The organic yogurt market - France

The global organic yogurt market, valued at US$9.6 billion in 2021, is a segment of the broader organic market that continues to grow, despite challenges such as higher prices compared to conventional yogurt and changing consumption patterns. The United States, Germany, and France remain leading markets, with a Compound Annual Growth Rate (CAGR) of 7.55% projected from 2021 to 2028. In France, however, the organic yogurt market has experienced a decline post-COVID, with sales dropping due to economic factors and a shift in eating habits, particularly among younger demographics who are forgoing traditional meals.

Despite this, the organic food sector in France has seen significant growth, with the market tripling in 2021. The typical French consumer of organic yogurt is often a 35-49-year-old woman in an upper socio-professional category. Supermarkets are the primary distribution channel for organic yogurt, holding dominance in both volume and value share, but specialized organic stores also play a role. Regulatory frameworks are strict for organic yogurts in both France and Europe, emphasizing organic ingredients and processes. The penetration rate of organic yogurt increased from 26.5% in 2016 to 37.4% in 2019, but has since seen a slight decrease. Market leaders include Danone and Yoplait, while specialized brands like Les 2 Vaches and Biocoop also contribute to the diversity of offerings in this segment.

Analyzing the Organic Yogurt Appetite in France: A Shift in Consumption Post-Covid

In recent years, organic yogurt has carved out a significant niche in the global market, flourishing particularly well in the French context before encountering post-COVID-19 challenges. Initially, the organic food trend swept through France with impressive growth, the organic yogurt market enjoying double-digit increases. This vigor began to wane. The decline became more acute following the pandemic, with several factors shaping the change in trajectory. One major trend in France's organic yogurt scene is the strong pull toward internationalization, with potential markets like China offering new frontiers.

French brands, both large conglomerates and private labels, are representing a highly fragmented market structure. Despite the market's diversification and a global estimate predicting a compound annual growth rate (CAGR) of between 7% and 8% from 2021 to 2028, the organic yogurt sector in France saw a contraction in growth directly linked to post-pandemic effects and rampant inflation escalating in 2022. The value sales of organic yogurt in France showcased substantial growth until a falloff post-2019, driven by high prices and evolving dietary habits among the youth, who are tending to skip traditional dessert courses.

With the French returning to out-of-home dining post-COVID, consumption of at-home products like yogurt declined. This shift coupled with the price discrepancies between organic and non-organic products, pressured the organic yogurt market causing its downturn. The consumption of organic food products in general remained on an upward trajectory, with the market size more than tripling between 2012 to 2021. Despite that, the year 2021 marked a slight deceleration in growth due to the end of confinements brought on by the global pandemic, affecting particularly the creamery products, including yogurt. The consumer base for organic yogurt is robust across various demographics, but the typical profile includes women between 35 and 49 years old, favoring upper socio-professional categories.

Interestingly, the penetration of organic yogurt in French domiciles depicted a significant rise from 26.5% to 37.4% before plateauing. Looking ahead, the challenge for France's organic yogurt industry lies in managing higher production costs while catering to a price-sensitive consumer base. With the average price of organic yogurt creeping upwards from around €2.80 to €3.10 per kilogram in 2021.

Key Contenders Shaping the Organic Yogurt Landscape

In the bustling and ever-evolving market of organic yogurt, several companies are distinguishing themselves as pivotal players, each contributing in their unique way to the sector's dynamics. Their influence spans from multinational corporations to specialized stores, indicating the vast expanse and layered structure of the market.

The Giants: Diverse Portfolios and Wide Reach

At the forefront are the behemoths like Danone and Yoplait, which have long-established roots in dairy and have successfully carved out their spots in the organic segment. These corporations have adapted to the organic movement by infusing their lines with organically sourced products while leveraging their far-reaching distribution networks to penetrate various markets.

• Additionally, large retail chains such as Carrefour, Auchan, and Leclerc have introduced their private label organic yogurt offerings. These retailers benefit from extensive store networks and customer bases, facilitating the integration of organic options into the regular shopping habits of consumers.

Monoprix follows suit with its own range of organic products, catering to a more urban and perhaps health-conscious demographic.

The Specialists: Authenticity and Customization On a different note, companies like

• Les 2 Vaches—part of the Danone group—specifically emphasize small-batch production and organic sourcing, which attracts consumers looking for authentic and sustainably produced yogurt. They bring to the table a narrative of credibility and dedication to organic principles, enticing a niche segment of the market.
• Organic retailer Naturalia and cooperative Biocoop are critical to the fabric of the specialized organic market, offering a curated selection of organic yogurts alongside other organic goods. Their appeal lies in the promise of providing a comprehensive organic shopping experience, fortified by trust and a sense of community.
• Lastly, relatively newer and smaller entities like Bio & Lo have entered the playing field. They might not rival the giants in scale, but they significantly contribute to market diversity, often inspiring larger players to innovate and remain competitive.

A market of giants and champions In essence, these players, both giants and specialists, constitute a broad spectrum of offerings that not only satiate the current demand for organic yogurt but also stimulate its growth through their distinct approaches and varied positioning. Whether through scale, specificity, or a mix of both, these companies are essential in crafting the story of the organic yogurt market as it stands today and as it unfolds into the future.

Inforamtion

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

Summary and extracts

List of charts

• The global organic yogurt market
• French organic yogurt market
• Sales of organic food products
• Organic food market trends
• Why do you eat local organic food?
• Proportion of people consuming at least one organic yogurt per month, by gender
• Proportion of people consuming at least one organic yoghurt per month, by age category
• Proportion of people consuming at least one organic yogurt per month, by socio-professional category (SPC)
• Production volumes of traditional and organic yogurts
• Number of establishments processing organic or traditional milk into yoghurt
• Average price per kg of organic and traditional yogurt
• Yogurt price index
• Average purchase price of organic yogurt by channel
• Organic yogurt penetration rate
• Main places of purchase for organic yogurts
• Volume share of organic yogurt distribution channels
• Share of organic yogurt distribution channels by value