The potato market - France

The global potato market has been dynamic, with an anticipated compound annual growth rate (CAGR) of 3.5% from 2022-2027 as reported by the FAO. Despite a decrease in cultivated land from 19.35 million hectares to 16.49 million in 2020, production is on the rise, especially in South America, Asia, and Africa, showing increases of 25-27%. As of 2020, China, India, and Russia accounted for 40% of global production. In the European Union, Germany, Poland, and France lead the market, with the EU's potato sector generating 12 billion euros in 2020. 

However, the sector is challenged by rising import competition, an inflationary context affecting production costs, and regulatory changes, notably the EU ban on the use of the sprouting inhibitor CIPC. As for exports, France's potato trade has remained stable with a trade balance positive and a coverage rate close to 180% in 2020-2021, although exports slightly declined from $479 million to around $430 million in 2021. The war in Ukraine has created further uncertainty, with rising costs in energy and production inputs potentially impacting future market prices and production decisions.

Dynamics of Potato Demand in the French Market

France stands as a prominent player in the global potato market, with a diverse landscape regarding both production and consumption. Despite a general decline in consumption trends over the years, owing to dietary shifts toward more meat and pre-prepared meals, the French market for potatoes remains dynamic, in part due to a robust international export sector that absorbs nearly half of the national production. Within the country, potatoes find their way onto dinner plates and into various prepared dishes, both fresh and processed. The key segments within the potato industry include retail, processing, and the starch industry, each exhibiting its own growth patterns and innovations, particularly in pursuit of more sustainable farming practices and in response to regulatory changes. A significant development includes the EU's ban on CPIC, a chemical traditionally used for potato cultivation, which has necessitated the search for environmentally friendly alternatives.

Globally, the potato sector has been on an upsurge, projected to grow annually at approximately 3% to 3.5%. This growth momentum is lead by countries like China, India, and Russia, which together hold a substantial 40% share of the world market. Specifically, the production increases in Asia, South America, and Africa have been particularly notable, with increases ranging from 25% to 27%. France, meanwhile, retains a vital presence in the European market with over 53 million tons grown in 2020 and an impressive market share of 15.7%, tailing only behind Germany and Poland.

Domestic potato production in France tallies up to between 5 and 6 million tons annually, solidifying its stance as the second-largest producer in Western Europe. The vast majority of this production is centralized in the northern regions of France, namely Nord-Pas-de-Calais and Picardie. Additionally, revenues from this sector have shown a steady increase, rising from roughly 3.5 billion euros to almost 4 billion euros by 2020. Processed potatoes also play a significant part in the French market, with an ascending trend in turnover since the post-Covid-19 recovery phase.

A noteworthy point is that much of the processed potato consumption within France relies significantly on imports, with Netherlands being a notable supplier. On the export side, France remains a powerhouse, with a trade balance that has stayed predominantly positive. The value of French potato exports has averaged at around $430 million to $480 million annually over the past four years.

Key Players Shaping the Potato Market Landscape

As the potato market continues to grow and adapt to changing consumer preferences and economic pressures, certain key players emerge as significant influencers within the industry. These companies, with their unique strengths and strategic approaches, play a critical role in the production, distribution, and innovation of potato products both domestically in France and across the globe.

• McCain Foods stands out as one of the stalwarts in the potato market, particularly noted for its specialization in frozen potatoes. The Canadian giant has demonstrated its commitment to growth and sustainability by investing heavily in its production capabilities. This is evident in its decision to allocate substantial funds towards enhancing the production resources at its Béthune site, located in France. McCain's endeavors underscore its ambition to not only bolster its competitiveness within the French market but also to cater to the evolving demands of mass distribution chains.
  
  
• Bonduelle, another prominent figure in the potato sector, is a household name recognized for its array of processed vegetable products, including canned and frozen potato varieties. This French company has a substantial footprint in the retail sphere and is known for its quality produce favored by consumers.
  
  
• Intersnack marks its presence in the sector by catering to the taste buds of snack lovers through its salted snacks division, which includes a selection of potato-based products. The German company's strong position in the market illustrates the enduring popularity of potato chips and similar snack items, showcasing the diverse appeal of potatoes beyond their traditional culinary uses.
  
  
• Agrial and Eureden, subsidiaries of large agricultural cooperatives, also play a significant role in the market. Their extensive networks and resources enable these entities to source directly from farmers, ensuring that they provide high-quality potatoes to meet their customers' needs.

In contrast to these larger entities are the numerous small, independent artisanal producers dotting the French countryside. Despite their smaller scale, these producers contribute to the richness and diversity of the potato market. They often focus on regional varieties and traditional farming practices, appealing to consumers seeking local and authentically produced potato offerings. Beyond these notable companies, a range of other players, including traders, retailers, and foodservice departments, round out the market ecosystem.

Collectively, these actors work toward expanding the reach of French potatoes to international markets, particularly in dynamic regions like Southern Europe and neighboring Belgium. As consumer preferences continue to evolve and external factors such as global events influence market dynamics, these main players in the potato industry remain key to navigating the challenges and capitalizing on the opportunities that lie ahead.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 29/08/2022

Summary and extracts

List of charts

• Main potato producing countries
• World potato production
• Evolution of the number of hectares cultivated for potato production in the world
• Distribution of potato production in Europe
• Value of potato production at basic prices by the main producing Member States
• Estimation and evolution of the world potato market
• French potato production
• French potato production by region
• Evolution of the turnover of the potato processing and preservation market
• Evolution of the turnover of the French production
• Evolution in value of French potato imports and exports, and coverage rate
• Main supplier countries
• Main customer countries
• Potato purchases in recent weeks or months by age group
• Buyers of potatoes in the last 12 months by gender
• Potato buyers in the last 12 months by income
• Household consumption of processed potatoes
• Distribution of household purchases of processed potato products in 2020 (in value)
• Outlets for French potatoes
• Breakdown of Bonduelle's sales by distribution channel
• Average shipping price of different French potatoes
• Average annual retail prices in metropolitan France - Ware potatoes (1 kg)
• Average monthly retail prices in metropolitan France - Ware potatoes (1 kg)
• Main players in the potato market and their weight in France
• Potato production by category
• Purchasing criteria for potatoes in France
• How many potatoes do you usually buy in a single purchase?
• Which criterion is most important to you when choosing your potatoes, first and foremost?
• French people's opinion on the price of potatoes
• Appreciation of the potato by the French, in comparison with the leading consumer foods