Open to Imports

Country Content Sections/Tabs

Country Content Sections/Tabs

Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Artisanal brands lead the organic packaged food and beverages market in France, recording a value share of 11.1%, followed by Koninklijike Wessanen NV with a share of 4.1% and Lactalis Groupe with a share of 3.0%.
  • Ranking 3rd in global market size, 5th in per capita spending and 9th in forecast growth, France is one of the most favorable markets for organic players considering the high growth potential of organic products despite their significant penetration level.

  • Organic products in France registered a market size of US$4.2 bn in 2019, representing 8.9% of global demand with a per capita expenditure of US$64.97.
  • With the high potential for organic dairy products and organic beverages, organic products are expected to show significant growth in the coming years, recording a forecast CAGR of 8.6% for the period 2019-2024, and reaching a market size of US$6.3 bn by 2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in France recorded a value increase of 12.1% in 2019, registering a market size of US$4.2 bn.
  • Growth in organic packaged food was led by organic cheese, with a current value increase of 30.0% in 2019.
  • Organic black tea witnessed the strongest retail current value growth in 2019 within organic beverages, increasing by 30.0%.
Market Trends
  • Organic packaged food has grown in popularity among French consumers in recent years. One primary driver of this growth is the increasing number of food production scandals in the past few years, such as the salmonella infection at Lactalis’ Craon plant and the concerns over fipronil in egg-based products. These scandals increased consumer awareness on the importance of food safety and encouraged preference towards organic products.
  • Organic beverages also benefitted on the back of food scandals and have gained more shelf space in retail outlets. In 2019, all organic beverages categories saw positive growth; however, the most significant share of sales came from organic fruit/vegetable juices, representing about 60.0% of sales for organic beverages in 2019. Organic beverages will continue growing over the forecast period with value CAGR of 8.6% between 2019-2024, with rising manufacturers activity as the category is considered a convenient way to alleviate unit price deflation.
Competitive Landscape
  • Pressade Bio was one of the forerunners and remained the only brand with a double-digit value share of 13.2% in the fragmented market of organic beverages in 2019. The success of the company is attributed to its comparatively lower prices. While it is packaged in a brick liquid carton and is perceived as 100% juice, in reality, Pressade Bio is only nectar, thus, much cheaper than the organic variants Tropicana Bio and Joker Le Bio from non-organic juice specialists such as PepsiCo France and Eckes-Granini France, respectively.
  • As organic beverages have recorded significant success in France, the category presents opportunities for the declining sales of private label products, which still account for a third of overall organic beverage sales in 2019. Moreover, modern grocery retailers are focusing on slashing prices of their private label offerings, as well as in expanding their organic range to appeal to broader consumer tastes. One example of this is Carrefour implementing a plan to significantly expand their organic range by 2022, which led to an expansion plan from Leclerc, its main rival in modern grocery retailing.
  • Several conventional packaged food players are now interested in the potential of organic packaged food, further fragmenting the category. Some examples include Nestlé France and Blédina, expanding their organic portfolios under their Naturnes and Blédina brands, competing with more established organic baby food players such as Hipp and Vitagermine. Overall, Nestlé France has now launched around 60 organic baby food products in recent years including Les P’tit Goutes (flavoured milk) and Naturnes (shelf-stable ready meals) after a long absence in organic baby food. Additionally, organic baby food brand Good Goût is also registering high sales, while initially, the brand was only available in organic specialist retailers; its products are now sold in most supermarkets and hypermarkets.
Prospects And Growth Opportunity
  • Increasing concerns over food safety and animal welfare are helping boost demand for organic products. Furthermore, the category is benefiting from increasingly affordable prices and more extensive distribution across most channels. These products are also increasingly perceived to taste better, which was not always the case a decade ago. Organic packaged food is expected to have a positive outlook, recording a value CAGR of 8.9% over the forecast period 2019-2024.
  • While organic packaged food has witnessed significant growth as a whole, some categories are more favored by consumers, with many French consumers willing to pay a premium for organic variants of bread, milk, olive oil and cheese. While the demand for these products except for cheese is due to the reducing price gap between traditional and organic variants, demand for organic cheese is facilitated by the French appetite for cheese overall, with an emphasis on taste, authenticity and terroir (a concept linked to local produce). Furthermore, the demand for organic cheese and dairy products is expected to continue as prices continue to decline and government intervention helps supports local producers, thus, boosting the growth of organic packaged food overall in the forecast period 2019-2024, to reach a market size of US$5.3 bn by 2024.
  • While consumers show concerns regarding particular ingredients, such as taurine in energy drinks and artificial colors in concentrates, the organic label is well trusted. Thus, the promotion of organic variants in these products is helping improve sales, even among health-conscious consumers. To avoid an artificial reputation, manufacturers focus on organic and natural products, such as those marketed by Overstim or BioDrink (PunchPower). In the energy drinks category, due to its association with nightlife and its potential health repercussions, organic recipes are set to forge ahead after the success of Organics from Red Bull and Scheckter’s Organic Energy, with this growth expected to remain strong over the forecast period 2019-2024.
General Health And Wellness Trends
  • Health and wellness products continued to record strong growth in France, post substantial sales of US$21.4 bn in 2018. Both health and wellness packaged food and health and wellness beverages witnessed higher growth in 2019 than in 2018, with organic packaged food recording growth of 4.2% in 2019, post a gain of 4.0% in 2018, and organic beverages recording a growth of 3.3% in 2019, post an increase of 2.7% in 2018. Organic products witnessed remarkable sales, while better for you and fortified/functional products struggled to gain similar levels of momentum. The main reason for the struggle in better for you and functional/fortified products is the low level of consumer confidence, as consumers doubt the efficacy of these products, with some products even seen as artificial or unhealthy.
  • The effects of the sugar tax introduced in 2018 have also been witnessed within soft drinks, with many brands such as Red Bull, Sprite and Lipton launching new reduced sugar variants, with natural ingredients. The implementation of the Nutri-Score towards the end of 2019 also influenced sales of health and wellness products, as consumers began to make more informed and careful decisions. The shift in consumer behavior, prioritizing the health aspects of packaged food and beverages is expected to continue over the forecast period 2019-2024.
General Economics And Demographic Landscape

