The meat substitute market - France

1.2 A growing global market, mainly in Western countries

Size of the world market for meat alternatives World, ****-*****, in billions of euros Source: ****

The world market for vegetable meat is expected to grow at a sustained rate of *% per year until ****, increasing the value of the market from €*.* billion to €*.* billion.

A study conducted by the British bank Barclays has a much more positive outlook stating that global sales of vegetable alternatives to meat are expected to reach $*** billion in ten years' time. That is **% of the total meat market, which is currently valued at *,*** billion. [***]. These important differences between studies stem mainly from the interpretation of "alternatives to meat". Some analyses will only consider substitutes that adopt the shape and/or taste of animal meat. Others will include all products labelled "vegetarian", and some will include products labelled "vegan". This makes it difficult to estimate the market based on one definition.

Countries with the highest proportion of vegan product launches World, July ****- June ****, in % Source: ****

Looking at the different national markets, Germany and the United States clearly stand out from the other countries with **% and **% of all food products launched between July **** and June **** being vegan, respectively. France ranks fourth with *% of product launches.

These same markets ...

1.3 A national market that has been growing steadily for several years now

The vegetable meat market is included in the category "Other processing and preserving of fruit and vegetables" (***) of the INSEE nomenclature.

Size of the vegetable processing and preservation market France, ****-****, in billions of euros Source: ****

The processing and preservation market grew by *.*% between **** and **** to reach a value of *.* billion euros.

A more precise analysis of the French market for vegetable meat in supermarkets shows that it will peak at ** million euros in **** (***). The penetration rate of vegetable products at the end of **** reaches **%, which leaves a significant growth potential for the category. [***]

  Evolution of the number of products containing vegetable proteins France, ****-****, in units Source: ****

The number of products containing vegetable proteins has increased **-fold in ** years. This extraordinary increase can be explained by the consumer's desire to eat healthier and more varied foods, and therefore no longer rely solely on animal proteins.

However, this interest is not uniform across all segments. Indeed, in ****, while the "pavers-squares" category jumped by **%, the "steaks-burgers" category fell by *%. Meat substitutes is therefore a dynamic market overall, but not all categories benefit to the same extent. [***]

Source: ****

The proportion of vegetarians and vegans remains rather low in France, yet the hexagon ...

2.1 Demand for traditional meats structurally declining

Meat consumption per capita in France contracted by *% in ****. The main segments contributing to this decline were fresh and frozen meat (***).

Meat consumption per capita France, ****-****, in g/day Source: ****

The graph of meat consumption per capita in carcass equivalent shows a gradual decline since ****. While this decline in consumption is slow, it is nevertheless noticeable and is expected to continue over the long term.

A closer look at the different segments shows that almost all sectors (***) are in decline with the notable exception of chicken meat and, to a lesser extent, duck meat. The French, for example, have gone from an annual consumption of *.* kg carcase equivalent of sheep meat to a consumption of less than * kg. [***]

According to the Research Centre for the Study and Observation of Living Conditions, in ****, **% of French people said they had limited their meat consumption.

2.2 French people increasingly fond of meat alternatives

French consumers have been attracted to vegetable meat for a long time. As early as ****, a study reveals that **% of consumers wanted to reduce their meat consumption. According to the same study, **% of consumers said they are ready to eat hybrid meats (***) and **% of them could turn to products based exclusively on vegetable proteins. This study therefore suggests that half of consumers are potential customers for the vegetable meat market. Seven years later it can be estimated that this proportion has increased further. [***] 

Average annual budget devoted to plants in supermarkets and hypermarkets France, ****-****, in € Source: ****

 Penetration rate of plants in hypermarkets and supermarkets France, ****-****, in % Source: ****

Frequency of purchase in the plant in supermarkets and hypermarkets France, ****-****, in number of annual acts Source: ****

The figures confirm this trend. Vegetable meat is increasingly becoming an essential part of the shelves of large and medium-sized stores. Indicators of average annual budget, penetration rate and purchase frequency are all on the rise. The strongest increase is in the penetration rate, which underlines the desire of retailers to push vegetable references in order to benefit from their strong growth potential.

The evolution of the number of people defining themselves as ...

2.3 Consumer perception of vegetable proteins

The products containing the most proteins according to the French people France, ****, in % Source: ****

The consumer barometer conducted by the GEPV reveals that **% of French people, i.e. *.*% more than in ****, think that vegetable proteins (***) are beneficial for health. At the same time, **% are convinced that they are good for the environment, i.e. **.*% more than in ****.

The main novelty of this barometer is that, for the first time, vegetable proteins are perceived to be "of better quality" than animal proteins from an environmental (***) point of view.

However, this positive image of vegetable proteins is not shared uniformly among the French population. Plant proteins are particularly appreciated by :

Craftsmen / merchants and entrepreneurs (***) Young people aged **-** (***) Residents of Ile de France (***) Women (***)

On the other hand, plant proteins are of less interest to other population groups such as :

Men (***) The inhabitants of the South-West (***) The **-** year olds (***) The workers (***)

2.4 Motivations of vegetarian consumers

Ethical, environmental (***) and health concerns are the main reasons given for choosing a flexitarian or vegetarian diet.

