The flour market - France

In the French flour market post-2020, there has been a stabilization of national production at 3.96 million tonnes, yet with an increasing reliance on imports which outstripped exports (269,000 tonnes vs. 186,000 tonnes). The milling sector, adapting to shifts in consumer preferences, saw a heightened demand for specialty products such as organic, gluten-free, and artisanal breads, due in part to the containment period during the COVID-19 pandemic when flour sales soared (+135%). The market structure is highly concentrated, with a significant number of mills declining from 381 to 316 in 2022, led by large producers capturing over 65% of market sales.

The organic flour segment has experienced substantial growth, with production jumping from 87,000 tonnes to 155,000 tonnes in 2022, holding a 24% share of total flour expenditure. Nevertheless, fluctuating wheat prices, which peaked at €437 per tonne in May 2022 and later fell to €216 per tonne in December 2023, have posed challenges, leading to highly innovative strategies within the industry to differentiate and upscale offerings. Regulations have evolved with the flour tax initiated in 1962 being abolished, further shaping the competitive landscape.

Major players such as Francine (Vivescia) dominate certain segments like the one-kilogram flour market despite facing rising competition, and trends indicate a focus on domestic, quality, and environmentally responsible products.

Trends in the Flour Market in France

The French flour market is witnessing transformative changes, responding to various economic pressures, evolving consumer preferences, and market structures. France's milling sector, which is at the heart of the flour industry, has been grappling with a trade imbalance, with higher imports exceeding exports. In 2022, imports hit about 270,000 tonnes while exports hovered around 185,000 tonnes. A considerable bulk of these imports come from Germany, indicating France's reliance on external flour sources. Flour production in France has shown stability, with an output amounting to nearly 4 million tonnes, predominantly using locally sourced wheat.

Despite this production, France leans heavily on upscale flour imports for supermarket retail, illustrating the need for domestic innovation and adaption to market shifts. Bread consumption in France, which has been historically robust due to the nation's strong bread culture, is now on a downtrend with changes in dietary habits.

The demand for a plethora of bakery products, notably specialty, organic, and gluten-free options, has surged due to health and wellness trends. This shift reflects in the type and quality of flour demanded within the industry. The organic sector is also reshaping the landscape, with organic flour now accounting for nearly a quarter of the total flour expenditure. In light of the COVID-19 pandemic, consumer attitudes have pivoted more toward sustainable and ethically produced food options, propelling the organic flour segment forward despite financial headwinds.

From the production side, the French flour market is notably consolidated. The milling industry has reduced its number of units from above 380 to approximately 320, a decrease of around 17%, in 2022. A few leading players control a significant market share, with companies like Vivescia and Axéréal among the dominant names.

Consumer behavior during the COVID-19 lockdowns further exemplifies the evolving flour market. There was a notable spike in sales, with an increase of over 130% in one-kilo flour bags, as people began baking at home more frequently. Although after the lockdown, the sales growth returned to regular levels, the event emphasized the necessity for adaptive strategies in distribution and supply chain resilience. Concurrently, flour prices are closely tied to soft wheat prices, which have shown volatility influenced by international demands and market fluctuations. The pandemic seemed to have heightened consumers' focus on value, pushing priorities such as local sourcing, nutritional quality, and fair farmer compensation to the forefront of the flour production discourse. 

The Main Protagonists of France's Flour Market

The milling market in France, a fundamental segment of the country's venerable culinary tradition, is characterized by the presence of several key players who have shaped the narrative of flour production and distribution. These entities not only encapsulate the spirit of France's rich baking heritage but also reflect the dynamic nature of the market, adapting to the ever-evolving tastes and demands of the discerning French consumer.

• Vivescia stands out as a prominent cooperative group with its specialized subsidiary, Les Grands Moulins de Paris, spearheading operations. They have undeniably left an imprint on French kitchens with their iconic brand Francine, which has become a household name. Francine's ubiquitous presence is complemented by other esteemed product lines, including Campaillette and Copaine, which cater to various baking needs from domestic artisan bread to gourmet pastries.
• Axéréal, another cooperative giant, operates through subsidiaries like Axiane Meunier and Dijon Céréales Meunerie, boasting esteemed brands such as Banette, La Croquise, and Lemaire. Their product range showcases the cooperative's commitment to marrying tradition with innovation, delivering quality flour to bakers and households alike.
• The cooperative Terrena injects a dose of sustainability and authenticity into the milling market with Évélia, Moulins Centre Atlantique, and Grand Moulin de Ballan. Their brands l'Ami du Village, Melbio, and Festival des pains echo the cooperative's mission to connect consumers more closely with their food’s origins through initiatives like La Nouvelle Agriculture.
• Shifting focus from cooperatives to private groups, Soufflet emerges with a significant footprint through Les Moulins Soufflet. Their diverse brand offerings such as Baguépi, Mèlior, and Parisette signify Soufflet's deep-rooted expertise in milling, catering to both traditional tastes and modern preferences.
• Lastly, the private group Advens through its milling arm Advens Mills showcases innovation with its brands Banou and Mèlix. They provide shoppers and professionals with options that range from classic flour varieties to specialized blends suited for a wide range of culinary applications.

Altogether, these major players create a lively marketplace full of variety, quality, and tradition. They are the custodians of France's milling legacy, each contributing their distinct flavors to a rich tableau of French gastronomy. As diverse as their products may be, they

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 18/12/2023

Summary and extracts

List of charts

• Global cereal and wheat production
• The world's leading flour exporters
• The main outlets for flour in France
• French flour production
• Foreign trade balance for flour *
• Origin of French flour imports
• French flour exports
• Growth in volume purchases of commodities
• Average bread consumption in France
• Population of milling sector establishments
• Main players in the milling market
• Change in number of employees (Milling)
• Flour distribution channels
• Organic flour production
• Organic spending by product, in % (Average 2017-2020)
• French flour production structure
• Market share in value of the main flour brands
• Soft wheat prices in France
• Consumer price index (Flour and other cereals)
• France's favorite flour brand
• France's favorite flour brand by gender
• France's favourite flour brand by age