The market for local products - France (2024)

1.2 The French market for local produce

It's difficult to define the precise scope of "produits du terroir", but here we'll be focusing mainly on label products, and in particular SIQO (***). Indeed, these labels are intrinsically linked to characteristics close to what is meant by "terroir": origin, quality, traditional recipe or know-how.

In ****, there were *,*** products under SIQO in France, with total sales of **.** billion euros, including **.* billion euros for wines and eaux-de-vie.

Sales of label products France, ****, in billions of euros Source: ****

In ****, label products in France generated significant sales figures, underlining the economic importance and consumer confidence in these quality labels. Appellations d'origine, including AOP and AOC, dominated the market with sales of **.** billion euros, reflecting the strong valuation of products closely linked to their terroir of origin and specific know-how.

2.1 French interest in local products

Proportion of French people eating local produce France, ****, %, % Source: ****

The graph on the proportion of French people consuming local produce in **** shows a very strong endorsement of this type of product, with **% of respondents claiming to consume it. This extremely high rate testifies to the deep-rootedness of local products in French consumer habits, reflecting a significant cultural attachment to the quality, authenticity and local origin of food.

French people's agreement with various statements about local produce France, ****, % (***) Source : OpinionWay The graph showing French people's support for various statements concerning local produce in **** reveals overwhelming support for the economic and social aspects of this consumption. A large majority of respondents (***) believe that it iscrucial for France to strengthen its ability to produce food on its own territory. This reflects a national concern for food sovereignty and a desire to guarantee independence in food production, an issue of economic and social security. What's more, **% of French people see buying local produce as an effective way of supporting the local economy, underlining the importance of stimulating regional economies and supporting local farmers and producers. This opinion reflects a collective awareness of the positive economic impact of local consumption on the sustainability of jobs and ...

2.2 The importance of "Made in France" demand

Distribution of French people according to their consumption habits for Made in France products France, ****, % of total Source: ****

**% of consumers say they buy products made in France, reflecting a marked trend towards supporting the local economy and a preference for domestically-made products. This predominance reflects a growing awareness of the economic, environmental and quality benefits associated with Made in France products.

French people's desire to consume more Made In France products France, ****, % of total Source : OpinionWay **% of respondents expressed a desire to increase their consumption of products made in France. This trend reflects consumers' growing commitment to national products. The **% minority who do not share this desire could be influenced by factors such as concerns about the cost of local products, or a perceived limitation in terms of choice. Most purchased Made In France product categories France, ****, % of total Source : OpinionWay The chart on the Made in France product categories most purchased in **** reveals a clear consumer preference for food products, which largely dominate with **% of responses. This predominance suggests that consumers strongly associate quality and trust with French food products, thus favoring local choices for their dietary needs. The hygiene and cosmetics and clothing categories follow, with **% and **% of ...

2.3 An increase in demand for local products to the detriment of organic products

Declining demand for organic products:

As explained above, inflation has had an impact on French consumer habits, with a decline in the consumption of certain products and a move downmarket in the range of products purchased. These changes in consumer habits have had an impact on sales of organic products.

According to the **** barometer of organic products in France, drawn up by Agence bio, **% of French people said they had eaten organic food at least once a month over the past ** months. This is **% less than in ****. The proportion of people who have not consumed organic food in the year has almost doubled since ****, now reaching **% in ****. [***]

Sales of organic products in supermarkets France, ****-****, in billions of euros Source: ****

Sales of organic products grew strongly between **** and ****, increasing by *.** billion euros in * years. Then, from **** onwards, sales declined, continuing to fall in ****.

Evolution of total FMCG FLS sales by volume France, ****-****, in % Source : LSA With inflation, it is interesting to look at sales trends in volume and not just in value, to avoid an analysis biased by price increases over **** and ****. Sales volumes are down sharply over all periods compared with the same period the previous year. The trend ...

2.4 Confinement has changed French consumer habits

Changes in eating habits during confinement France, ****, %, %, %, %, %, %, %, %, %, %, %, %

The graph highlights changes in French eating habits during periods of confinement in ****. A significant trend to highlight is the growing preference for local products and short distribution channels, with **% of respondents indicating this intention. This increase in demand for local products and short distribution channels is part of a wider context of revaluation of local products and the local economy.

Change in "prefer local products and short distribution channels" behavior France, ****, % (***)

A significant proportion of respondents, **%, say they have kept this habit unchanged, indicating a persistence of this trend in purchasing habits. This reflects a continuing interest in local products and short distribution channels, underlining their importance in consumers' food choices.

However, it is also notable that **% of respondents have partially retained this habit, suggesting a degree of flexibility in purchasing behavior, perhaps due to external constraints such as product availability or budgetary constraints.

Only *% of respondents indicated that they had not retained this habit, underlining the resilience and continued relevance of this preference for local products and short distribution channels in the French food landscape. This trend reflects a growing desire to support the local economy, promote environmental sustainability and guarantee the ...

3.1 Geographical structure of local products

Geographical breakdown of AOCs/PDOs by department France, ****, in number of AOCs/AOPs

Côte-d' Or stands out with the highest number of AOC/AOPs(***).

These departments are renowned for their renowned wine production.

FMCG (***) sales correspond to total sales of everyday consumer goods such as food, beverages, personal care and household products. FMCG sales therefore exclude sales of textiles, DIY and gardening products, automotive products, etc.

Brittany stands out with the highest share, followed by Grand Est and Bourgogne-Franche-Comté. These regions benefit from a strong presence of local brands in the FMCG sector, reflecting consumers' marked preference for local products and short distribution channels.

Île-de-France 's relatively low share of this market can be explained by its urban density and metropolitan character, with local products sometimes less visible in supermarkets.

This analysis underlines the growing importance of local brands in the supermarket landscape, highlighting the central role of the regions in promoting local products and developing short distribution channels.

It is interesting to note that the results concerning the number of AOCs/DOPs per département and the weight of local brands in FMCG sales differ.

Indeed, although certain regions stand out for their high number of AOCs/DOPs, ...

3.2 A market based mainly on certain sectors

Wines, spirits and ciders

Wines, in a dominant position with **% of SIQO sales, saw their marketed production increase by *% involume and **% in value in ****. This growth comes after a difficult year in ****, when sanitary restrictions curbed exports and local consumption. The end of the health crisis has stimulated a significant recovery in alcoholic beverage exports, notably Cognac, whose volume has risen by *% and sales by **%.

Breakdown of volumes of spirit drinks marketed under SIQO by category France, ****, % of total

Analysis of volumes of spirit drinks marketed under official quality and origin labels (***) in **** in France shows a marked predominance of wine and marc eaux-de-vie, which account for over three-quarters of the total, followed by rum with a significant but much smaller share. Other beverage categories, such as crème de cassis, whisky, liqueurs and fruit brandies, occupy marginal shares. This distribution reflects a notable concentration of SIQO production and sales in a few key categories, suggesting a specialization of producers in traditional and established segments.

Meats

The poultry sector saw a continued decline in ****, with an *% drop in volumes marketed under SIQO (***), although the value of these sales increased by *%, reflecting a possible rise in prices.

Share of SIQO meats in ...

3.3 Distribution of local products concentrated in supermarkets

Places to buy PDO cheeses in **** France, ****, % of total

In ****, the places where PDO cheeses are bought in France show a clear preference for hypermarkets and supermarkets, which account for **% of sales, indicating strong demand for these products in mass distribution channels.

Own-brand stores and specialist out lets also make a significant contribution, each accounting for **% of purchases, underlining the importance of specialist outlets and alternative distribution channels for the acquisition of quality products.

Convenience stores and Internet sales, representing *% and *% respectively , although less dominant, show a diversification of distribution channels, probably motivated by a search for convenience and easier access to local products.

This breakdown of purchasing outlets highlights the importance of supermarkets for the purchase of PDO cheeses, while underlining the complementary role of specialist channels and online sales in access to certified quality products.

Weight of local brands in FLS FMCG sales by type of distribution channel France, ****, % of sales

Supermarkets have the highest share of local brands at *.*%, underlining their crucial role in promoting and selling these products. They are followed by convenience stores with *.*%, which, despite their smaller size, play a significant role in making local products accessible to consumers. Hypermarkets, although dominant in retail sales, ...

4.1 The different official signs of quality and origin (SIQO)

Labels of origin and quality, as previously mentioned, are one of the key drivers of consumer confidence in food products. In France, the SIQO nomenclature is managed by INAO (***). [***]

Today, there are * distinct labels:

Source: ****

Products bearing quality and origin labels account for a significant proportion of both marketed alcoholic beverages and marketed food production.

Breakdown of marketed alcoholic beverages France, ****, %

Analysis of the breakdown of alcoholic beverages marketed in France in ****, based on label type, reveals a clear predominance of beverages certified by an Appellation d'Origine Contrôlée (***), which account for **. *% of the market.

This large share underlines the importance and preference of French consumers for products that guarantee a strong link with their terroir of origin and specific know-how, criteria often associated with superior quality and reassuring traceability.

Breakdown of marketed food production France, ****, % of total The breakdown of food production marketed in France in **** shows a clear predominance of products without specific quality certification, accounting for **% of the total. This high percentage underlines the fact that the majority of food products available on the French market are not associated with quality labelssuch as Appellations d'Origine Contrôlée (***). Organic farming products, with a share of *.*%, are the ...

4.2 Disparity in the product categories available in local products

Share of SIQO products by category France, ****, % (***) Source: ****

The breakdown of SIQO products by category in France in **** reveals significant trends in the promotion of local products.

Wines stand out with a **% share of products under SIQO, highlighting the importance of the winegrowing tradition and the renown of French winegrowing terroirs. Olives are another product with a strong SIQO label.

Ciders, spirits, olive oils and fish and aquaculture products also show a notable presence under SIQO, underlining the importance attached to quality and authenticity in these sectors.

