Vegetables in France

Vegetables in France- Market Report

HEADLINES

• Sales of vegetables stagnate at 2.7 million tonnes in 2010

• Bad weather conditions such as heavy rains in the spring slows growth of vegetables, contributing to the stagnation in sales in 2010

• Onions records the fastest growth of 3% to reach 146,000 tonnes

• Sales of vegetables are expected to increase at a CAGR of less than 2% over the forecast period

TRENDS

• Sales of vegetables, as a whole, recorded positive growth over the review period. This was largely due to the impact of government campaigns on TV and rising awareness of obesity and cardiovascular diseases, which undoubtedly led the French to pay more attention to their diet. 2010 growth was slightly lower than the average growth rate during the review period. Bad weather conditions in spring 2010 restricted the imports from Morocco and Europe by delaying production. Heavy rains also weakened the preservation of vegetables by making transportation difficult. As a result, the retail price increased in 2010. This explained the only marginal growth of vegetables sales during 2010.

• Awareness of healthy eating patterns was partly triggered by TV government campaigns to prevent obesity and cardiovascular diseases. As a result, the French were more willing to move towards healthy food. The importance of eating salads grew over the review period. Salad dishes have become more elaborate and include more ingredients. These trends helped onions to perform well.

• “Other vegetables” saw a very slight decline in 2010. This negative growth was chiefly explained by the limited number of imports due to bad weather conditions. As a result, lack of supplies led to some price increases for some products in “other vegetables” such as courgettes. Green salad was also impacted by such conditions, hence the decline. Nonetheless, sales of ready-to-eat salads and ready-to-cook vegetables enabled the offsetting of this negative growth as convenience remained a key growth driver.

• Seasonality remained an asset for producers and grocery retailers. In addition to sustainable development, seasonal vegetables were a selling point for grocery retailers by informing consumers about the impact of carbon footprint on the environment. Producers such as Prince de Bretagne therefore put forward seasonal products by organising La Fête des Légumes Primeurs from 17 May until 19 June 2010 in order to underline seasonality and freshness.

• Added to La Fete des Légumes Primeurs, Prince de Bretagne also launched in 2010 “Mon Panier de Saison” within vegetables in sizes of 2.5kg at a retail price of €10. The objective was to refer to the five fruits and vegetables a day campaign and therefore help consumers to eat better. Thanks to the convenient packaging in terms of carrying it, a basket was made up of five different vegetables and fruits, and its content changed every fortnight according to the seasons.

• This marketing ploy of baskets of vegetables was also used by Teralis, a distributor of organic vegetables and fruits. In 2010, Teralis launched a weekly basket of organic vegetables. It boasted attractive packaging and the inclusion of recipes as well, enabling Teralis to recruit and gain loyalty from consumers. Within foodservice, willingness to introduce more organic vegetables remained high, but low in terms of results due to restricted allocated budgets such as within school canteens. However, overall sales of organic/fairtrade vegetables grew over the review period, mainly triggered within retail.

• Increasing demand for healthy snacking and convenience led producers to innovate. The culture of the aperitif in France saw the emergence of ready-to-be-consumed vegetables on the plate. As a result, guests can pick up small vegetables while drinking an aperitif at the same time before dinner. In mid-April 2010 Prince de Bretagne launched a plate in the format of 500g made of up of three different types of vegetable. The objective was also to recruit new consumers such as youths. Convenience and ease of purchasing also enabled Savéol to offer ready-to-be-consumed cherry tomatoes.

PROSPECTS

• Sales of vegetables are forecast to increase at a CAGR of slightly less than 2% to 2015. The decline in hard discounters in favour of hypermarkets/supermarkets will enable sales of vegetables to grow as offers are expected to be wider thanks to investment in terms of communication through outlets. Producers should also invest in more selling points such as seasonality and limited editions of vegetables.

• Demand for vegetables should help vegetable consumption perform well over the forecast period. Awareness of eating healthily should have an impact on purchasing patterns as consumers should pay more attention to their health and physical appearance. Furthermore, producers should favour vegetable offers sold in baskets as a means for increasing consumption. Practicality in terms of packaging should help consumers to choose vegetables that are easy to carry and that match their eating habits.

• “Other vegetables” is expected to perform well over the forecast period. Young consumers are expected to be demanding sweet vegetables such as courgettes and aubergines. Furthermore, purchasing habits should be driven by growing demand for organic vegetables at a moderate pace. Convenience should also trigger sales of ready-to-cook vegetables.

• Tomatoes should carry on its good performance within retail and foodservice over the forecast period. Increasing consumption of tomatoes should be boosted by salad dishes mixed with cheese such as mozzarella. In terms of home-made meals, the French should show growing interest in more elaborate recipes as financial concerns are expected to remain high due to the recessionary climate. As a result, the French should be more demanding in terms of tastes, and favour old vegetables such as salsify, albeit with these remaining niche areas.

• Busy lifestyles could therefore limit positive growth of vegetables over the forecast period. Convenience in terms of meal preparation could favour growing demand for elaborate and ready meals in urban areas. Microwaveable meals including vegetables and meat could hamper positive growth of vegetables as consumers will look for meals with no need of preparation.

• The five fruits and vegetables a day campaign is expected to gain further popularity over the forecast period. Initiatives from producers and grocery retailers should boost consumption of vegetables as demand for healthy food is expected to grow. Healthy snacking and aperitifs should recruit and gain loyalty from new consumers, contributing to the predicted positive growth over the forecast period.

• That said, prolonged uncertainty in the economic climate could potentially hinder consumption of vegetables over the forecast period. The French could reduce frequency of shopping and therefore quantities purchased. Bad weather conditions could also restrict sales of vegetables due to lack of supplies and higher retail prices.