Open to Imports

OTA estimates total organic market consumer sales of France at about $ 5 billion USD per year.

  • The total market size for organic packaged food and beverages in France in 2015 is US$2,645.8mn, making the country the 3rd largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in France is US$41.20, which is the 8th largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Artisanal, which maintains 12.1% of total sales, followed by Koninklijke Wessanen NV and Lactalis, Groupe.
  • Organic packaged food and beverages in France will see moderate year-on-year growth of close to 6% in 2015. This is higher than the rest of the Western Europe region, which will experience nearly 4% year-on-year growth in 2015.
  • France maintains a market size for organic packaged food and beverages of US$2,645.8mn in 2015, which is 7.6% of global category sales.
  • Within the Western Europe region, only Germany surpasses France in total value sales of organic packaged food and beverages.
  • Despite the large market size, France will experience slow forecast growth of sales of organic packaged food and beverages, at 4.0% from 2015–2020.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in France in 2015 is US$2,645.8mn, making the country the 3rd largest market in the world by value.
  • Organic food and beverages have historically commanded premium prices in France, but the expansion of private-label organic products is contributing to lower unit costs.
  • The local food movement is gaining strength in France; consumers increasingly demand products that are both organic and locally produced

Market Trends

Competitive Landscape

  • The organic packaged food and beverage landscape in France is fragmented and very competitive.
  • Local artisanal producers lead with their combined market share among organic food manufacturers, but larger French firms such as Distriborg France and Lactalis France have carved out market shares of 8.9% and 5.6%, respectively.
  • French company Fruité Entreprises SA is the leader in market share among organic beverage manufacturers, but foreign companies PepsiCo and Mondelez also register sizeable market share.

Prospects and Growth Opportunity

  • The sales value of organic packaged food and beverages is expected to grow steadily over the coming years, but at a much slower rate than in the past, as the market matures.
  • More competition, new entrants into the market, and the increasing importance of private-label organic food and beverages will put downward pressure on unit prices.
  • The sales value of organic oils and fats, spreads, 100% juice, and chocolate-based flavored powder drinks are projected to grow at higher rates than other categories.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy

  • France has one of the largest economies in the EU and is the tenth-most-favored destination for foreign direct investment in the world.
  • However, France’s economic growth has been unimpressive in the past few years. Fiscal problems, high business costs, and weak productivity growth are major constraints.
  • GDP growth is projected to accelerate modestly in coming years, as the government has indicated a willingness to implement some structural reforms and housing starts are expected to increase.

Population demographics: 

  • In 2014 the population of France was 64.0 million, about 10.4 million more than in 1980.
  • The French population is aging, with a median age of 40.9 years old (up from 32.2 in 1980).
  • The fertility rate is rising but is still slightly below replacement level, which could lead to pressures on the French pension system and economy in the long term.

Income & expenditure: 

  • Per capita disposable income has declined slightly since 2009 but is projected to rise slowly but steadily in coming years.
  • Total consumer expenditure has risen modestly in recent years and will continue to grow in the medium term, roughly keeping pace with disposable income growth.
  • France’s savings ratio is much higher than the regional average, and is projected to continue to be so through 2030.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

 

Data type

2012

2013

2014

2015

2016

2017

2018

CAGR
(12-15)

CAGR
(15-18)

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

19,418.9

19,586.3

19,670.1

20,050.8

20,242.0

20,359.2

20,438.1

1.1%

0.6%

Organic packaged food and beverages consumption

2,125.2

2,291.2

2,472.3

2,645.8

2,786.1

2,901.9

3,004.0

7.6%

4.3%

Organic packaged food consumption

1,840.5

1,973.3

2,122.3

2,267.6

2,385.1

2,481.3

2,564.3

7.2%

4.2%

Organic beverages consumption

284.7

317.9

349.9

378.2

401.0

420.6

439.7

9.9%

5.2%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

10.9%

11.7%

12.6%

13.2%

13.8%

14.3%

14.7%

-

-

 

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Economic & demographic data

 

Data type

2012

2013

2014

2015

2016

2017

2018

 

 

 

 

 

 

 

 

Total population

63.4

63.7

63.9

64.2

64.5

64.8

65.0

% Middle and upper class of total population

41.5%

41.5%

41.4%

41.4%

41.3%

41.3%

41.3%

% Population aged 65+

17.3%

17.7%

18.2%

18.5%

18.9%

19.2%

19.5%

% Population aged 0-14

18.4%

18.4%

18.4%

18.4%

18.3%

18.2%

18.2%

% Population with higher education degrees

25.6%

26.0%

26.4%

26.8%

27.1%

27.5%

27.8%

Average number of children per household

0.5

0.5

0.5

0.5

0.5

0.5

0.5

GDP per capita

36,519.4

36,874.4

36,994.7

37,707.4

38,081.8

38,512.3

38,932.1

Consumer expenditure per capita (US$)

