The spices market - France

1.2 The global spice market

The global spice market is a vast and growing market. The cultivation of spices spread under the influence of colonial empires. The use of pepper, vanilla, saffron and chilli has gone from being geographically limited to becoming a culinary essential. What's more, more and more spices are being used in industrial processes: cloves, for example, are the main flavoring used in the manufacture of flavored cigarettes. The market for spices and seasonings is estimated to be worth almost $**.* billion in ****, and is set to continue growing over the next few years, at a CAGR of *.**%.

The spices market is driven by the growing demand for "world cuisines" worldwide. Indeed, the growing popularity of Oriental, Asian and Mexican cuisines using quality foods and spices is likely to drive market growth in the long term. Growing awareness of the health benefits of spices also offers opportunities for market expansion over the next few years, particularly for turmeric and saffron.

In addition, the rapid expansion of fast food in emerging countries is set to accelerate demand for spices worldwide, thanks to the democratization of fast food chains.this is due to the democratization of restaurant chains, which use chilli flakes, dried ginger, black pepper ...

1.3 The French spice market

The spice market in France is valued at ***.* million euros between April **** and April ****, down **.*% on the previous period. Despite this year's decline, the market has enjoyed strong growth in previous years. Industry players remain confident in the market's dynamism, thanks to a number of favorable trends: the craze for world cuisines, particularly Lebanese and Cajun, the changing eating habits of French consumers, their desire to cook and their search for food products of better quality, particularly in terms of taste. The spice market in France France, **** - ****, in M€ Source: ****

The spice market in France is part of the broader market for dried herbs used in cooking: peppers, spices and various blends sold on the market. This segment is dominated by herbs, which will account for **% of PHEM (***) sales in ****. Spices account for **%, with growth of +**.*% between **** and ****. [***]

Evolution of the PHEM segment, by volume France, **** - ****, in millions of units Source : LSA Conso Breakdown of PHEM sales France, ****, in millions of euros Source: ****

1.4 France's place in the international spice trade

France's balance of trade in spices is heavily in deficit. It imports more than twice as much as it exports, i.e. over $*** million in imports in ****, for $** million in exports.

French exports of condiments and seasonings France, **** - *****, in millions of euros Source: ****

Its main suppliers are the Netherlands, Germany and Spain. As for its customers, France exports mainly to Switzerland, the UK and Nigeria.

France's main customers in the spices market France, ****, in millions of dollars Source: ****

France's main customers in the spices market France, ****, in millions of dollars Source: ****

2.1 France's favorite spices

A survey published by Ipsos in **** under the name Le Goût des Français, looks at French tastes in terms of cooking. First and foremost, **% of French people use spices in their cooking. On the other hand, only **% of French people surveyed say they use herbes de provence in their cooking.

French taste in cooking France, ****, in Source: ****

Thus, the French are considered to be big consumers of spices: in Europe, the French are the third biggest consumers of spices, behind the Germans and Belgians. Vanilla is considered thefavorite spice of the Frenchwho consume an average of*.* grams a yearin various forms. Vanilla is marketed indifferent formsfrom natural vanilla beans to various synthetic vanilin molecules[***].

2.2 Spice demand as a percentage of French food spending

In a deteriorating economic context, where the question of purchasing power has become central, food expenditure is the adjustment variable in household budgets, particularly for the less well-off. At the end of ****, the price of the French food basket cost an average of €***.** according to Franceinfo, up **.*% year-on-year according to NielsenIQ, against a backdrop of global inflation following the Ukrainian crisis. The "Observatoire des prix" report produced by Familles rurales provides us with the following estimates:

The average price of the French food basket France, **** - ****, in € Source: ****

The average budget allocated to the consumption of spices, condiments and seasonings France, **** - ****, in euros Source: ****

2.3 The use of spices in industrial processes

The use of spices is not limited to the catering and food sectors. In fact, spices are used on a large scale in France:

By the food industry, in particular industrial chocolate makers (***) By the cosmetics industry, notably during the industrial processes involved in the production of perfumes and other skincare products By private individuals directly, or by craftsmen (***)

*.*.* The food industry

According to the **** report by the French Ministry of Agriculture and Food, the agri-food market in France represented sales of ***.* billion euros (***) in **** [***]. Nevertheless, the contribution of the sector's different segments is widely differentiated, as can be seen in the following graph.

