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Tuesday 29 April 2014

Eggs in France

Eggs in France-Market Report

HEADLINES
  • Volume sales growth of eggs remains flat in 2010 with sales at 739,000 tonnes
  • The growing demand for functional food such as eggs with omega 3 and omega 6 helps sales
  • Sales of eggs are expected to register a CAGR of almost -1% over the forecast period
TRENDS
  • Despite the lower purchasing power, demand for eggs moved further towards more premium alternatives such as free range and/or Label Rouge eggs such as eggs from hens kept in the open air. As a result, sales of eggs recorded flat growth in 2010 as consumers opted to buy more or less the same amount of eggs but better-quality eggs.
  • In the context of the review period, 2010 was a similar year in terms of growth. Consumers tended to move towards cheaper sources of protein due to greater price sensitivity. As a result, demand for standard eggs also contributed to this slight increase. Busy lifestyles, such as long working hours, led consumers to favour ready-to-eat meals such as salads. Hard-boiled eggs thus contributed to increasing sales of eggs within foodservice in 2010.
  • Awareness of health concerns was boosted by government campaigns on TV over the review period. As a result, the French tended to follow recommendations, hence the change in eating patterns towards healthy food. Growing concerns about the environment also generated increasing shares in volume terms for free range eggs as consumers gave priority to products with a low impact on the environment.
PROSPECTS
  • Demand for free range and Label Rouge eggs is expected to make inroads in sales over the forecast period. Such demand will not be enough to help boost sales of eggs overall as the French will be more cautious in terms of purchasing choices by buying fewer products of better quality. As a result, sales of eggs are expected to decline slightly with a CAGR of almost -1% over the forecast period.
  • Busy lifestyles should generate further demand for elaborate products such as ready meals. Consumers should thus look for more convenience in terms of meal preparation. Consequently, use of eggs at the industrial level will contribute to the negative growth in eggs consumption, hence having a negative impact on sales of eggs.
  • Increasing consumption of free range and Label Rouge eggs is not expected to trigger sales of eggs over the review period. The higher retail price of such eggs will limit the regularity of purchases. Moreover, consumers are expected to move further towards ready meals for more convenience, giving less room to eggs to grow over the forecast period.
  • Previous intensive government campaigns on TV should positively impact on eating patterns among the French. Egg consumption should therefore remain lower as demand for quality and preservation of the environment will drive sales of eggs over the forecast period.
CATEGORY DATA

Table 1 Sales of Eggs: Total Volume 2005-2010
'000 tonnes
2005
2006
2007
2008
2009
2010
Eggs 
744.4
734.4
735.3
738.4
738.9
739.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources


Table 2 Sales of Eggs: % Total Volume Growth 2005-2010
% total volume growth
2009/10
2005-10 CAGR
2005/10 TOTAL
Eggs 
0.0
-0.1
-0.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources


Table 3 Sales of Eggs by Distribution Format: % Total Volume Analysis 2005-2010
% total volume
2005
2006
2007
2008
2009
2010
Retail 
67.5
67.3
66.8
66.7
66.2
66.0
Others (including foodservice and institutional) 
32.5
32.7
33.2
33.3
33.8
34.0
Total 
100.0
100.0
100.0
100.0
100.0
100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources


Table 4 Forecast Sales of Eggs: Total Volume 2010-2015
'000 tonnes
2010
2011
2012
2013
2014
2015
Eggs 
739.1
738.8
734.5
730.6
726.9
721.9
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources


Table 5 Forecast Sales of Eggs: % Total Volume Growth 2010-2015
% total volume growth
2014/15
2010-15 CAGR
2010/15 TOTAL
Eggs 
-0.7
-0.5
-2.3

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources