The meat market - France

1.2 The world meat market

The global meat market was estimated to be worth USD ***.* billion in **** and is expected to grow at a CAGR of +*% over the period ****-****.

Global Meat Market Size World, ****-*****, in billion dollars Source: ****

Global meat production is estimated at ***.* MTEC.

World meat production by region World, ****, in million tons of carcass equivalent Source: ****

China is the world's largest meat producer with production in **** estimated at ** million tons of carcass equivalent. China's share of world production is therefore **.*%. The second largest producer is then the European Union with **.* million tons of carcass equivalent, a share of **.*% of world production.

Meat consumption by type of meat World, ****-***** Source: ****

Meat price indices World, ****-****, ****-****=*** Source: ****

1.3 Overall presentation of the French meat market

To make the graph below, we used the Insee data for NAF code **.* - "Processing and preserving of meat and preparation of meat products". Unfortunately, the total turnover of this code stopped in ****, but to find the size, we therefore multiplied the **** turnover by the average annual turnover indices.

For example, for the market size in ****, we did: **.* **.*** = **.* approximately.

Overall the turnover has been increasing since ****, since it was estimated that year at **.* billion euros, while in **** it was estimated at **.* billion.

Market size of the meat processing and preservation and meat product preparation industry France, ****-****, in billion euros Source: ****

Average annual index of sales for NAF code **.* France, ****-****, base *** in **** Source: ****

The overall household budget for meat products France, ****-****, in billions of euros Source: ****

it can be seen that the overall budget of the French for meat products increased between **** and ****, as it rose from **.* billion euros to **.* billion euros. This turnover does not take into account the industrial part, it is only positioned on the consumer level unlike the turnover at the head of the part which focuses on the meat industry.

Purchase structure of meat product volumes purchased by households France, ****, as a % Source: ****

overall, ...

1.4 France's foreign trade: A trade deficit

in this part, we used four Uncomtrade codes to be able to make these graphs, so we have the codes:

****, beef, fresh, frozen ****, pork, fresh, chilled or frozen ****, sheep or goat meat, fresh, chilled or frozen ****, poultry meat and poultry offal, fresh, chilled or frozen

French meat exports to foreign countries World, ****-****, in millions of dollars Source: ****

Overall, during the ****-**** period, French meat exports remained fairly stable. The big difference is within the categories since if in ****, beef was the one that was exported the most abroad with an estimated export value of about $*.* billion, in **** it was estimated at $*.* billion. conversely, pork is the category of meat that has grown the most, as the value of pork exports has increased from about $*.* billion in **** to $*.* billion in ****.

We also note that in ****, beef and poultry meat was mainly exported to European Union countries, while pork was much more "globalized" since it was partly exported to China and Japan.

The top * French beef exports to foreign countries, by value France, ****, % Source: ****

Top * French pork exports to foreign countries, by value France, ****, % Source: ****

Top * French poultry meat exports to foreign countries, by value France, ****, % Source: ****

French meat imports from ...

1.5 The impact of covid-19 on the meat market

The volume of meat purchased increases with the pandemic...

The health crisis, which occurred in ****, has changed the consumption habits of the French, both in terms of quantities and the means of distribution used. In a so-called "normal" year (***), the volumes of meats purchased experienced a more limited increase as the increase is estimated to be +*% for November compared to **** and +**% for December.

Just like meat purchases (***)

like the volumes of meat purchased, the purchases of meat have increased well with the first containment (***), since the increase in purchases is estimated at values between +**% and +**% compared to the same period in ****. If in the second containment, purchases continue to increase, they are still lower than those seen in the first containment.

Out-of-home meat consumption drops during the pandemic due to confinements and forced closures.

Revenues of fast food restaurants (***) France, February ****- February **** (***) Source: ****

The fast food sector has been more resilient thanks to take-out and delivery, and has thus managed to post a smaller loss of revenue, of around -**%. Fast food outlets have more favorable basic business models for take-out and delivery - for most establishments the majority of sales are not made with table service. Three segments fared ...

