The ham market - France

Since 2020, the ham market, as an integral part of the charcuterie market, has demonstrated various trends and faced challenges. Notably, it has experienced a decline, with cooked ham segments like superior, label, and York forming a majority of the market at 64.03% in 2018 and showing a tendency for decreased meat consumption in France overall. The French ham market is primarily dominated by a few foreign food groups, cooperatives, and family businesses, with Fleury-Michon and Herta leading in market share.

The market has been influenced by consumer demands for natural and health-conscious products, impacting sales of traditional products like Bayonne ham. The import of ham, particularly from Spain and Italy, has also been significant, with imports roughly double that of exports, indicating strong foreign competition. Additionally, the industry has seen efforts to adapt to new consumption patterns, with manufacturers investing in nitrite reduction and the industry grappling with employment concentration in SMEs.

Regulatory standards, such as the "Hygiene Package" from the EU, continue to shape the market, and the sector remains watchful of the impacts from the Egalim law aimed at rebalancing producer-distributor negotiations. Despite these challenges, the global charcuterie market, which encompasses ham, is expected to grow strongly in the coming years due to factors like demand for convenient, packaged foods and higher protein diets.

Trends and Dynamics of the Ham Market in France

The ham market in France is experiencing significant shifts in demand and consumption patterns as consumers increasingly prioritize the origin and health impact of their food products. Amidst these changes, the market for charcuterie, which includes ham, has shown a general sluggish growth, but with the ham segment specifically witnessing a decline. For instance, the charcuterie market saw a modest increase of 1.1%, yet the ham market in that same year fell by 3.3%.

Despite the downtrend, the French market still showed a preference for certain types of ham, such as those aligned with natural and healthy product demands. However, foreign products, notably Spanish hams like those with the Guijuelo PDO designation, have surged in popularity due to their methods of production that appeal to the new consumer preferences. Importantly, these changing tastes are reflected in the broader meat consumption trends observed in France.

Meat consumption peaked in the late 1990s, with an average annual consumption of around 90 to 95 kilograms per person, only to see a gradual decline in more recent years. Reflecting a more health-conscious society, the intake of meat has been reported to drop by around 10 to 15 percent over the last decade, with daily meat consumption decreasing by more than 50 grams since 1998. This trend is despite the fact that pork remains the most consumed meat. The decline is apparent even in charcuterie products whose consumption rate has also faltered, with a drop of approximately 15 to 20 percent over a couple of years.

New consumption patterns are emerging with around 25 to 30 percent of French households identifying as flexitarian, seeking to reduce their meat intake and substitute animal protein with other foods. This shift is influencing the market structure and positioning of key players in the ham market. Dominated by major foreign food groups and cooperatives, as well as family businesses, the market sees little room for new entrants. Leading brands like Herta and Fleury-Michon, along with foreign names such as Aosta from the Campofrio Food Group, are tasked with adjusting their strategies to this new consumer landscape. In light of the declining domestic demand, it's important to also note the importance of foreign trade within the ham market.

France reports significantly higher imports as compared to its exports, with a coverage rate of just over 50 percent, indicating that imports are about twice as high as exports. Spain, Germany, and Italy are.

Dominant Forces in the Ham Market Landscape

Within the dynamic and competitive ham market in France, certain enterprises have carved out significant niches for themselves, contributing to the shaping of the industry's current structure. These actors command attention not only because of their market share but also due to their efforts in adapting to changing consumer demands and regulatory standards.

• Fleury Michon stands at the forefront of the market, slightly edging past its competition with a 21.8% market share. This success is attributed to the company's focus on offering a diverse range of deli meats, which align with consumer preferences for healthier options. Fleury Michon's commitment to quality and consumer health is reflected in its innovations, particularly in the realm of nitrite-free products.
• Herta, another vital player and a subsidiary of Nestlé France, closely follows with a 21.6% market share in value. Although slightly trailing behind Fleury Michon in terms of market share, Herta leads in volume, holding a 17.5% stake. Famed for its variety of charcuterie and ready-to-eat meals, Herta has found success by banking on consumer convenience and a strong brand reputation.
• Aoste, a French subsidiary of Campofrio Food Group, showcases its dominance in the raw ham segment, ruling with a 21% market share in value as of January 2019. Aosta's traction is likely fueled by its wide array of cured meats that appeal to consumers seeking authentic flavors and artisanal quality.
• Other relevant actors include Bigard SA, known for its Charal brand, which has established itself both in the world of fresh meats and the charcuterie sub-sector. Their processed meats leverage the strong brand identity of Charal, resonating with consumers who prioritize brand reliability. Carrefour SA, a prominent supermarket chain, and
• Casino, another well-known retailer, offer their private label products that give buyers an economical alternative to name-brand meats without compromising on quality. As consumer prices are a critical factor, these supermarket chains wield substantial influence in shaping market trends and demands.
• Lastly, amid the scares of a potential "ham cartel" that could suggest price-fixing activities among industry players, organizations like Campofrio Food and the Coop group have responded by engaging in leniency proceedings, potentially indicating their willingness to cooperate and recalibrate if necessary.

In sum, the ham market in France is a tight oligopoly. 

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 07/10/2020

Summary and extracts

List of charts

• Size of the global ham and bacon market
• Size of the ham market in France
• Breakdown of ham sales (value)
• Ham trade balance
• Foreign trade in ham by segment
• Main supplier countries
• Main customer countries
• Average annual meat consumption per capita
• Breakdown of average per capita consumption by volume, by type of meat
• The desire to reduce animal protein consumption in favor of greater environmental and taste quality of products
• Average annual pork consumption per capita
• Breakdown of market share for various charcuterie products
• National consumption of charcuterie
• Penetration rate of charcuterie
• Ham penetration rate
• Breakdown of ham consumption by volume, by region
• Breakdown of ham consumption by volume, by income class
• Breakdown of ham consumption by volume, by age of person responsible for purchases
• Breakdown of consumption by volume of ham by life cycle
• Market shares of the various players (in value)
• Market shares of the various players (in volume)
• Charcuterie sales index
• Packaging modes
• Number of charcuterie establishments
• Charcuterie industry workforce
• Distribution channels (volume)
• Breakdown of different distribution channels (in value)
• Average prices by distribution channel
• Composition of the average price of cooked ham
• Frequency of organic meat consumption
• Reasons to eat organic meat
• The perceived legitimacy of selling organic meat at a higher price than non-organic meat
• Share of cured ham distribution channels by volume
• Share of cured ham distribution channels by value
• Average purchase price of cured ham by distribution channel
• Ham imports from Spain