Sales by agricultural sector, including exports France, ****, in M€

The agri-food market integrates large quantities of spices and spice-derived products into their industrial processes. The bakery products manufacturing segment is the one that has seen the strongest growth, pulling up French demand.

Sales index for food industry sub-segments - Domestic and export markets France, ****-****, base *** in **** INSEE

*.*.* The cosmetics industry

The cosmetics market in France (***), which includes cosmetics manufacturing and international exports.[***]

Cosmetics sales by category France, ****, in FEBEA

2.4 French consumers are increasingly sensitive to the composition of their products and the origin of their ingredients

Consumers are increasingly sensitive to the composition of cosmetics and food products, some of whose ingredients and additives may be harmful. Consumers are increasingly wary of the cosmetics and food industries, and are paying more and more attention to product quality and the sustainability of the value chain. The Yuka start-up responds to consumers' need for transparency by, for example, enabling them to scan cosmetics and food products and classify them according to their harmfulness to the body. The app, which thus recommends products that are better for your health, has been downloaded ** million times since its launch in ****, including ** million in France. It is expected to have * million active users by ****.[***]

The purchase of beauty products guided by transparency France, ****, in Source : Klarna According to a survey conducted by Klarna in February ****, the French are increasingly demanding transparency from beauty companies (***). In addition, **% of those surveyed said they buy and use natural and organic products. This trend is on the rise, as the new generations are the ones who use the most products in this category. Share of consumers using natural and organic beauty products France, ****, in Source : Klarna A similar trend can be observed in the choice of food ...

2.5 Demand for spices driven by the craze for world cuisine

Today, spice sales are being driven by the trend towards world cuisines, particularly Asian and Tex-Mex, which are taking root in French eating habits. According to Circana, the world products sector (***) will account for sales of *** million euros over the period from the end of February **** to the end of February ****, in the following distribution channels: supermarkets, hypermarkets, convenience stores and drives. This figure is *% up on the previous year.

Growth in cuisines du monde sales France, ****-****, in Source: ****

Amélie Six, head of TWF-Epidis' Grocery and World Products Marketing Group, reports that "there has been good momentum since last summer, and the market continues to be buoyant". The market is currently driven by the Asian products segment. Among these, Korean cuisine is gaining momentum, driven by K-pop and Korean TV series. The range of Korean products on the shelves is growing ever wider. Another pillar of the market is Tex-Mex cuisine, whose growth has been slower in recent months, but which still has strong market potential. Rodrigo Patino, of the Old El Paso Group, notes that "there are still huge opportunities for Tex-Mex. We're very confident about its future in France".

3.1 Simplified diagram of market structure

3.2 Spice distribution networks in France

Spices are a key private label product. Most sales of spices, herbs and blends are sold under private labels. In ****, the value of sales of spices marketed under private labels is *** million euros, while the value of sales of spices sold under national brands is only ** million (***).

Breakdown of condiment and seasoning sales in supermarkets France, ****, in millions of euros Source: ****

Spices still suffer from the image of a basic necessity for most French people. For this reason, most sales of spices, herbs and blends, as well as pepper and salt, are made via private labels.

Among national brands, Ducros, Sainte-Lucie and Spigol dominate the spice market in supermarkets. Ducros would have sales of ***.* million euros in ****, and Sainte-Lucie **.* million euros in ****. Cepasco, which includes Spigol and La Planète des Épices in supermarkets and Espig in traditional channels, posted sales of **.* million in ****. Aziza Khalil, from Ducros France, underlines the vitality of the market and the potential of direct-to-consumer sales: "The drop in purchasing frequency is palpable, but the category has managed to broaden its base, with a penetration rate two points higher than in ****. What' s more, according to Kantar, eight out of ten French people now cook their ...

3.3 An unbalanced value chain

The spice market is a highly complex raw materials market. Indeed, it is characterized by the fragmentation of the value chain and the large number of intermediaries, which confers considerable market power on the major industrial groups, to the detriment of small-scale producers.

The example of vanilla

The example of the vanilla trade provides an interesting insight into how the value chain works. According to the study Recipe for Change, the need for improved livelihoods of vanilla farmers in Madagascar, more than **,*** small-scale producers make their living from vanilla cultivation in Madagascar: **% live below the poverty line. The highest margins go to the various exporters and intermediaries who collect the vanilla from small producers and export it to international industrial companies.