Economy:

  • The economy of France is expected to decelerate slightly in 2020, with real GDP declining by 0.7% as global economic conditions weigh down on exports. However, tax cuts and the impact of social emergency measures are holding up disposable income and consumption.
  • Private final consumption registered an increase of 7.0%, with a growth of 6.9% anticipated in 2020, supported by rising wages, falling inflation and supportive fiscal measures.
  • Unemployment was 8.6% and is expected to remain the same in 2020. A slowdown in economic activity is also indicative of a slowdown in private sector employment growth.

 

 Population demographics:

  • The population of France has been growing slowly but has also witnessed a significant level of ageing. The total population in 2019 reached 64.8 million, an increase of 6.0 million since 2000.
  • The median age is increasing, reaching 42.1 years in 2019. This indicator is expected to reach 44.2 years by 2030. The proportion of the population over the age of 65 reached 20.3% in 2019. This is expected to rise to 24.1% of the total population by 2030.
  • Fertility has witnessed an increase in the past two decades, with the fertility rate in 2019, reaching 1.8 births per female, which was slightly below the replacement level. This indicator is expected to remain at the same level through 2030.
     

Income & expenditure:

  • The savings ratio of France is significantly higher than the regional average, reaching 14.1% of disposable income in 2019. Tax cuts and social security contributions are expected to allow households to build their savings.
  • Consumer expenditure per capita was recorded at US$21,487 in 2019. In real terms, the indicator will rise by 1.0% in 2020. For the period 2020-2030, total consumer expenditure is expected to witness a cumulative increase of 12.9%, averaging 1.2% annually.
  • Disposable income per capita in 2019 was US$25,076, with the indicator expected to grow by 0.9% in real terms by 2020. For the period 2020-2030, total disposable income is expected to witness a cumulative increase of 13.4%, growing at an annual average rate of 1.3%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

20,117.8

20,701.3

21,438.6

22,272.6

22,956.4

23,648.9

24,365.2

3.4%

3.0%

Organic packaged food and beverages consumption

USD million

2,929.5

3,317.0

3,754.4

4,210.6

4,653.1

5,083.9

5,509.6

12.9%

8.8%

Organic packaged food consumption

USD million

2,468.9

2,774.0

3,129.2

3,493.5

3,869.1

4,239.3

4,612.9

12.3%

9.2%

Organic beverages consumption

USD million

460.6

543.0

625.2

717.1

784.0

844.5

896.7

15.9%

6.9%

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

%

14.6%

16.0%

17.5%

18.9%

20.3%

21.5%

22.6%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

64.5

64.6

64.7

64.8

65.0

65.1

65.3

% Middle and upper class of total population

%

31.9

32.0

32.1

32.2

32.3

32.3

32.4

% Population aged 65+

%

19.1%

19.5%

19.9%

20.3%

20.6%

21.0%

21.3%

% Population aged 0-14

%

18.2%

18.0%

17.9%

17.7%

17.6%

17.4%

17.2%

% Population with higher education degrees

%

26.8

27.1

27.4

27.6

27.8

28.0

28.2

Average number of children per household

children

0.5

0.5

0.5

0.5

0.5

0.5

0.5

GDP per capita

USD per capita

38,794.2

39,760.1

40,698.2

41,770.4

41,382.3

42,014.2

42,482.8

Consumer expenditure per capita (US$)

