Katie Campbell, Paris Office, Bord Bia – Irish Food Board
The organic industry is becoming more prevalent in the daily lives of French consumers. Worth €9.7bn in 2018 (+15.7% yoy), it has experienced 50% growth in the past 5 years, making it one of the biggest markets in Europe for organic. It has well and truly become accessible for all over the past decade with nine out of ten households purchasing organic products every two to three weeks.
Health is the biggest driver for consumers to buy organic, followed closely by environmental concerns. Taste is the most important criteria when it comes to choosing organic products, followed very closely by price, product origin and a recognisable organic label. The two most widely recognised and trusted labels are the AB label and EU certified label:
In terms of distribution, 49% of sales are through multiple retailers while specialist retailers account for 36%. Multiple retailers have heavily invested in this market, incorporating policies into their strategies for growth. Carrefour, for example, with its new programme Act For Food. A clear message is being conveyed regarding support and fair pay of organic producers and those that wish to convert, yet there is a general feeling of an impending price war among organic specialists who warn that the organic market needs to grow at the same pace as farming and production.
In terms of value, the largest categories are healthy food, eggs, long shelf life milk, seasoning and dressing, biscuits, pastries, yoghurts and chilled desserts. Highest growth comes from butter & cream, cheese, baby food, ambient desserts and yoghurts.
Despite growth, there is a lack of supply in various categories such as sheep meat, honey and honey-based products, beef, pork and seafood. Given the increased focus on organic and PL strategies by multiple retailers and lack of available supply in France, this highlights opportunities for Irish organic producers.
For more information contact katie.campbell@bordbia.ie.
References:
- Agence Bio (2019). Baromètre de consommation et de perception des produits biologiques en France. [online] Agence Bio. Available at: https://www.agencebio.org/wp-content/uploads/2019/02/AgenceBio-DossierdePresse-Barometre2019.pdf [Accessed 26 Jun. 2019].
- Agence Bio (2019). Un ancrage dans les territoires et une croissance soutenue. Les chiffres 2018 du secteur bio. [online] Agence Bio. Available at: https://www.agencebio.org/wp-content/uploads/2019/02/AgenceBio-DossierdePresse-Barometre2019.pdf [Accessed 26 Jun. 2019].
- Le Canard Enchaîné (2019). Tout n’est pas vert dans le bio. Le Canard Enchaîné (Dossier).
- Linéaires (2019). A l’assaut des spécialistes bio. Linéaires (357).
- LSA (2019). LSA Bio : En route vers la conversion!. LSA, (2556).