Dissertation Help: Fruits in France

Fruits in France-Market Report

HEADLINES

Poor weather conditions such as heavy rains lead to a lower supply of fruits, which in turn leads to a decline in sales of fruits in 2010

Sales of fruits are expected to increase at a CAGR of slightly over 1% over the forecast period

TRENDS

Overall consumption of fruits saw slightly negative growth in 2010. This downward trend was explained by late imports mainly from Spain in May and June 2010 as fruit production was delayed due to poor weather conditions. As a result, domestic production enjoyed positive growth, but was not enough to meet customers’ expectations, hence lower consumption impacting on sales of fruits.

2010 was a good year for bananas. The French changed their purchasing habits by switching to more affordable fruits due to spending cuts in their budgets. As a result, bananas enjoyed positive growth thanks to low retail prices. Furthermore, this type of fruit benefited from promotional activities at retail prices lower than €1 per kilogram. Oranges, tangerines and mandarins performed well. The increase in consumption of oranges, tangerines and mandarins was also related to health concerns. Such fruits have different types of flavonoids such as powerful antioxidants that are claimed to be able to override free radicals.

Consumers showed a growing interest in Label Rouge products. This label shows that fruits and other food products have some specific characteristics superior to other products usually found on the market. As a result, some strawberries such as gariguette benefited from this label, giving consumers confidence in their quality. Overall, strawberries recorded positive growth in 2010.

Home-made meals changed over the review period. The French spent more time cooking from scratch in order to save money. As tastes evolve from one generation to another, consumers look for more exotic tastes. More elaborate or exotic recipes therefore enabled lemons and limes to grow in 2010. Added to their impact on health, such fruits are usually used in meal preparation, such as salads, main courses and desserts to make them tastier.

Sales of “other fruits” declined in 2010. Production of summer fruits delayed by poor weather conditions made for a more complex market due to the arrival of autumnal fruits. As a result, summer fruits remained difficult to sell as autumnal fruits remained more attractive in terms of retail price and taste for consumers. For example, melon was difficult to sell due to modest consumption, whereas pears performed well thanks to good retail prices.

In January 2010 the National Federation of Fruit Producers (Fédération Nationale des Producteurs de Fruits) launched the Fruidissi brand. This is aimed at ensuring fair earnings for fruit producers, promoting domestic production and protecting the environment through good practices. Offering seasonal fruits remained a key growth driver for this organisation, thereby contributing to overall positive growth in fruit sales.

Autumnal fruits performed well in 2010. Fruits such as pears recorded positive growth thanks to acceptable retail prices. However, sales of grapes were impacted negatively by heavy rains in October, with supply unable to meet demand.

Environmental concerns grew over the review period. Willingness to reduce CO2 emissions led the French government to promote domestic seasonal fruit production, hence increasing demand for it. As a result, demand from consumers was also turned towards organic/fairtrade fruits, with these also therefore seeing overall positive growth. Within foodservice, organic/fairtrade fruit consumption remained restricted due to tight allocated budgets such as within school canteens.

Ongoing government TV campaigns about consuming five fruits and vegetables a day had a strong influence on eating patterns, hence encouraging a change in purchasing habits. Awareness of obesity and other diseases related to bad diets led the French to move towards healthy food. As a result, sales of fruits saw positive growth as a whole over the review period (2005-2010).

PROSPECTS

Sales of fruits are expected to perform well with a CAGR of over 1% over the forecast period. The French should continue to favour a healthy diet and therefore consumption of fruits. Producers should boost sales of fruits by displaying attractive packaging such as fruits sold in wooden baskets at reasonable retail prices.

Sales of fruits should nonetheless be impacted by lower consumption within foodservice. Higher price sensitivity and spending cuts should impact overall fruit growth as the French will favour more home consumption as the uncertain economic climate is expected to show a moderate recovery over the forecast period.

Compared with the review period, sales of fruits should perform better over the forecast period. Awareness of healthy diets and willingness to pursue them should trigger sales of fruits, hence the expected positive growth. Fruits such as bananas, oranges, mandarins, and peaches/nectarines should perform well as they remain well known and available at affordable retail prices.

The economic crisis favoured the growing trend towards home-made meals. As a result, the French are expected to be more demanding in terms of consumption by moving on to more exotic fruits such as litchi or pineapple. Nonetheless, consumption of such fruits should depend on levels of social classes and purchasing power.

Demand for healthy snacking is expected to boost sales of exotic fruits as consumers will look for more convenience such as fruits that are ready to eat. Grocery retailers such as Galec should carry on promoting healthy snacking by displaying portions adjusted to on-the-go consumption at checkouts.

Poor weather conditions could slow down fruit imports over the forecast period. Moreover, price sensitivity should rise over the forecast period as the French will be more careful in terms of spending. Sales of fruits could be threatened by changes in breakfast eating patterns such as with fruit juices. Growing demand for smoothies could have a negative impact on overall fruit consumption.

Promoting domestic production could have a positive impact on sales of seasonal fruits, for example pears, grapes or melon. Organisations such as Fruidissi and initiatives from grocery retailers should encourage such a trend. Promotional activities are also expected to help sales of fruits grow over the forecast period.

Dissertation Writing Help