The milk market - France

The global dairy products market, valued at €827.89 billion in 2022, is experiencing growth with an expected CAGR of 6.40% leading up to 2030, indicating a dynamic industry. The French market parallels this trend, witnessing a value increase in sales from €15.83 billion in 2018 to €18.50 billion in 2022 despite a modest 1.83% drop in milk volume sales between 2018 and 2022. Consumption patterns show that packaged milk, ultra-fresh products, and cheese dominate with annual average consumptions of 76.4 liters, 58.2 kg, and 29.2 kg per inhabitant respectively. French foreign trade of dairy products has also seen growth, with exports climbing from €6.94 billion in 2018 to €8.87 billion in 2022. However, imports saw an even greater increase, from €4.02 billion in 2018 to €5.86 billion in 2022, resulting in a slight decrease in the trade coverage ratio from 172.64% to 151.37%.

Notably, since 2020, there has been a decline in demand for organic dairy products, demonstrated by a consecutive annual fall in organic milk and yogurt purchases after 2018, by as much as -11% and -7% respectively. This indicates a shift in consumer preference, possibly due to the high cost of organic products and a crisis of confidence in the organic label, exacerbated by current inflation. Despite these challenges, the industry has shown adaptability with the introduction of plant-based alternatives and lactose-free products, witnessing a 5% increase in sales of plant-based yogurts from 2020 to 2022.

Navigating the Flux: Trends in Dairy Consumption in France

In recent years, the French dairy market has undergone a series of shifts reflective of broader global trends as well as specific national regulatory changes. While the overall value of dairy product sales witnessed an upward surge reaching approximately between €15 and €20 billion between 2018 and 2022, the volume of milk sales saw a slight dip of nearly 2% in the same timeframe. This signals a scenario where price hikes in the dairy sector are perhaps outpacing the physical volume of products consumed by the population.

Despite these fluctuations, the French remain steadfast consumers of dairy, with packaged milk leading the ranks at an average annual per capita consumption of between 70 and 80 liters. Not far behind, ultra-fresh dairy products and cheese claim their spots with average consumptions of approximately between 50 and 60 kg, and between 25 and 30 kg per capita per year respectively.

However, the market for organic dairy has not shared this robust performance. A notable decline was seen in organic product sales volume across the board, with a drop ranging from around 5% to over 15% when looking at year-on-year comparisons. Organic dairy items like animal milk and yogurts, though holding market shares ranging from approximately 4% to 9%, have seen a sharp fall in purchases between 2016 and 2022.

The French consumer preferences in terms of dairy brands shine a spotlight on the diversity within the market, with market leaders like La Laitière in yogurts, Président in butter, and Boursin in cheese reflecting an approval rating over 70%. However, for milk, the competition is closer with Lactel leading slightly ahead of Candia in terms of consumer preference.

The abolition of milk quotas in 2015 was a significant turning point in the industry, leading to increased milk production but also intensifying competition, impacting prices, and prompting farmers to consolidate for greater market influence. Meanwhile, the 2018 Egalim Law aimed to improve farmers' remunerations, which in turn led to a notable 10% rise in the value of contracts in downstream price negotiations.

In a market that prides itself on both tradition and innovation, dairy producers are increasingly embracing diversification to cater to a changing consumer base. Plant-based alternatives, such as yogurts, have seen growth, albeit moderate, indicating an evolving palate among French consumers.

Key Dairy Industry Stalwarts Shaping the French Dairy Landscape

The French dairy market is a vibrant sector characterized by a handful of dominant players that have etched their names into the culinary fabric of the country. These companies exert significant influence over the market through a diverse array of products that cater to both traditional tastes and modern, health-conscious preferences.

Lactalis: Envisioned as the titan of the cheese kingdom, Lactalis sits atop the hierarchy of dairy producers. With an impressive arsenal that spans across fluid milk, fresh products, and cheeses, they have cemented their status as a private group powerhouse. Their brand resonates with quality and tradition, serving as a standard in households and fine dining establishments alike.

Danone: A name synonymous with health and wellness, Danone is more than just a food brand; it's a manifesto of lifestyle choices promoting nutritious and balanced eating. Their portfolio, enriched with fluid milk and a wide range of fresh dairy products, reflects a dedication to nourishment and a better life through food. As a private entity, Danone continues to innovate while staying true to its mission of bringing health through food to as many people as possible.

Savencia: Renowned for their gourmet touch in the dairy domain, Savencia is not just a producer; they are purveyors of fine taste. Their expertise straddles across milk, fresh products, and a delightful selection of cheeses, underlining their commitment to taste and a sensory experience. As a private group, Savencia stands out for their distinct products that grace the tables of those with a penchant for finely crafted dairy delights.

Sodiaal: A cooperative group that personifies the unity of farmers and the value of collective effort. As a key player in the industry, Sodiaal offers a spectrum of products, including fluid milk, fresh items, and cheeses that embody the rich dairy heritage of France. Their cooperative model emphasizes the importance of fair remuneration for farmers and a sustainable approach to dairy production.

Together, these market leaders not only provide a significant portion of the French dairy intake but also play pivotal roles in shaping consumer preferences and setting industry standards. They are the sentinels and innovators of dairy in France, navigating the delicate balance between tradition and modernity, quality and variety, to serve the ever-evolving palates of their customers.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 08/04/2024

Summary and extracts

List of charts

• World milk production by country
• Sales trend
• Sales of milk by value
• Sales volume of milk
• Trends in the size of the dairy products market
• Breakdown of milk purchases in volume by region
• Breakdown of milk purchases by household income class
• Breakdown of milk purchases by age of person responsible for purchases
• Breakdown of milk purchases by consumer life cycle
• Balance of trade in dairy products
• France's main customers for dairy products
• France's main suppliers of dairy products
• Amplitude des prix constatés pour le lait végétal sur un site distributeur, selon la marque
• Prix moyen du lait payé au producteur en France
• Dairy products evaluated according to several criteria
• Per capita consumption of dairy products per year
• Favorite yogurt brands
• France's favorite butter brands
• France's favorite cheese brands
• France's favourite milk brands
• France's favourite cream brands
• Sales volume of organic products in total FLS FMCG vs N-1
• Trend in yogurt purchases
• Dairy products market share by volume
• Change in milk purchases
• Growth in sales of plant-based yogurts
• Value sales of high-protein yogurts
• Market share of the top three manufacturers of plant-based ultra-fresh products
• Annual consumer prices for packaged milk
• Annual consumer price trends for butter
• Sales of French dairy market leaders
• Breakdown of sales volumes by distribution channel
• Breakdown of sales by volume in the generalist distribution channel
• Growth in the number of establishments producing dairy products
• Change in the number of registered employees in dairy production
• Cow's milk collection
• Dairy cow herd
• Trends in the manufacture of the main dairy products