USD per capita

20,459.7

20,936.8

21,392.9

21,865.6

22,048.7

22,257.2

22,479.7

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

USD per capita

2,745.7

2,777.0

2,805.2

2,876.4

2,962.1

3,066.6

3,112.4

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Paris

11.7

Top cities by population (2019)

2

Lyon

2.0

Top cities by population (2019)

3

Marseille

1.7

Top cities by population (2019)

4

Lille

1.3

Top cities by population (2019)

5

Toulouse

1.3

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Carrefour SA

Top grocery retailers by sales (2019)

2

E Leclerc

Top grocery retailers by sales (2019)

3

ITM Entreprises SA

Top grocery retailers by sales (2019)

4

Auchan Group SA

Top grocery retailers by sales (2019)

5

Casino Guichard-Perrachon SA

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To France

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2018

France

1

Organic Carrots Fr/Ch

1,258,008

2018

France

2

Organic Peas Fr/Ch

17,400

2018

France

3

Organic Vinegar and Substitutes

12,041

2018

France

Total

Total Organics*

1,287,449

2017

France

1

Organic Carrots Fr/Ch

2,362,866

2017

France

2

Organic Strawberries Fresh

231,308

2017

France

3

Organic Lettuce Not Head Fr/Ch

49,934

2017

France

4

Organic Tomato Sauce Ex Ketchp

16,291

2017

France

5

Organic Oranges Fr/Dr

6,270

2017

France

Total

Total Organics*

2,671,069

2016

France

1

Organic Carrots Fr/Ch

1,593,584

2016

France

2

Organic Grapefruit Fresh

65,520

2016

France

3

Organic Coffee Roast Not Decaf

8,880

2016

France

Total

Total Organics*

1,667,984

Note : Total organics is the sum of all exports in a particular year. Also, as per the USDA GATS, there were no exports to France in 2019.
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

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.

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).
Regulation (EU) 2019/2164, which amends Regulation (CE) 889/2008, changed some of the lists of inputs allowed in organic agriculture and processing.

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

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.

Beginning February 3, 2020, port of entry health authorities will only endorse a certificate of inspection if the certifier issued it prior to export. Certain sections of the certificates (boxes 13, 16, and 17) may be filled in with provisional information, since certifiers can not verify all of the data before the product is exported. The provisional information must be confirmed/updated within 10 days, and before the certificate can be endorsed at the port of entry.

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 for equivalence 

Control bodies in the European Union

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.

Additional Information

http://www.organic-europe.net/country-info.html

USDA’s GAIN Report France Exporter Guide (2019)
USDA's GAIN Report France Retail Foods (2020) 
USDA's GAIN Report France Food Processing Ingredients (2020)
USDA's GAIN Report France Hotel, Restaurant, and Institutional (HRI) (2019)
USDA’s GAIN Report France Food and Agricultural Import Regulations and Standards - Narrative (2016)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)

USDA’S GAIN Report New EU Organic Regulation Entering Into Force in 2021 Regulatory Update (2020)
USDA’S GAIN Report EU Launches Consultation on Future Organics Action Plan (Sept. 2020)
USDA’S GAIN Report Food Labeling Initiatives in the EU Farm to Fork Strategy (2020)
USDA’S GAIN Report Pesticides Initiatives in the EU Farm to Fork Strategy (2020)
USDA’S GAIN Report New EU Organic Regulations for Early 2018 (2017)
USDA’S GAIN Report Electronic Certificate of Inspection Required for EU Organics Trade (2017)
USDA’S GAIN Report Good Prospects for US Organic Exports in the EU (2020)
USDA’S GAIN Report U.S. Organic Food Exporters Set to Double Sales to EU (2019)
USDA’s GAIN Report Plenty of opportunities for U.S. organics in the EU market (2015)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA’s GAIN Report EU Food and Agricultural Import Regulations and Standards - Certification (2020)
USDA’S GAIN Report EU-28 Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA’s GAIN Report EU-28 EU-U.S. Organic Trade Update - January 2014