2.1 French meat consumption

meat consumption

evolution and individual consumption of meat France, ****-****, in kgEC and in % Source: ****

Breakdown of French individual meat consumption France, ****/****/****, in % Source: ****

the average meat consumer basket

In the report published by FranceAgriMer in ****, French meat consumption was estimated at **.* billion euros in ****, up sharply from ****, when it was estimated at **.* billion euros. Purchases of finished products by metropolitan households were estimated at *.* million in ****, an increase of *.*% compared to ****. The average purchase price was estimated at €**.*/kg. The quantities of meat purchased in **** increased, for the first time in * years. The meats with the largest increase in quantities purchased in **** were poultry meat and butcher's meat, with an increase of *.* and *.*%, respectively, compared to ****. These increases can be largely explained by the fact that the French consumed more meat at home rather than in restaurants, fast food ...

2.2 Poultry meat consumption

Types of chickens

Distribution of the type of chicken quality France, ****, in % Source: ****

it can be seen that three quarters of the chicken consumed in France is of standard quality and that we only have a quarter of high-end chicken that is consumed. This can be partly explained by the fact that the French find high quality chicken a bit expensive, compared to standard quality chickens. [***]

Poultry market demand segmentation

In France over the first * months of ****, poultry consumption increased by **% in supermarkets, with an increase for chicken of **.*%. However, the consumption of poultry meat outside the home has fallen, due to the two confinements and the successive curfews. [***]

Poultry consumption is growing year after year, since over ** years, between **** and ****, the average annual growth rate of poultry consumption is *.*%. [***].

Demand segmentation of the chicken market France, ****-*****, in % Source: ****

Finally, the demand for poultry is highly segmented, particularly the chicken sub-segment. We have cut chicken, whole chicken and finally processed chicken. The demand for whole chickens has dropped very significantly between **** and ****, since if the share of demand for whole chickens was **% in ****, in **** it decreased to **% while in **** the demand for this product reaches only **%. On the other hand, ...

2.3 Beef consumption

Focus on beef consumption

evolution of beef consumption France, ****-****, in thousands of tons Source: ****

as with pork, the volume of beef was initially down between **** and ****, but in **** it started to rise again, with for example +**.* thousand tons of frozen ground beef purchased compared to the previous year.

Profile of beef consumers

Distribution of beef consumers by age France, ****, in % Source: ****

In ****, the largest consumers of beef are people aged ** and ** years old with **.*%, followed by people over ** with **.*%.

Distribution of beef consumers according to income France, ****, in % Source: ****

Distribution of beef consumers according to their family situation France, ****, in % Source: ****

It can be seen that middle-aged couples and senior couples are the largest consumers of beef when comparing the data in the graph with the data in the table. In parallel, the smallest consumers are middle-aged singles and senior singles.

2.4 Pork consumption

Focus on the evolution of pork demand

Evolution of pork consumption

It is noted that between **** and ****, all types of pork meats had decreased in terms of volume purchased (***), which was already highlighted in Section *.*.

The profile of pork consumers

Distribution of fresh pork consumers by age France, ****, in % Source: ****

When comparing the graphs of the three categories, poultry and rabbit meat, beef and pork, it can be seen that overall, adults under ** years of age consume the least amount of meat of any category in ****. People aged ** to ** prefer poultry and rabbit meat (***).

Distribution of fresh pork consumers according to income France, ****, in % Source: ****

It is interesting to note that the main buyers of pork are households in the lower middle income class (***). But when we compare with the distribution of the French population by income class in the table below, we notice that the lower middle income class households are also the main French households. This suggests that income level has little influence on pork purchases. Only the wealthy class seems to consume a little less pork. Pork remains a meat that is accessible to all French people and this probably explains why it is the most popular meat ...

2.5 Organic meat, a new trend?

Organic poultry meat

In ****, **% of French people said they eat meat and among them **% eat organic meat, according to anIFOP.

