The potato chip market - France (2024)

1.2 Rising global demand boosts the market

The global market for potato chips is estimated at US$**.** billion and is expected to grow at a CAGR of *.*% over the period ****-****[***]

What is the estimated growth of the global potato chips market? World, **** - ****, in US$ billions Source: ****

North America still represents the biggest market, thanks in particular to the United States. But rapid Westernization and urbanization in the Asia-Pacific region have changed people's eating habits and led to an explosion in demand for potato chips, making this part of the world the fastest-growing market. This market is present in all parts of the world, but is still underdeveloped in Latin America, Africa and the Middle East.

The primary driver of this global growth is simply rising demand for potato chips, especially in North America, Europe and Asia-Pacific. However, demand seems to be shifting towards products that are less fatty, more complete and cooked differently from the classic frying of potato chips, which is very unhealthy.

1.3 A fast-growing domestic market

In ****, the potato chip market was valued at *** million euros. Although this is a fairly small market in terms of value and volume, it has nevertheless been expanding steadily for several years. The health crisis and the ensuing reduction in mobility significantly weakened sales of potato chips in ****. While sales in supermarkets were relatively constant, it was on-the-go consumption (***) that were hard hit. In ****, however, growth has resumed in the sector, with the development of more diverse offers centered around organic produce and French production. [***]

The size of the potato chips market in France France, ****-****, in millions of euros, in % [LSAConso LSAConso

however, the sector was impacted by the war in Ukraine, which drastically increased potato prices. As a result, average potato chip prices have risen by **% between **** and ****, and by **% between **** and ****. The sector is also highly dependent on sunflower oil, **% of which is produced in Russia and Ukraine. APIBusiness

Over the past * years, the organic sector has developed at record speed, with growth of **% between **** and ****. Lay's, which is still the market leader for potato chips in France, launched its first two organic references in ****. In general, we're seeing an ever-increasing number of references in supermarkets and hypermarkets, ...

1.4 A paradoxical trade deficit

Paradoxically, France's trade balance for potato potato chips is very negative. Indeed, as Europe's leading potato exporter, you'd think that France would have become self-sufficient in potato chip production, but it imports a great deal from Belgium. As a result, the current trade balance for potato potato chips is in deficit by *** million euros. **% of potato chips on the French market are imported, but this figure is falling year on year with the emergence of SMEs offering local products.mergence of SMEs offering local products such as La Chips Française, created in ****, which has succeeded in rapidly establishing itself on the market. [***]

France's potato exports are much higher than its imports, and its balance of trade in this product is heavily in deficit. In recent years, France has tended to export even more, as most of its sales are of uncooked potatoes.

Value of total potato exports and imports France, ****-****, in billions of euros UNComtrade

The main buyers of French potatoes are European countries, notably Spain and Belgium. The vast majority of French potato imports also come from European Union countries. Who are the main buyers of French potatoes? France, in ****, in UNComtrade On the other hand, France imports ...

2.1 French aperitif preferences

According to an LSAConso survey in ****, **% of French people claim to enjoy an aperitif at least once a week, and for **.*% of them, it's automatically accompanied by a little something to eat or drink. Chips are still the main dish served on this occasion, although they can sometimes be served with dishes. And the French craze for this dish continues unabated, as it is the product most often cited as an aperitif must-have, far ahead of aperitif cookies such as Belins.

how often do you eat aperitifs? France, in ****, in % LSAConso

Consumer preference for potato chips is still growing, as the potato chips sector grew by **.*% in value between **** and ****, while the salted seeds sector grew by only *.*% in value. Sales of salted seeds, at * billion euros, are still much higher than those of potato chips, currently at *** million euros.

What are the must-have aperitif products? France, in ****, as % of total sales LSAConso

Certain brands stand out among consumers, led by Lay's, France's leading potato chip brand, owned by PepsiCo, with a **% market share in France. Studies show that buyers pay particular attention to the brand of potato chips. For many, the aperitif is now more associated with food than drink, ...

2.2 Clearly popular with the younger crowd

Unsurprisingly, the biggest consumers of potato chips are the under-**s. However, they are much less popular with the over-**s.

What is the penetration rate of potato chips among the French? France, in ****, in LSAConso

For many French people, industrial products such as potato chips are the preferred choice for aperitifs , thanks to their convenience and ever-changing tastes. In fact, they are present at aperitifs in over three quarters of cases.

