Sugar and
Sweeteners in France- Market Report
HEADLINES
- Sugar and sweeteners sales decline by more than 1% in 2010
to 471,000 tonnes
- Offers of alternatives to sugar such as sweeteners do
not perform well enough to offset the decline in sugar so that overall
negative growth is seen for sugar and sweeteners
- Sales of sugar and sweeteners are expected to decline
by a CAGR of just over 1% in the forecast period
TRENDS
- Growing environmental concerns led the French to move
towards more natural and organic products. Such a trend was beneficial to
honey as it is perceived as a product without genetic modification, hence
its positive growth within sweeteners. Furthermore, the good performance
of honey was related to its availability throughout the year within retail
and foodservice thanks to a non-seasonal effect. As a result, honey
consumption recorded positive growth in 2010, also boosted by attractive
and more convenient packaging.
- The economic downturn led the French to spend more time
at home. However, cocooning and home cooking did not help sales of sugar
to grow. This was chiefly due to the importance of eating healthily, hence
a reduction in sugar consumption. The impact of government campaigns on TV
about healthy food gained ground in terms of changing French eating
patterns.
- The growing number of single-person households led
brand owners to adjust the size of products to their consumption. As a
result, Saint Louis Sucre SA launched tabletop sugar in a gable top liquid
carton in the size of 500g in March 2009. Such a choice of pack type was
based on convenience for grabbing and pouring the sugar thanks to a
plastic screw closure with airtight and watertight qualities. Despite
attractive packaging and marketing selling points such as natural
products, overall tabletop sugar consumption did not grow in 2010 due to
growing awareness of its negative impact on health.
- In the context of the review period, the negative
growth in 2010 remained in line with the previous years. The impact of
government TV campaigns strongly influenced eating patterns among the
French. Additionally, spending cuts saw a change in terms of shopping habits,
giving opportunities to private label products to make inroads at the
expense of brand name products. As a result, the French moved their
purchases of sugar to products sold at a lower retail price. Attractive
packaging did not help trigger sales of tabletop sugar, being chiefly
hampered by a higher retail price.
PROSPECTS
- Consumers will confirm their eating patterns by
choosing more natural products such as honey or agave syrup. Nonetheless,
predicted positive growth of sweeteners will not be enough to offset the
overall decline in sugar consumption, hence an overall negative growth
rate for sales of sugar and sweeteners over the forecast period.
- Previous and future government TV campaigns should have
a confirmed and stronger impact on sales of sugar and sweeteners over the
forecast period. Such a decline is expected to be strengthened by
awareness of diseases and better healthy eating habits.
- Compared to the review period, the forecast period
performance is expected to remain unchanged, with an ongoing decline.
Furthermore, consumers will substitute sugar consumption with eating more
fruits. Such a predicted trend should be consolidated by government TV
campaigns such as the one promoting the eating of five portions of fruits
and vegetables a day.
