The butter market - France

As of 2020, the French butter market has depicted signs of recovery following previous volatilities due to factors like the abolition of EU dairy quotas and adverse weather conditions influencing milk production costs. Despite a slight downturn in 2020, butter production soared to sales of over €1.3 billion by May 2023, marking a decade high. The sector has navigated through the impacts of the COVID-19 pandemic without major disruptions, evident from the relatively stable revenue indexes. Internationally, while butter imports and exports are rebounding post-pandemic, they have not returned to pre-crisis levels, with a 2022 coverage rate of 0.44 and imports totaling $1,361 million against exports of $604 million.

Butter prices have been subject to inflation, especially between January and April 2023, seeing a 23.6% price increase. By 2022, the price per kilo of butter surged past €8.83, reflecting more than a 10% hike from the previous year.

French consumers demonstrate significant regional preferences and the butter market is characterized by a high concentration with 12 companies, with Lactalis and Savencia-Bongrain as key players, dominating the landscape.

French Butter Market: Current Trends and Consumer Patterns

In France, a nation known for its culinary excellence, butter is both a traditional and essential ingredient, with the country holding the title of the world's leading butter consumer at approximately 8 kilograms per person annually. Despite this, recent years have shown a decline in butter consumption, particularly in non-organic variants, pointing towards a shift in dietary preferences. Organic butter, on the other hand, has seen its popularity rise significantly, with an increase of almost 80% in penetration rate. Butter purchases in France reveal a certain degree of geographic disparity, with the western regions, including the culturally rich Brittany, showing higher than average consumption rates, possibly due to regional culinary habits like the famed Breton crêpes. The Paris region also accounts for a significant portion of butter purchases, a trend potentially attributable to the high population density. In terms of socioeconomic factors, the lower-middle class, constituting a large proportion of the population, is the primary purchaser of butter, accounting for between 40% and 45% of total volume purchases.

Following close behind are the upper middle class consumers, who make up roughly 30% of butter purchases. Interestingly, as the age of the person responsible for grocery shopping increases, so does the volume of butter bought, particularly among those over 65. Despite France's high per capita consumption, the butter market has faced considerable uncertainty and volatility. The country's dairy farmers have been under pressure due to variable factors such as weather conditions, competition, and market regulatory changes such as the abolition of EU milk quotas. These factors contributed to major market fluctuations, including the notorious price hike , where the price per tonne of butter jumped from between 2,400 and 2,600 euros to between 6,900 and 7,100 euros. However, this did not result in a direct increase in retail prices due to legislative constraints on price negotiations between suppliers and distributors.

A notable consumer trend is the gradual shift towards healthier and premium butter options. An increasing number of households are opting for organic or low-fat alternatives, which appeal due to their health benefits and lower cost compared to traditional butter. This trend is especially pronounced with the rise in "low-fat butter" sales, which might soon play a pivotal role in shaping demand. Interestingly, when searching for "Butter" through online platforms, interest in the product appears to be seasonal, peaking around the Christmas period. 

Key Players in the French Butter Market: A Landscape of Tradition and Innovation

The French butter market is characterized by a blend of longstanding tradition and modern innovation, with key players shaping the industry's landscape.

Among these, two family-owned groups, Lactalis and Savencia-Bongrain, dominate the dairy market with a substantial portion of market share, thanks to their widely recognized sub-brands and commitment to quality.

• Lactalis stands as a giant with its President and Bridel brands. Founded by the Besnier family, Lactalis has established itself through a combination of artisanal techniques and global distribution, resulting in widespread consumer recognition and trust. The group's extensive range also includes a firm presence in the low-fat butter segment.
  
  
• Savencia-Bongrain is another significant entity, closely held by the Bongrain family. With the strategic acquisition of Elvir, Savencia has fortified its place in the market. Its presence is felt both in traditional butter offerings as well as in the specialized segment of low-fat butter, where it maintains a leadership position. 

Aside from these two behemoths, several major dairy cooperatives contribute to the market's richness and diversity :

• Eurial, with its Grand Fermage brand, focuses on producing a variety of premium butter products from the finest milk of the cooperative's farms, ensuring excellence and rich flavor profiles in every pat.
  
  
• Laïta, under the Paysan Breton brand, offers a range of high-quality dairy products including butter that celebrates the region's heritage and commitment to natural, simple ingredients without artificial additives.
  
  
• Isigny-Sainte-Mère is renowned for its Beurre d'Isigny PDO (Protected Designation of Origin), a label that guarantees consumers are getting butter made from the milk of cows grazing in the lush landscapes of Normandy, reflecting the unique terroir in its taste.
  
  
• Celia operates with its lineup of brands like Le Marin and Chaussée aux Moines, catering to a variety of consumer preferences and emphasizing the company's roots in regional dairy craftsmanship.

The synergy of these players creates a robust and dynamic butter market in France. Together, they honor the rich culinary culture while embracing innovative approaches to meet the evolving tastes and needs of consumers both in France and abroad. This landscape paints a picture of a market that's both grounded in tradition and reaching towards the future, much like the layers of flavor in the very butter they produce.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 02/11/2023

Summary and extracts

List of charts

• World butter market size
• Per capita butter consumption
• Butter manufacturing sales (domestic and export markets)
• The impact of Covid-19 on the butter market (NAF 10.51B)
• Foreign trade in butter
• Main destinations for butter exports
• Main countries of origin of butter imports
• Breakdown of butter purchases in volume by region
• Breakdown of butter purchases in volume by income class
• Breakdown of butter purchases by age of person responsible for purchases
• Penetration rate of different types of butter
• Structure of the total purchase value of solid fats
• Search interest for the term "Butter
• Average household expenditure on butter
• Comparison of butter and "low-fat butter" prices
• Comparison of butter and margarine prices
• Number of companies and employees in the butter manufacturing sector (NAF 10.51B)
• Butter production, by value and volume
• Average farmgate butter prices (industrial bulk)
• Butter sales by distribution channel
• Butter brands by number of consumers
• Number of butter consumers by private label
• Butter manufacturers' market share by volume
• Change in the consumer price index for butter
• Consumer price growth for the seven products most affected by inflation
• Butter price per kg
• France's favourite butter brands
• Comparison of the level of appreciation of 3 butter brands according to respondent region
• Comparison of the appreciation rate of 4 butter brands according to SPC