Fruit and vegetables, on the other hand, although representing a significant proportion of the food supply, have a relatively low proportion of products under SIQO, suggesting potential opportunities for adding value to local products in this area.

All in all, this breakdown highlights the diversity of SIQO products in France, reflecting both the richness of its gastronomic heritage and the persistent challenges of valorizing terroir products in certain specific sectors.

Weight of local brands in main department sales France, ****, %

The breakdown of the weight of local brands in the sales (***), which probably reflects consumers' preference for local, traditional, quality dairy products.

The charcuterie, cheese and savoury departments follow closely behind, underlining the importance of ...

4.3 Labelled products are more highly valued than the "classic" market

Because their production requires compliance with very strict specifications guaranteeing quality and confidence, the average price of labelled products is higher than that of the market. Data collected on the average price of cheese, butter and cream in France between **** and **** confirms this trend.

PDO cheeses systematically command higher prices than non-labelled cheeses, with a notable difference that has been maintained over the years (***)

Similarly, PDO butter and PDO cream have higher average prices than their non-labelled counterparts.

This price premium can be attributed to a number of factors, including the more demanding production process, rigorous quality controls and the reputation of the PDO label, which adds value to the products. These results suggest that consumers are willing to pay a premium for PDO-certified products, demonstrating their commitment to quality, authenticity and tradition.

Average cheese price France, ****-****, €/kg source : CNAOL

Average butter price France, ****-****, €/kg source : CNAOL Average cream price France, ****-****, €/kg source : CNAOL

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5.1 The main principles of food hygiene in France

All foodstuffs are subject to the general provisions of the French Consumer Code in terms of conformity (***).

Several regulations establish the legislative basis for food hygiene in France:

Regulation n°***/**** on the general principles and requirements of food law[***] Regulation n°***/**** on the hygiene of foodstuffs[***] Regulation n°***/**** laying down specific rules for animal foodstuffs[***] The decree of December **, **** on health rules applicable to the trade, retail, storage and transport of products of animal origin and foodstuffs containing them.[***]

Source: ****

Food hygiene is also regulated at European level by the "Hygiene Package", a set of measures and regulations applying in all member states. This legislation came into force on January*, ****, and is derived from the White Paper on Food Safety published in **** following several health crises.

The Hygiene Package comprises six main texts, including * mentioned above: EC regulation no. ***/****, EC regulation no. ***/**** and EC regulation no. ***/****.

In addition to these three texts

eC regulation n°***/**** (***) eC regulation n°***/**** (***) eC regulation n°***/**** (***)

5.2 The impact of the EGAlim law

The EGAlim law, or Loi pour l'équilibre des relations commerciales dans le secteur agricole et une alimentation saine et durable, passed on October *, **** and promulgated on November*, ****.

The objectives of this law are as follows:

Relaunch the creation of value in agriculture and agri-food and ensure its proper distribution Enable farmers to make a living from their work Support the transformation of production models to meet consumer needs and expectations Promote consumer choices in favor of healthy, safe and sustainable food[***]

Food quality and safety are thus at the heart of this new law. The following is a non-exhaustive list of measures relating specifically to food safety:

Developing quality labels and organic farming Implementing effective surveillance to identify and assess risks (***) Strengthen government control resources and powers Strengthen European coordination in the fight against food fraud[***]

The Égalim I law, adopted in ****, aimed to promote a balance in commercial relations in the agricultural and food sector while guaranteeing healthy, sustainable food accessible to all. In ****, it was supplemented by the Égalim II law, which focused on protecting farmers' remuneration. The Égalim III law, adopted in ****, pursued this objective by strengthening the balance of commercial relations between suppliers and distributors. A ...

5.3 AOC and PDO regulations

Appellation d'origine protégée (***) are labels guaranteeing the quality and authenticity of products linked to their place of production and specific know-how. The AOC was introduced in **** to protect wine and eaux-de-vie, and has since been extended to other agricultural, food, forestry and marine products.

To obtain an AOC, all stages of production must be carried out in a defined geographical area according to recognized know-how. A defense and management organization proposes a product to the Institut national de l'origine et de la qualité (***), which validates or refuses recognition. The PDO, granted by the European Commission, is the European equivalent of the AOC and, since ****, its symbol must appear on the labels of the products concerned.

Products bearing the AOC/AOP label comply with strict specifications and are subject to independent controls approved by the INAO. The central concept of these labels is the notion of terroir, a geographical area whose specific features give products their originality, stemming from a collective production know-how.

The regulations governing these labels are set out inthe French Code rural et de la Pêche maritime (***) n°****/**** concerning wine products.

Source: ****

6.1 Segmentation

• Delpeyrat
• Maïsadour
• St Sever
• LDC Groupe
• Comtesse du Barry
• Ducs de Gascogne (Qua Terra)
• La Cloche à fromage
• Inter Caves
• Vins sur 20
• Savencia Fromage & Dairy groupe
• Compagnie du Bocage
• Tripoux d'Auvergne - Uniplaneze
• La Ferme de chez nous
• Gozoki groupe