Animal welfare

According to Opinion Way **% of those who say they abstain from meat and fish, choose animal welfare as the first criterion for doing so. In total, **% of French vegetarians consider this criterion as a motivation in their choice to stop eating meat. Rearing and slaughtering conditions are thus regularly denounced, notably by the association L***.

Health

The health argument is the second criterion that encourages the French to become vegetarian. According to the Opinion Way, **% of people who reduce or stop eating meat do so out of concern for their health. This criterion is judged as a motivation by **% of vegetarians.

Indeed, in **** the WHO after reviewing more than *** scientific studies on the links between meat foods and cancer, and the FDA after reviewing more than *** scientific studies on the links between meat foods and cancer, stated that red meat is "probably carcinogenic" and processed meats, such as deli meats, are "carcinogenic to humans". Thus, public recommendations are now moving in the direction of reducing meat consumption.

The environment

The final important criterion for vegetarians to stop eating meat is the environment. ...

3.1 Value chain of the vegetable meat market

The interview given by the French startup "Les Nouveaux Fermiers" to L'Usine Nouvelle is rich in lessons on the organisation of the value chain of the vegetable meat industry. Raw materials are first purchased from a network of French or European producers. The finished product is then produced by an industrial partner who has the production tools for the three main products (***). Finally, the end consumer buys these products by shopping in the brands or consumes them directly in a restaurant.

This value chain organisation is more or less the same regardless of the food company producing the vegetable meat. The only notable difference is that while not all startups in the sector have their own means of production, this is not the case for the large agri-food groups that have in-house production capacity.

3.2 A market shared between specialist brands, industrial players and private labels

Traditional vegetable and meat substitute brands :

The current leaders in the vegetable and meat substitute sector are those who were able to offer similar subsitutes at *st generation (***). These include Triballat-Noyal which owns the Sojasun brand. Another player, the Breton company, started to design soy-based products in ****, starting with milk, and has developed many other products including a wide range of soy-based meat substitutes such as tofu. Sojasun has also been able to innovate on *nd generation with the launch of its vegetable mince for example. Sojasun had a turnover of *** million euros in **** and the brand has become one of the leaders in the vegetable sector with an **% market share. The Céréal brand is also one of the first to have been launched. This pioneering role in the vegetable meat market explains its current success with **% of the vegetable catering market share in ****. [***]

As far as third-generation substitutes are concerned, the main players are Americans, in particular from Californian, with startups disrupting the market inclduing Impossible Foods and Beyond Meat. They are the first to have sought to create vegetable meats with a taste almost identical to that of animal meats. The success of these products is such ...

3.3 The battle for the distribution of vegetarian meat

The vegetarian meat market has a very strong potential and could reach $*** billion worldwide by ****, according to estimates by the British bank Barclays. There is therefore competition both between distribution channels and, above all, between players in the same distribution channel to obtain supplies from the best vegetarian meat producers.

Barclays anticipates the fundamental role of restaurants and fast food chains in the development of the meat substitute market. Impossible Foods, a pioneering Californian startup, has based its success on restaurant distribution. *,*** brands, including Burger King, market the startup's veggie burger. Beyond Meat, its main rival, claims **,*** points of sale in restaurants and has signed a partnership with the Canadian chain Tim Hortons to market its "Beyond Burger". This burger can be found on the menu of the following Parisian restaurants: Vegeta Burgers, Ellis Gourmet Burger, East Side Burgers, Hank and PNY. [***]

Large retailers are closely following the craze for meat substitutes. Indeed, these products are well valued and represent for them an opportunity to regain margins after several years of fierce price wars. For example, the Casino group has developed the Naturalia concept to gain market share in this segment. [***]

3.4 French restaurants are changing in response to new vegetarian and vegan demand

It is estimated that between **** and **** the number of vegetarian restaurants in Paris has increased *.* times to a total of ***. This trend does not only affect table-top restaurants but also fast food restaurants, with for example McDonald's launching its vegetarian burger, the "Grand Veggie" in ****, or university restaurants with the development of vegetarian meals since December ****. [***]

The boom in vegetarian or vegan catering is due to a demand from French consumers for more flexibility in their meat consumption. Indeed, more than **% of French people claim to be flexitarian and this explains their desire to always have a vegetarian alternative when they go to restaurants. In particular, **% of French people would like classic table-top restaurants to offer * or * vegan dishes on their menu, and this figure rises to **% for fast food restaurants. [***]

Gastronomy is also following the movement to enhance the value of plants. Claire Vallée, the founding chef of the ONA restaurant (***), is the first chef to have been awarded a Michelin star for her plant-only cuisine. In Paris, the Shangri-La palace is a pioneer with the organisation once a month of "***% green" dinners orchestrated by chef Christophe Moret at the La Bauhinia restaurant and a "vegan tea-time" signed by ...

4.1 Overview of the different types of vegetable meats

There are several generations of meat substitutes. Each generation has brought a form of technological innovation compared to the previous one, with the common thread always being the desire to resemble animal meat more and more.