Why do you prefer industrial products to fresh produce? France, in ****, in % LSAConso Chips are a sector in which buyers are particularly brand-conscious, with many declaring that they choose their pack of chips according to brand. Preferences vary greatly according to age, for example with the Vico brand which, although very popular among the **-** age group, seems to be much less appreciated by younger people, in favor of Lay's and Pringles. People aged ** and over consume fewer potato chips and pay less attention to crisp brands, as this graph shows. Which brands do the French prefer (***)? France, in ****, in French Preferred Brand The popularity of potato chip brands also varies slightly according to socio-professional category. While potato chips are most popular among people in the CSP- category, followed ...

1.3 Demand increasingly oriented towards private labels

The high inflation seen in French food prices over the last few months seems to have had an impact on potato chip consumption habits. The price of potato chips has risen by an average of **% between **** and **** , and this increase doesn't seem to be very well accepted by the French. **% of them say they have noticed a "shrinkinflation" phenomenon on savoury snack products, and on potato chips in particular. Shrinkinflation is a corporate strategy that consists in reducing the quantity of a product without lowering its price. Moreover, according to LSAConso**% of French people believe they have reduced the frequency with which they eat aperitifs because of inflation. But, against all expectations, aperitif products are not in decline at all, and have even grown by **.*% in value and *.*% in volume, thanks to the success of potato chips and tuiles. These products are still attractively priced, even after the price rises of recent years, and consumers seem to be prioritizing them over mass-market products, as they are synonymous with conviviality and togetherness for many French people. The fact that these foodstuffs have still managed to maintain good sales in **** shows that pleasure takes precedence over rationality here, and that these categories escape ...

3.1 Value chain

3.2 The different types of players on the market

Potatoes are first harvested by farmers, before being sold to potato chip manufacturers, via market traders. After arriving at the factory, they are sorted and peeled by machines before being washed. They are then thinly sliced and re-washed to remove excess starch, and at this stage are sometimes chemically treated to enhance their color. They are then fried and flavored before being sorted and packed. Once the processing stage is complete, the potatoes are redirected to points of sale, often supermarkets and hypermarkets, where they are sold. The companies that own the potato chip brands handle potato processing and packaging.

The potato chip market is concentrated around the biggest producers, even if some SMEs are managing to make their way into consumers' shopping baskets. By ****, private labels and big brands such as Lays, Brets and Vico will have **% of the market.

Big brands and potato chip producers

For a long time, the market has been dominated by the major potato chip brands, which are often subsidiaries of very large food industry groups. For example, the Lays brand, which by far dominates the potato chip market, belongs to the PepsiCo group. The German Intersnack group owns the Vico and Tyrells brands, the ...

3.3 The potato sector in France

France's potato sector is expanding at an ever-increasing pace, thanks in particular to exports of French potatoes to other European countries.

Sales in potato processing and preservation France, ****-****, in millions of euros INSEE

4.1 A highly diversified offering

Although plain salted potato potato chips are still the classic taste of potato chips par excellence, for several years now brands have been developing variations on the classic potato chip, playing on flavour, thickness and shape. There are embossed potato chips, or potato chips with a specific shape...

First and foremost, there are potato chips made from a variety of plant-based ingredients. These include

potato potato chips: the most popular and best-selling potato chips vegetable chips: sweet potato, tapioca, beet, carrot, parsnip, kohlrabi, etc. fruit chips: apple, banana, plantain cereal-based chips: tortilla, corn, etc.

But the most developed category is, unsurprisingly, potato potato chips, with several different references:

Classic salt potato chips Multipack potato chips Flavored potato chips (***) Premium chips Traditional potato chips (***)

Flavored and premium potato chips are the two main sectors of growing popularity. The "salt" flavor remains the best-selling, but other flavors such as cheese, vinegar, onion, spicy and barbecue seem to be particularly popular. the choice varies from country to country, from Lay's caviar potato chips in Russia, currently unavailable in France, to wasabi and soy sauce potato chips in Japan.

Chips with special shapes are also popular, especially with children. MonsterMunch, with its ghost-shaped potato chips, ...