Distribution of the number of consumers of organic meat France, ****, in % Source: ****

This desire to consume organic meat according to the respondents is the result of several factors.

Breakdown of reasons why the French consume organic food France, ****, in % Source: ****

thus, the French believe that organic products are of much better quality, especially in terms of health and taste. The environmental issue is nowadays at the center of the news. According to the French, consuming products with no pesticides is a way to reduce our pollution, which could eventually benefit the consumption of organic poultry in France.

This is why, in ****, France is the first country to produce free-range poultry with **% of its chickens. Over the period ****-****, the production of organic chicken has doubled, however, organic chicken represents only *% of production.

At the same time, chickens raised under Product Conformity Certification have increased by **%.[***]

As for red label certified chickens, they have experienced a **% increase that is noticeable in **** since no less than **% of French chickens are red label. In ****, this rise in the quality of French poultry continued as ...

2.6 Other trends

The development of prepared meals correlates with the decrease in time spent cooking

One of the main growth vectors for the meat market in France is that of prepared/compounded meals, which is linked to the higher growth and value added rates of the meat market in France.

This can be seen in the development of the offer by food manufacturers of prepared dishes and types of processed meat such as sandwiches, burgers, steakss, nuggets, cordon-bleu, sausages... The time spent cooking has decreased by a quarter between the ****s and today (***).

These changes lead to a substitution of the direct demand for meat by the consumption of such products.

A decrease in meat consumption by the French partly due to awareness movements

Actions are carried out by the government and by associations to encourage the French to reduce their meat consumption. These have been motivated by elements such as the awareness of the carcinogenic character of a too high consumption of meat (***) and by revelations concerning abusive or unregulated breeding conditions on the part of certain animal breeders...

The rise and development of new consumer movements impact the demand for meat

New movements advocating the reduction or even the abandonment of ...

3.1 Structure of the meat market

An overview of the market

RHD : Catering industry

GMS: Large and medium-sized supermarkets

The meat market in France is driven by more than *,*** companies employing ***,*** people in ****.

This market is mainly occupied by large companies (***).

Distribution of turnover and added value of companies in the meat market France, ****, in % Source: ****

The value added rate of the meat industry is lower than that of the food industry in general: it was **.*% compared to **.*% for the rest of the food industry in ****. In the meat industry market, only the industrial preparation of meat products (***).

Comparison of the key figures for the food industry and the meat industry

3.2 The meat industry in France

The National Livestock Confederation details some characteristics of meat production in France.

It is organized according to two herds:

The "dairy herd", it represents **% of the total herd and is composed of animals originating from and destined for milk production. **% of the animals are selected for the renewal of the herd. **% of the calves marketed for their meat are for slaughter The "specialized herd", also called "suckling herd", represents **% of the total herd and is composed of animals raised specifically for their meat. Some producers have specialized in one of the stages of growth of the animals (***). The products obtained are calves, heifers and cull cows, and are intended for consumption. The breeds obtained are diverse: Charolais, Limousin, Blonde d'aquitaine..

Figures from Interbev, FranceAgrimer and Ifip Edition relayed by Lsa Consoand the CNEshow that France occupies a place of first order in the European meat market

France has the largest cattle herd in Europe with more than ** million head, it is the third largest pig producer in Europe with ** million head, France produces *.* million tons of beef each year, it is positioned as the eighth largest producer in the world and number one in Europe ahead of Germany, it exported ***,*** tons ...

3.3 The meat industry in France

In ****, there were *,*** companies in metropolitan France, including Corsica, with a total workforce of **,*** employees.

Distribution of the number of meat processing and preservation companiesFrance, ****, in number of units

Source: ****

The above map is based on Accos data for NAF codes **.**Z - "Processing and preserving of butcher's meat"-, **.**Z - "Processing and preserving of poultry meat"-, **.**A - "Industrial preparation of meat products"- and **.**B - "Delicatessen"-. To create the above map, we have summed the data by region for these four NAF codes. Thus, the region that comes out on top with the largest number of companies is the New Aquitaine region with *** in ****. It is followed by the Occitania region, which counted *** companies. Finally, the Auvergne-Rhône-Alpesregion is on the third step of the podium since it had, in ****, *** companies.

