusing on the basic products that consumers buy on a daily basis. So, * product = * need, i.e. one - well-chosen - reference is offered for each type of product. This enables ...
4.2 Non-food discounters
In the French hard discount landscape, the diversity of chains is not limited to food discounters. In fact, alongside food giants such as Lidl and Aldi, a multitude of non-food discounters are also thriving, offering a varied range of products from household goods to DIY, home decoration and fashion.
These non-food ...
4.3 Discounters launch first-price product ranges
Lidl is currently undertaking a revolution in its offer by launching a range of first-price products on its shelves. This move is designed to fill a gap in its assortment compared with competitors such as Leclerc, which already has an extensive range of first-price products with its Eco+ brand, for example. ...
4.4 Discounters looking to modernize and enhance their image
The shift to smart and soft discount was launched by Lidl in ****
In ****, at a time when hard discount was losing market share, Lidl launched a vast plan to modernize its stores, making them more welcoming - and putting an end to the concept's "downmarket" and austere image - as well ...
5 Regulations
5.1 The law on the modernization of the economy, an advantage for discounters
The French Law on the Modernization of the Economy, commonly known as the LME, was officially promulgated on August *, ****. Its main aim is to remove obstacles hindering the development of certain sectors, thereby promoting job creation and lowering prices.
The provisions of the Law on the Modernization of the Economy cover ...
5.2 Anti-waste law for a circular economy (Loi AGEC)
The mass retail sector is impacted by the AGEC law on several points: food waste with unsold products and the use of plastic with the reduction of single-use plastic packaging.
Management of unsold goods:
The mass retail sector is responsible for nearly **% of food waste in France. in France, ** million tonnes ...
5.3 Loi Descrozaille
The Descrozaille law (***).
As soon as it comes into force, promotions for non-food products may not exceedexceed **%. Initially presented as a measure to protect manufacturers in their negotiations with supermarkets, this law has not met with unanimous approval.french people rely heavily on promotions to reduce their spending.
Although our study ...
6 Positioning the players
6.1 Player segmentation
- Lidl France
- Aldi
- E.Leclerc
- Intermarché ITM Les Mousquetaires
- Système U
- Auchan groupe
- Action France
- Gifi France
- Netto (Intermarché les mousquetaires)
- Aldi France
- Miniso
- Hema
- Normal
- Stokomani (Zouari Groupe)
- La Foir'Fouille
- Noz Arrivages
- B&M France
- Centrakor Stores
- Maxi Bazar (Zouari Groupe)
- Le Marché aux Affaires
List of charts presented in this market study
- Size of the global food retail market
- Ranking of the largest supermarket groups by sales figures
- Leading discount retailers worldwide by grocery sales
- Market share of food distributors
- Trends in hypermarket and supermarket sales
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Latest news
Intermarché, Auchan and Casino launch central purchasing group with Aura Retail - 25/09/2024
- 1. Completion of an alliance initially announced in April with a planned ten-year term between Intermarché, Auchan, and Casino (including Monoprix, Franprix), which are respectively France's 3rd, 5th and 7th largest food retailers.
- 2. Aura Retail will be organized into five separate entities, two of which will be based outside France. Main activities include the management of three central purchasing units for foodstuffs, run by Intermarché, with two locations in Massy.
- 3. One will operate synergies for nearly 200 national brand manufacturers, and another will aim to improve market access for European food manufacturers.
- 4. Aura Retail International Food Services, based in Brussels, will negotiate with major multinational industrial groups and offer synergies in several European countries (Portugal, Spain, France, Belgium, Luxembourg, Poland, Romania and Hungary).
- 5. Purchases of national-brand non-food products will be managed by entities run by Auchan, including Aura Retail Achats Non Alimentaires based in Villeneuve-d'Ascq, and Aura Retail International Non-Food Services located in Luxembourg.
- 6. France's 4th-largest retailer, Coopérative U, wished to withdraw from the Everest European center, but had no official comment.
Agromousquetaires: how Intermarché plans to sharpen its industrial focus - 27/06/2024
- - 4.7 billion euros: industrial sales in 2023
- - 54 plants.
- - 20 logistics sites.
- - 11,000 employees.
- - 40% of Intermarché and Netto private labels are manufactured by Agromousquetaires plants.
- - 15,000 agricultural partners.
- - 200 sailors and 15 ships.
- - 12 supply chains, including beef, processed products, pork, charcuterie, milk, and more.
Coopérative U ready to double its 100% pork sourcing - 24/06/2024
- - Contract duration: 5 years
- - Partnership with the Porc Confiance association to strengthen the supply of 100% French pork.
- - Objective: to double supplies from 3,000 to 7,000 pigs per week by 2025.
- - Cooperatives included in the contract: Eureden, Agrial, and Terrena.
- - 100% of U-brand pork charcuterie (excluding specialties) is of French origin.
Food: Intermarché turns its 56 plants to fresh produce and vegetables - 10/06/2024
- Agromousquetaires is France's fourth or fifth-largest agrifood group, focusing on beef and pork with its slaughterhouses.
- 56 plants and sales of 4.7 billion euros, up 7% year-on-year,
- The group owns the last French diaper factory.
- The industrial division produces 75% for Intermarché's own brands (Monique Ranou charcuterie, Jean Rozé meat, Pâturages dairy products, etc.).
- The fishing fleet, the largest in France with 15 boats
How Intermarché intends to achieve a 20% market share - 16/05/2024
- - Reopening of 35 supermarkets under the Intermarché or Netto banners
- - Number of supermarkets and hypermarkets acquired from Casino in the southeast: 65 supermarkets, 10 hypermarkets
- - Number of supermarkets and hypermarkets acquired from Casino in Rhône-Alpes: 56 supermarkets, 4 hypermarkets
- - Current Intermarché market share in 2023: 16.7
- - Intermarché short-term target market share: 18.5
- - Intermarché's medium-term target market share: around 20%
- - Total number of outlets to be transformed: 294, comprising 257 supermarkets and 37 hypermarkets
- - Number of integrated ex-Casino employees: 10,000
Thierry Cotillard (Les Mousquetaires): "We want to become invulnerable" - 29/02/2024
- - 300 integrated Casino stores and 10,000 employees
- - Group sales of €52.9 billion in 2023 (including fuel), up 7.8%
- - Group sales of €39.9 billion in 2023 (excluding fuels), up 10%
- - Intermarché sales of €28.8 bn (excluding fuels), up 8.8%
- - Netto sales of €1.6 billion (excluding fuels), up 15.7%
- - Agromousquetaires sales up 7% to €4.7 billion
- - Sales of €3.4 bn for the DIY division (Bricomarché, Bricorama, Brico Cash, Tridôme, Bricoprivé.com and Racetools), stable
- - Sales of €359m for mobility banners (Roady, Rapid Pare-Brise), up 4.3% (including fuel)
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the hard discount market | France
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