4.2 Some popular chip types

Brand and model Price per ***g pack Brands of potato chips Lay's, Nature à l'Ancienne *,**€ Lay's, Spicy Flavor *,**€ Lay's Max Barbecue Flavor *,**€ Vico, extra crunchy Nature *,**€ Tyrell's, vegetable potato chips *,**€ Tyrells, Sea Salt/Cider Vinegar *,**€ Tyrells, Lightly salted *,**€ Bret's, Craquante Guérande Salt *,**€ Bret's, Comté *,**€ Bret's, Braised Chicken *,**€ French Chips, finely salted *,**€ Private labels Carrefour, plain chips *,**€ Carrefour, Barbecue-flavored chips *,**€ Pom'Lisse (***), crispy plain chips, Leclerc *,**€ Pom'Lisse, Barbecue-flavored chips, Leclerc *,**€ Marque Pouce, plain potato chips, Auchan *,**€ Auchan, plain wavy chips *,**€ source :[***]

The price difference between private labels and national brands is glaringly obvious, with prices ranging from one to four times for Tyrells vegetable potato chips. Vico has established itself as the low-price brand in France, and can even compete with private labels. The premium potato chip brands mentioned in this table are Tyrells and La Chips Française, which offer prices well above the usual levels.

4.3 Innovation focused on new flavors

In the potato chips sector, we are seeing innovation on three fronts.

The multiplication of flavors

The first trend is the diversification of potato chip flavors offered by brands. In stores, the number of potato chip references is increasing year on year. Bret's is the champion in this field, and has made it its trademark by popularizing some initially unexpected flavors, such as Fromage du Jura. For several years now, Bret's has been aiming to release five new flavors a year, based on the tastes most popular with young people. According to the company's CEO, cheese and spicy flavors have been the most popular in recent months. The research and development team at Bret's is also helping Altho innovate its private label potato chips.

Some of the latest flavors include :

Pastis, from Bret's Bleu d'Auvergne PDO, from Bret's cheddar and Jalapeno pepper, by Bret's Curry sauce, from Bret's Sweet mustard, by Vico Herbe de Provence, by Vico

When it comes to flavors, the sector is highly segmented and hermetically sealed between the various brands. For example, Bret's does not offer Barbecue flavouring, as this flavouring is already "owned" by Lay's, whose Barbecue chips have become a benchmark for barbecue flavouring. Premium ...

5.1 European regulations

As afood product, potato chips are subject to strict safety and quality standards. These standards are often given by European regulations and then applied in the country. The first two European regulations cited below deal with food safety and hygiene in general, while regulation ****/**** is specific to potato processing. The Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes (***) is the institution that enforces these standards in France.

Regulation (***) N° ***/****

Regulation (***) No. ***/**** establishes the basic principles of food safety in the EU, notably the traceability of food products, the precautionary principle to prevent risks to human health, and the responsibility of producers and distributors for food safety. It also led to the creation of EFSA, the body responsible for scientific risk assessment in the food chain.

Regulation (***) N° ***/****

Regulation (***) to identify and control health risks.

Regulation (***) ****/****

Acrylamide is a substance formed when certain foods rich in asparagine (***) as a known animal carcinogen and a possible human carcinogen. With a view to reducing acrylamide in foodstuffs, the European Union has set reference levels that will be considered as a performance indicator to check the effectiveness of mitigation measures implemented by countries. They are not, ...

5.2 The collective bargaining agreement

The production of potato chips is covered by the national collective agreement for the processed food industry.

The Convention Collective Nationale (***).

The employer must choose the most relevant CCN according to the company's activity, which will then apply to all its employees. The CCN covers more subjects than a branch agreement, which can specify certain points of the agreement, acting as an appendix. For example, aspects such as the start of the school year, the **th month, and on-call duty, when not specifically covered by the agreement or the Labor Code, can be regulated by the company's agreement and offer additional days off to employees (***).

The collective agreement for managerial staff of March **, **** introduced a compulsory supplementary provident scheme for executives, with a minimum contribution rate of *.**% of gross salary tranche A, covering various risks such as incapacity for work, disability, death, dependency, etc. (***).

It is important for every company covered by this agreement to keep up to date with the latest modifications, including those that have not been extended. The agreement can be downloaded free of charge from Legifrance to ensure compliance with the law (***).

In terms of remuneration, the agreement sets a minimum wage which must be at least ...

6.1 Player segmentation

• Intersnack (Knabber Geback Group)
• Kellogg’s
• Altho Brets
• Lays
• Cheetos (Frito Lay)
• Tyrrell
• Lorenz Snack (Bahlsen group)
• Bahlsen Group
• Bret's
• Doritos Frito Lay(Pepsico)
• Lay's (Pepsico)
• Miss Vickie's
• Vico (Groupe Intersnack)
• Aviko
• Pringles (Kellogg's)
• Kellogg's France - Kellanova France
• Sibell