It is also worth noting the importance of the regions of Brittany and Centre-Val de Loire, which do not have the largest number of companies, but they are those with the largest number of employees, with **,*** and **,*** respectively. Thus, the share of Breton employees in the total workforce was **.*% and that of employees in the Pays de la Loire was **.*%, i.e. a total ...

3.4 Meat distribution in France

Meat distribution channels

Distribution of meat distribution channels (***) in terms of quantities purchased France, ****, as a % Source: ****

it can be seen that hypermarkets and supermarkets dominate the distribution channels since they represent **.*% of the meat distribution shares in terms of quantities purchased.

Pork meat

According to FranceAgriMer, the marketing of fresh meat represents **% of the tonnage and is distributed to **% by supermarkets, **% by artisans and **% by restaurants. Processed products (***), account for **% of tonnage and are distributed to **% in supermarkets, **% by artisans and **% by restaurants.

According to Le Porc, there are more than **,*** butcher shops in France and *,*** artisanal charcuterie shops, while supermarkets and hypermarkets have more than **,*** outlets in France where pork is sold in self-service or by the slice, in ****.

Distributors offer producers the guarantee of a sustainable price in favor of the farmers and participate in the upmarket development of the sector: for example, the sector has seen the development of pork raised without antibiotics thanks to distributor/producer partnerships. While Cooperl Arc Atlantique was already offering it under the Brocéliande brand, Carrefour is now marketing it through a partnership agreement with the Fipso cooperative and several dozen farmers in southwestern France, according to LSA Conso.

In short, ...

4.1 The main meat price indices in France

Average annual price index for meat consumption France, ****-****, base *** in **** Source: ****

To make this graph, we used the Coicop code **.*.* - "Meat" -. We notice that prices have increased over the period ****-****, since in **** the index was *** while in **** it was estimated at ***.**, a price increase of *.**%. The average price for all types of meat (***) taking into account all distribution channels was **.* € / kg in ****. [***]

Average annual index of meat production prices for the French market France, ****-****, base *** in **** Source: ****

in parallel with the rise in consumer meat prices, the output prices of the meat industry and meat products for the French market have increased overall to reach an index of ***.* in ****. conversely, the French meat industry's output prices for foreign markets fell between **** and ****, as the price index was estimated at **.* in **** compared to *** in ****. starting in ****, the price index for external markets recovered a bit, rising to **.* in **** and reached ***.* in ****.

4.2 The main price indices of the poultry meat market in France

Source: ****

There is a clear price difference between organic, free-range and standard chickens. These price differences are even greater when compared on the basis of retail prices. This can be explained by several factors. For organic poultry, the price of organic raw materials (***) is more expensive than standard raw materials. Poultry are also raised in the open air, which requires more space than red label poultry. This lack of exploitable surface combined with the increase in the price of agricultural raw materials seems to explain the price differences that can exist between the three types of poultry: standard, red label, organic.

4.3 The main price indices of the pork market in France

The change in the average price of fresh butchered pork from **** to **** is reported in the graph below.

Average price of pork in fresh butchery France, ****-****, in €/kg Source: ****

we note that the price in fresh butchery has changed little since ****. Nevertheless, we note a slight increase in ****. This meat remains cheaper than ruminant meat, but its purchase price is increasing, reaching *.** € / kg in ****, it achieves a growth of *.*% compared to ****. This increase is mainly due to Asian demand and the consequences of African swine fever, given that French household consumption is down.