*st generation

These are products that do not resemble animal products. They are the ones that have been around for a long time and are used in the daily diet of people who have chosen a meat-free diet. These are the tofu type products or derivatives.

*nd generation

These are the products that come in traditional forms of meat: steaks, cutlets, nuggets, sausages, etc.. They are presented in these formats because consumers who wish to turn to a more plant-based diet often need guidance when it comes to rebalancing their plate. Offering formats that are easily understood in terms of how to cook and integrate it into meal removes this obstacle. However, meat specialists are not always in tune with the fact that these vegetable products use the same names as their industry, and new names for vegetable alternatives are expected to appear in the coming years. In this product segment, Bonduelle is a particularly ambitious French player. In particular, the northern group ...

4.2 The advantages of vegetable meat

Vegetable meat has several environmental, health and ethical advantages which are at the root of its nascent success with French consumers.

Environmental benefit

Meat consumption has a major environmental impact. According to United Nations figures, the sector's greenhouse gas emissions amount to **.*% of the world total (***), far ahead of aviation or maritime transport, which each account for less than *% of emissions. [***]

Vegetable meat production requires seven times fewer resources than that of real meat. For example, peas or brown algae, which are widely used in the synthesis of artificial meats, require much less water than raising cattle (***). [***]

Health benefit

In a report on the future of the meat market, analysts from the British bank Barclays said: "Animal proteins are becoming increasingly controversial, as they are one of the largest sources of greenhouse gas emissions, are energy intensive, and generate a lot of waste, not to mention the fact that they are implicated in many health problems. [***] The site Meat.info summarise the main health risks related to the consumption of animal meat :

**% of the *,*** human pathogens are of animal origin (***). **% of emerging animal diseases can infect humans. Livestock farming is responsible for the outbreak of epizootics (***). The massive use of ...

4.3 Obstacles to the growth of the vegetable meat market

In spite of all its qualities, vegetable meat is not a panacea for the moment. Indeed, there are still many criticisms and doubts about its future development.

An ultra-processed product harmful to health

Among the potential risks, analysts at the British bank Barclays cite "the fact that alternatives to meat are less healthy than they are because of additives added to adjust to consumer preferences". [***]

A lack of clarity on the composition of products

Third-generation meat substitutes, in particular, present particularly complex formulas with a clear lack of transparency for the consumer. Christophe Pichot, head of the plant group at Sojasun explains that "Beyond Meat and Impossible Foods have a Wing or Thigh side to them, whereas it is necessary to be very clear about the naturalness and composition of the food". Convincing the modern consumer, who is increasingly attentive to the origin and composition of the food on his plate, represents a major challenge for vegetarian meat producers. [***]

Potential future food crises

While the food crises of recent years have often involved animal products and thus naturally lead to the development of vegetable solutions, we still have little experience with new sources of protein. The next few years will most ...

5.1 Food regulations

Meat substitutes are subject to a set of standards governing the production and transport of food for human consumption

Thus the following standards apply to the production and transport of these foodstuffs:

Regulation (***) No ***/**** of the European Parliament and of the Council of ** April **** on the hygiene of foodstuffs. Order of ** July **** amending the Order of ** May **** on the hygiene rules applicable to certain foodstuffs and food preparations intended for human consumption. Order of ** July **** laying down the technical and hygienic conditions applicable to the transport of foodstuffs. Order of * July **** on the hygiene rules applicable to establishments for the storage of certain foodstuffs OJ of ** July ****. Order of * May **** regulating the hygiene of foodstuffs delivered directly to the consumer.

On the other hand, meat substitutes are not affected by the specific regulations on the meat market such as :

Order of * April **** laying down the conditions for the approval of establishments for the storage of animal foodstuffs and foodstuffs of animal origin. Order of ** December **** on the health rules applicable to retail trade, storage and transport activities of products of animal origin and foodstuffs containing them. Order of ** July **** amending the Order of ** March **** on the conditions to be met by ...

5.2 Regulation on the appointment of meat substitutes

On Wednesday ** May ****, the National Assembly definitively adopted the law on the transparency of consumer information on agricultural and food products. The text includes a number of provisions adopted in the framework of the Egalim law but which had been retooled by the Constitutional Council in October ****.

It is now prohibited to choose names used to designate foodstuffs of animal origin to describe, market and promote foodstuffs containing vegetable proteins. The vegetarian manufacturers who market sausages, minced meat and steaks made from vegetable proteins will therefore have to review the indications on their packaging.

This law makes the cattle and pork sectors happy, as they praise, through their union, "a real progress in terms of transparency of information to the consumer". It is obvious that this legislation complicates the task of the vegetable meat manufacturers who will have to face the costs related to the change of name of their products but especially to a consumer disturbed by the change of the name of the products he was beginning to consume.

The Act will take effect after the threshold to which it refers has been set by decree. [***]

6.1 Segmentation

• Olga Groupe (Triballat Noyal)
• Nutrition & Santé Groupe
• Tossolia
• Fleury Michon
• LDC Groupe
• Beyond Meat
• Les Nouveaux Fermiers
• Accro (Nxtfood)
• Heura
• Umiami