The poultry market - France

The European poultry market has experienced slow growth in recent years, with the EU producing 13.4 tons of poultry in 2020, a decrease of 1.3 tons. France, a major consumer, reported an intake of 1.88 million tons, ranking just behind the UK and Germany. Despite fluctuations, the industry is tightly regulated, prioritizing animal welfare with directives and laws such as the Egalim law aimed at balancing the forces between market players. The French market is marked by the dominance of a few entities like LDC and Duc, with supermarkets and hypermarkets being primary distribution channels.

A notable trend is the French market's orientation towards high-end poultry (red label and organic), with red label chicken sales rising by 10% and organic by 6% in 2021 compared to 2020. The impact of COVID-19 resulted in a 0.1% increase in French poultry consumption in 2020, with chicken and turkey purchases up by 11.1% and 2.8%, respectively, reflecting shifts in consumption patterns due to the pandemic.

However, French poultry production declined by 1.6% in 2020, and the country has become a net importer, facing a trade deficit with European neighbors. Costs of raw materials like wheat, barley, corn, and soybean meal saw significant increases, heightening production expenses and affecting market pricing. Despite challenges, the market is poised for recovery, with supermarkets maintaining a significant margin and influencing final consumer prices.

Dynamics and Preferences Shaping the French Poultry Market

Over the past years, the French poultry market has seen various fluctuations, with a marked consumer trend towards white meats, particularly poultry. Despite a slight decline in overall meat consumption, white meat, especially poultry, has managed to secure steady demand. Notably, poultry consumption has been on an upward trajectory, climbing from an average of 23.5 kg per person to approximately 27.5 kg per person in 2020, reflecting a growing preference amongst the French populace.

The French market, known for its diversity in poultry products, offers everything from processed and cut poultry to whole poultry choices. Processed poultry, valued for its convenience, has maintained a strong market presence, with cut poultry being the most purchased form. Whole poultry, once the consumer favorite in the 90s, has seen a decline in demand, positioning itself behind its processed and cut counterparts. It is worth noting a significant consumer shift toward organic and high-quality poultry products.

The French demonstrate a growing concern for health, taste, and environmental impacts, driving an increase in organic poultry consumption—even though it represents a niche segment in the market. Remarkably, France has emerged as a leading producer of free-range poultry while experiencing a doubling in organic chicken production between 2009 and 2019. As the poultry sector faces a challenging economic climate due to surges in raw material costs, its market structure remains complex. On one hand, a handful of major groups dominate the industry, exercising influence over market prices and trends. On the other, French poultry farming has witnessed a steady number in culls over the last decade and a diverse distribution network, with larger retailers playing a pivotal role in the sale of poultry meat.

Internationally, France grapples with a trade balance that has shifted into deficit. Imports, largely sourced from neighboring European countries, have outstripped exports, leading to a deficit amounting to between 300 and 350 million euros. Belgium, Poland, the Netherlands, and Germany stand out as the largest exporters of poultry to the French market. The advent of the COVID-19 pandemic has further complicated the market dynamics. Containment measures have led to a notable increase in supermarket poultry purchases while impairing the consumption of poultry outside the home.

The French have demonstrated a tendency to prioritize affordable meat with high protein content, resulting in an 11% rise in poultry consumption in supermarkets, predominantly driven by chicken and turkey. However, the pandemic has also.

Key Players Shaping the French Poultry Market

The French poultry market encompasses a range of participants, from breeders to distributors, each playing a critical role in sustaining the market's dynamics.

• Among the noteworthy breeding enterprises is Eureden, a significant player that emphasizes sustainable farming practices and vertical integration.
• With a focus on innovation, The Gouessant Cooperative stands out for its livestock nutrition solutions and animal feed production.
• Terrena, another giant in the realm of breeding, takes a cooperative approach to address both the agricultural and food industry sectors comprehensively.
• Nutréa finds its place in the poultry niche as a subsidiary of Triskalia, offering a diverse spectrum of poultry products and services.
• LDC, known for its expansive presence, operates across multiple segments including breeding, slaughtering, and processing, ensuring a significant impact on the national and international poultry markets.

Distribution of poultry products is equally controlled by leading outlets such as Auchan, Carrefour, and Intermarché. Auchan, with its vast network of hypermarkets, ensures poultry products reach a large consumer base effectively. Carrefour, synonymous with retail innovation, has an extensive selection of poultry offerings catering to a wide range of preferences, while Intermarché combines convenience and quality, providing consumers access to a rich assortment of poultry meats.

These entities collectively contribute to the robust framework of the French poultry market, from ensuring quality breeding standards to the efficient distribution of poultry goods, shaping consumer experiences and market trends.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 05/11/2021

Summary and extracts

List of charts

• Share of poultry producing countries in Europe
• Poultry consumption of a European
• Segmentation of the poultry consumption market
• Evolution of the price composition of a standard whole chicken in supermarkets
• Annual composition of the annual retail price of poultry in supermarkets
• Poultry slaughter in France
• Net change in the number of "standard and certified" poultry
• Share of poultry meat purchases, by value
• Evolution of feed prices for poultry meat
• Evolution of meat consumption
• Distribution of chicken quality type
• Segmentation of the chicken market demand
• Distribution of the number of consumers of organic meat
• Breakdown of the reasons why the French consume organic food
• Market share of the main players in the HM/SM/HD Halal charcuterie segment
• Production, exports and imports of poultry in France
• Sales of self-service poultry in supermarkets
• Trade balance of the poultry market in France
• Breakdown of French poultry imports from foreign countries
• Breakdown of French poultry exports to foreign countries
• Sales index for fast-food outlets (impact of Covid-19)
• Growth in poultry meat purchases compared to 2019