**** Average price (***) evolution (***) Fresh pork (***) *,** *,* of which loins *,** *,* of which other pieces *,** *,* Fresh pork offal *,** -*,* Fresh pork sausages* (***) *,** *,* Sausage meat *,** *,* Pork half salt pieces *,** *,* *excluding merguez

The graph below shows the average prices in **** by distribution channel

Average price of fresh pork by distribution channel France, ****, in €/kg Source: ****

Prices in specialized stores and markets are therefore **% higher than those in supermarkets. Nevertheless, they benefit from an image of quality and freshness that appeals to consumers, who are often willing to pay more for better quality meat.

4.4 The main price indices of the beef market in France

Average price of beef by distribution channel France, ****, in Euros Source: ****

it can be seen that the prices of markets and specialized stores are between ** and **% higher than the prices offered in hypermarkets.

Table of wholesale prices, in € excluding tax per kg, on **/**/****MIN de Rungis: meat cuts

Product Average price Variation compared to the week of **/**/**** Cow beef (***) semi-dressed vacuum-packed E.U *,** +*,** Cow beef (***) ready to cut, vacuum-packed E.U *,** -*,** Cow beef (***) ready to cut up Vacuum packed *.** +*,** Cow beef (***) ready to cut up vacuum-packed E.U *,** + *,** Semi-dressed cow beef (***) Vacuum-packed E.U *,** = Semi-dressed cow beef (***) vacuum-packed E.U *,** -*,** Cow beef (***) semi-prepared vacuum-packed E.U **,** -*,** Cow beef (***) semi-prepared EU vacuum-packed **,** +*,** Semi-wrapped beef (***) EU vacuum-packed *,** +*,**

Source: ****

5.1 The main regulatory standards governing the meat market in France

Non-exhaustive list.

The " Hygiene Package " This is a set of European hygiene standards to ensure a minimum level of sanitary safety on a European scale and is imposed on all actors in the food chain. They include mainly the following regulations Regulation (***) No ***/****, Regulation (***) n°***/****, Regulation (***) n°***/****, Regulation (***) n°***/****, Regulation (***) n°***/****, Regulation (***) n°***/**** The european decree ***/**** concerns the traceability of meat and was established in order to be able to find their entire path, The decree of April *, **** concerning the labeling of beef, must include the country of birth of the animal, the country of rearing and the country of slaughter, the information on the food chain must also be available at any time of the routing of the meat because these health data can be verified by veterinary services, There are French and European standards that allow meat to be awarded labels, a guarantee of quality and compliance with regulations. Among the most popular labels, we have AOC, AOP, IGP, Viande Bovine Française, Label Rouge, AFNOR.. Sanitary approvals must be obtained, in particular for industrialists and butchers delivering large quantities of meat in order to ensure that the meat is transported in good conditions (***), The CAP Common Agricultural Policyset ...

5.2 Some specifications concerning the regulation of the meat market

The Egalim law

The Egalim law aims to restore the balance of commercial relations between producers and large-scale distribution, but also to make healthy and sustainable food accessible to all consumers. This law has been enacted since October ****.

The impact

An article in Le Monde on June *, **** details the impact of the Egalim law on relations between the various market players. In particular, it reports that the price paid to pig farmers in **** was down sharply compared to ****. According to the article if the effects of the Egalim law are not felt by farmers, it is due to the fact that production costs have also increased over the year ****.

According toUFC Que Choisir the law is a "failure" for consumers. The reduction of the margins of the industry and distribution did not take place. On the contrary, they have still increased more strongly than agricultural prices, resulting in "unjustified additional inflation for consumers".

Nevertheless, it seems still early to draw conclusions from a market that publishes its indicators a year late (***) and the particular context of the current crises prevents a lucid evaluation of the impact of these new measures on the market.

Animal welfare, a government priority

in ****, the European ...

6.1 The main companies of the meat market in France

• Cooperl Arc Atlantique
• Bigard groupe
• Maïsadour
• LDC Groupe
• Bouchers Services Groupe Codéviande
• Interbev
• Terrena (Coopérative)
• Charal
• Saglam France
• Solina
• Socopa (Bigard Groupe)
• Sicarev
• Kermené (E Leclerc)
• Guasch Viandes
• Boucheries Nivernaises
• Novoviande