19,776.1

19,910.2

19,864.1

20,023.0

20,270.8

20,515.8

20,696.1

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

2,618.4

2,664.5

2,635.6

2,646.8

2,673.1

2,698.2

2,714.9

 

 

Retailer & urban area data

 

Data category

Rank

Urban Area/retailer

Population 
(mns)

 

 

 

 

Top urban areas by population (2015)

1

Paris

12.1

Top urban areas by population (2015)

2

Marseille

2.0

Top urban areas by population (2015)

3

Lyon

1.8

Top urban areas by population (2015)

4

Lille

1.4

Top urban areas by population (2015)

5

Toulouse

1.3

Top grocery retailers by sales (2015)

1

E Leclerc

-

Top grocery retailers by sales (2015)

2

Intermarché

-

Top grocery retailers by sales (2015)

3

Carrefour

-

Top grocery retailers by sales (2015)

4

Auchan

-

Top grocery retailers by sales (2015)

5

Super U

-

USDA GATS data

Rank

2015

2014

2013

2012

1

Asparagus

Coffee Roast

Carrots

Head Lettuce

2

Coffee Roast

-

Head Lettuce

Grapes

 

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

European Union (EU) Member States retain the authority to determine additional requirements for production within their country. They can also determine exceptions due to catastrophic circumstances, but cannot restrict access to products in compliance with EU regulations. In addition, the EC delegates most authority for the administration of organic programs to the Member States.

Agency(s) Contact Information: 

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

The European Union has an Equivalency Agreement with the United States.

General requirements; repeal of previous organic regulations: EC 834/2007 (.pdf in English)

Detailed rules on production, labeling and control including its first amendment on production rules for organic yeast: EC 889/2008 (.pdf in English)amended by (EU) No 1358/2014 (see below).

Rules concerning imported products: EC1235/2008 (.pdf in English)
Feburary 2013 amendment concerning imported products: (EU) No 125/2013 (.pdf in English)

Rules on organic aquaculture and seaweed production - Amendment in 2009 - implemented in 2010: EC 710/2009 (.pdf in English) 
Organic aquaculture and seaweed production updates (EU) No 1358/2014 effective January 1, 2015.

Detailed rules on organic wine: Regulation No 203/2012 (web; in English)

 

 

Date of Implementation: 

1992

Regulation and/or Standard Scope: 

EU standards cover crop, livestock and processing. Farm and handling plans are required, as well as detailed record keeping and detailed livestock feed standards.  Specific standards are included for aquaculture, seaweed, yeast, bees, and mushrooms. Criteria for determining allowed materials include consistency with the objectives and principles of organic farming, and materials must be of plant, animal, microbial or mineral origin. Synthetic substances, however, may be used when they replicate the natural sources and when they are approved for organic production in the EU.

Imported Products Requirements

Imported Products: 

EU requires that imported organic products meet EU standards. Non-EU organic products must include country of origin labeling if they wish to use the EU organic logo. Use of the EU organic logo is not required for products from outside the EU.

Certification and Accreditation

Certification: 

The EC requires organic certification for all those involved in production and handling, including importers. EC requires ALL processing operations to be certified, even if those products are below the 95% threshold for the "Organic" label.

EC delegates the authority for investigations, non compliance, mediation, and testing, as well as reporting, exclusion from organic sale, emergency treatments and appeals to the Member States in accordance with their respective control system plans.

The EC allows private sector standards for the product categories, such as cosmetics and textiles, which are not fully regulated by the EC.  In the EU certifiers (control bodies) can require additional organic crop, livestock and processing standards in association with the use of their certification seal.

List of control authorities and control bodies operating in third countries 

Other control bodies

Accreditation: 

Each EU Member State accredits certification bodies.

Additionally, the EU vests the authority for exchanging information on "infringements and irregularities" (enforcement) to certifiers through the Member State control systems as the vehicle to remove non-compliant product from the marketplace.  However, it is not clear how, or when, an organic certificate can or will be revoked.

In addition to the EC organic regulations for certification and accreditation procedures, the requirements of EN 45011 and ISO Guide 65 for accreditation must be met.

Definitions

Review definitions of terminology included in this website.