The cheese market and cheese dairies - France

Processed cheese has a longer shelf life than natural cheese in cheese shops and supermarkets. With nearly 400 types listed, France is the country of cheese par excellence in the world. Cheese manufacturing is a concentrated sector dominated by a handful of players, such as Bel or Entremont for example (1/3 of the French cheese market). The other major players in the market are either family-owned groups (Bongrain specializing in milk processing), cooperative groups, or dairy producers such as Lactalis. The French are among the leading consumers of cheese in the world with more than 25 kg/inhabitant per year. The development of mass distribution to the detriment of local shops has weakened the artisanal products sold in local cheese factories and the majority of the cheese marketed is now industrially produced. This has favored the emergence of new players such as Carrefour in the distribution and production of private label cheese. The harmonization of sanitary rules imposed by Brussels is also a boon for industrial cheese. In terms of foreign trade, the French trade balance is positive, the Hexagon exports in 2021 1.6 times more than it imports cheese. Its main export customers are Germany with 23% of total French exports, then Belgium (14%) and the United Kingdom (8%). However, the volatility of world prices for industrial dairy products weakens the profitability of manufacturers: to counter these economic hazards and gain market share manufacturers rely on innovation (new formats, packaging) and communication (huge advertising budgets).