Meat in
France-Market Report
HEADLINES
- Overall sales of meat down by 2% to 3.3 million tonnes
in 2010
- Distribution impacts sales of meat as consumers favour
offers from hypermarkets/supermarkets at the expense of hard discounters
- Poultry performs well with a 4% increase to 990,000
tonnes in 2010 thanks to affordable retail prices and good nutritional
impact with healthy eating habits becoming more important
- Sales of meat expected to grow at a CAGR of less than
1% over the forecast period
TRENDS
- Positive growth within poultry was triggered by
affordable retail prices compared to beef and veal. Consumers tended to
make more adjustments to their spending by favouring cheaper meat.
Furthermore, healthy eating patterns enabled poultry to see a rise in 2010
as white meats usually have less fat and the portions eaten are smaller.
As a result, poultry recorded the highest positive growth rate within meat
in 2010.
- Beef and veal usually remained expensive meat. As a
result, consumption of beef and veal was mainly driven by consumers on
medium and high incomes. However, promotional campaigns for veal in
April/May 2010, especially campaigns for Pentecostal veal, enabled the
relaunch of sales of beef and veal in 2010. As a result, sales of beef and
veal recorded positive growth.
- Consumption of lamb, mutton and goat was not successful
in terms of sales in 2010. The strong decline of -7% was chiefly
strengthened by price matters and weakness of imports. The distribution
offer therefore remained limited. As a result, lamb, mutton and goat
recorded the biggest decline in 2010.
- Increases in price fluctuations on commodities such as
wheat were chiefly driven by poor weather conditions in 2010. This had a
direct impact on feed grains for livestock, hence the strong price
increases at this level. However, price increases have not yet totally
impacted all retail prices within meat. On the contrary, beef and veal
were impacted less by such conditions as wheat is not the main food, hence
the positive growth.
- In February 2009 Fil Rouge (Fédération
Interprofessionnelle des Viandes Label Rouge) and Sylaporc (Syndicat des
Labels Porcs et Charcuteries) officially launched the Circle of Excellence
Meat (Cercle des Viandes d’Excellence) at the Sénat in Paris. This
organisation aims to, among other things, make known to consumers the
quality of meat available through grocery retailers, hence having a
positive impact on sales of beef and veal in the late review period.
PROSPECTS
- Overall, sales of meat are expected to grow at a CAGR
of less than 1% over the forecast period. Such predicted positive growth
will be triggered by home-made meals as the French will likely carry on
being more cautious in terms of spending. Promotional campaigns are also
expected to trigger sales of meat such as beef and veal thanks to
organisations such as Fil Rouge.
- The French are expected to make some practical choices
in terms of meat consumption over the forecast period. Nonetheless,
consumers are expected to buy less but better-quality meat thanks to
information from grocery retailers and associations. The importance of
eating meat as part of a healthy overall diet should also boost its
overall sales, hence the moderate predicted increase.
- Compared to the review period performance, sales of
meat are expected to benefit from promotional activities through grocery
retailers. Affordable retail price will therefore be a key growth driver.
Nonetheless, lamb, mutton and goat is expected to suffer from a lack of
knowledge of cooking it and its seasonal consumption such as religious
events. On the other hand, poultry will still perform well over the
forecast period thanks to its health benefits.
- Meat consumption will be strengthened by further
promotional campaigns and affordable retail prices. In the short term,
campaigns are expected to have a positive impact on meat, hence the predicted
positive growth. Consumers are also expected to become more practical and
orientate their purchases according to different offers.