4.1 Spice production stages

Broadly speaking, the production and marketing of spices involves four different stages: cultivation, processing, blending and brand creation:

Cultivating spices: cultivating spices can be complicated by the specific characteristics of each spice produced. Indeed, depending on the type of spice, techniques and weather requirements may vary. Treatment: the traditional treatment applied to most spices is drying. Once dried, spices can last longer and retain better taste characteristics. The shelf life of dried spices can vary, but is traditionally between ** and ** months. Blending: blending spices is an interesting step, as many herbs are marketed directly as blends. Creation of a brand name under which the spice will be marketed, both in specialist stores and in supermarkets.

4.2 The volatility of spice prices

Vanilla is considered the most expensive spice in the world, behind saffron. Indeed, a kilogram of vanilla costs on average between €*** and €***, far behind saffron, which can be worth tens of thousands of euros per kilogram, but well ahead of other spices such as cumin, pepper and others, whose price per kilogram is often less than €***.

The world's most expensive spices World, ****, €/kg Spices Review

Spice prices are highly volatile. This is because spice prices are not regulated by a central institution or an international exchange. Most spice markets are characterized by chronic imbalance: small producers in the South, large buyers in the more developed countries, and traders in between who adjust prices and stocks according to the economic context and the vagaries of the weather, which can enable them to sell for three times as much as they bought.

Pepper, for example, has seen its prices plummet due to the massive influx of production from Vietnam. Vietnam is now the world's leading producer, followed by Brazil and India. Since ****, however, pepper prices have been on the rise, with demand continuing to grow and supply declining slightly. This is due to higher transport, energy and packaging costs, as well as unfavorable ...

4.3 Premiumization of the spice offer

A number of changes are taking place among spice brands, notably with the development of organic products and premiumization, which are important growth drivers

Organic spices

Consumers are increasingly sensitive to the composition of food products, as some ingredients and additives can be harmful. Consumers are increasingly wary of the agri-food industry and are paying more and more attention to product quality and the sustainability of the value chain.according to a **** survey by Max Haveelar France (***).in ****, organic products accounted for *% of sales in the spices, herbs and blends segment, representing a high-potential market trend on which brands are seeking to capitalize by developing new references. Ducros, for example, has tripled its number of organic spice references between **** and ****, now offering **. Sainte-Lucie offers no fewer than **[***]

Number of organic references for leading spice brands France, ****, in number of references Source: ****

Premiumization

Premiumization strategies are another potential growth driver for the spice market, with spices moving upmarket.

The development of top-of-the-range brands such as Épices Rœllinger, La Cuisine Corsaire and Goulanyat is driving the market as a whole. Épices Rœllinger is developing a range of top-of-the-range spices selling at €*.* per **-gram bottle, as well as a range of gift ...

5.1 Regulations governing the production of food flavors and spices

Flavors are subject to regulatory harmonization at European level under regulation CE/****/****. Regulation (***) no. ****/**** lays down the conditions for the use of flavorings. This regulation also specifies the prohibited flavors and substances, the maximum doses that can be used for certain flavors, and the labeling rules applicable at European level. [***]. Food labelling is subject to regulations governing the labelling of foodstuffs delivered to the final consumer, governed at Community level by Directive ****/**, the provisions of which are set out in articles R-***-* et seq. of the French Consumer Code.

Another obligation, which concerns flavourings among other food ingredients, is the indication of allergens for flavourings derived from allergenic ingredients or simply for flavourings on allergenic carriers. This is the aim of directive no. ****/**, which modified́ the "labeling" directive on November **, ****, and provides for the declaration of allergenic ingredients, among those in the foodstuffs.allergenic ingredients, among those listed in this directive, which must be declared immediately after the flavoring concerned by this allergenic ingredient.[***]

6.1 Positioning the players

• Amora Maille
• McCormick
• General Mills
• Kraft Heinz
• Arcadie
• Fuchs Gewürze
• Sainte-Lucie
• Ducros (McCormick France)
• Moiret Ets
• Perles d'Anjou - CAPL (Coopérative agricole des Pays de la Loire)
• Trescarte
• Eric Bur
• Epices du Monde
• Daregal
• Colin Ingredients