The organic fruits and vegetables market - France

1.2 A booming global market

The Research Institute of Organic Agriculture (***) published the **ᵉ edition of"The World of Organic Agriculture" study in ****. This study gives us an overview of the global organic farming market, within which fruit and vegetables occupy a significant share.

In ****, the global organic farming market will amount to ***.* billion euros, an increase of *.* percentage points compared to ****. In addition, the average annual growth rate (***).

Share of national markets by sales value World, ****, in Source: ****

The report also shows that the number of producers rose by *.*% between **** and ****, to *.* million. This figure had already risen by **% between **** and ****. In ****, these producers were spread across *** countries, compared with *** in ****. The countries with the most producers are India with *.*** million, followed by Uganda with ***,*** and Ethiopia with ***,***. It is interesting to note that these countries do not coincide with the continents with the largest agricultural area dedicated to organic farming, as the graph below shows.

Distribution of organic farmland by continent World, ****, in Source: ****

In addition, from **** to ****, Oceania saw the biggest increase in organic farmland, with an increase of ***%. Europe saw a **% increase, while North America saw a **% increase over the same period[***].

Australia is by far the country with the largest organic acreage, ...

1.3 The French market: a leading market that is slowing down

As mentioned in the world section, (***), confirming the market decline set in motion in **** after continuous growth since its inception [***].

Within organic food, the market share of organic fruit and vegetables was **.*% in ****[***]. This is the second-largest organic market behind groceries (***). As a result, the fruit and vegetable market is estimated to be worth *.*** billion euros in ****, representing a *.*% decline on ****.

Market size for organic fruit and vegetables in France France, **** - ****, in € millions Source: ****

Sales of organic fruit have fallen particularly sharply compared with **** (***). However, the number of producers and the surface area devoted to organic farming continues to grow.

1.4 The European Union: a privileged trading partner

French production accounts for the largest share of French organic vegetable supplies (***).

French supplies of organic vegetables France, ****, € million Source: ****

For fruit, on the other hand, while France (***). This can be explained by the presence of exotic fruit in French consumption habits.

French supplies of organic fruit France, ****, € million Source: ****

However, French imports of organic fruit and vegetables have been declining since ****.

evolution of French fruit and vegetable imports France, **** - ****, in € million Source: ****

France exports much less than it imports, selling mainly to European Union countries.

French exports of organic vegetables France, ****, € million Source: ****

French exports of organic fruit France, ****, € million Source: ****

French exports of organic fruit are more than twice as high in value as exports of vegetables.

evolution of French organic fruit and vegetable exports France, **** - ****, € million Source: ****

Exports have been rising steadily for several years, especially those of fruit. In ****, the trade balance was negative at -*** million euros.

2.1 Growing demand for organic products in France

Agence Bio reports on a survey of French consumers of organic produce. This survey, which we'll use throughout this section, concerns all organic products, but it shows that **% of regular organic consumers (***) consume organic fruit and vegetables, so the more general results of this survey, reported here, remain very good indicators for understanding organic fruit and vegetable consumers[***].

What emerges is that the French are consuming less and less organic produce : only **% say they have eaten organic produce at least once a month over the past year, which is ** percentage points less than in ****.

Consumers of organic products in the last ** months France, **** - ****, in % Source: ****

The proportion of people who have not consumed an organic product all year has almost doubled compared to the previous year, reaching **% in ****.

However, there has been an increase in consumption among regular consumers of organic products: almost a quarter of these consumers estimate the proportion of organic products in their diet at over **%, which represents ** percentage points more than in ****.

**% of those questioned said they had changed their eating habits in the past year. However, only **% claim to have bought more organic products.

How have you changed your eating habits? France, ****, in Source: ...

2.2 Representation of organic products

Organic food is still not universally accepted, either in terms of price or quality.

Do you find it normal that an organic product should cost more than a non-organic one? France, ****, in Source: ****

We can see that **% of consumers questioned find it abnormal that an organic product is more expensive than a non-organic product. Furthermore, **% think that the "organic" label is mainly used to justify higher prices, and **% think that organic is mainly marketing.

As far as the quality of organic products is concerned, there is a consensus, but it is less shared than before. Indeed, **% of those questioned believe that organic farming helps to preserve the environment, soil quality and water resources, including **% who said they "Totally agree" with this statement, whereas this proportion stood at **% in ****. **% believe that organic products are more natural, as they are grown without synthetic chemicals, and **% think that organic farming promotes biodiversity.

The positive effect of organic products on health is recognized by a large proportion of consumers. Indeed, **% of consumers surveyed believe that organic products are better for their health, including **% who strongly agree, compared to **% in ****.

However, consumers are less unanimous about taste: **% think that organic products taste better, and **% think that ...

2.3 Motivations and barriers to organic consumption

The survey also reveals the main reasons why regular consumers of organic products start buying them. The positive impact on health (***).

What was the main reason that led you to consume organic products in the first place? France, ****, in % Source: ****

An interesting motivation to note that concerns **% of survey respondents is the fact that organic products are often more available in their usual grocery store than non-organic products. Indeed, one of the advantages of organic products in short circuits is that they are rarely out of stock in the places where they are sold.

The reasons why regular organic consumers continue to buy organic are the same, but in a slightly different order.

Today, what are all the reasons that encourage you to consume organic products? France, ****, in % Source: ****

Furthermore, **% of respondents say that price is their main criterion for choosing food products. given that **% find it unjustified that organic products should be more expensive than conventional products (***), price represents a barrier to the consumption of organic products for a large proportion of the population.

Why don't you eat organic products? France, ****, in Source: ****

Price and lack of confidence are the main obstacles to the consumption of organic products.

2.4 Preferred consumption locations and the future of consumption

The survey asks organic consumers where they prefer to buy their products, by category. For fruit and vegetables, the preferred places of purchase are supermarkets and markets. We can see that there are few disparities between fruit and vegetables.

Where do you mainly buy organic fresh fruit and vegetables? France, ****, as % of total Source: ****

**% of respondents expect to consume more organic produce than in the previous year, while **% expect to buy less.

How do you see your consumption of organic products evolving over the next * months? France, ****, in Source: ****

How do you see your consumption of organic products evolving over the next * months? France, ****, in Source: ****

Regular consumers of organic products therefore intend to maintain or increase their consumption of organic products more than all consumers surveyed. However, it is interesting to note that the same proportion plan to reduce their consumption of organic products.

2.5 Typical profiles

According to theAgence Bio report, five consumer profiles stand out:

The hesitant (***): although these individuals consume little organic produce, they nevertheless have a positive image of organic farming. However, they are not particularly attentive to the effects of food on health, and are not actively involved in the dietary transition. They share the common French view that organic is mainly a marketing strategy used to justify higher prices. The convinced (***): organic consumers are particularly attentive to the effects of food on health, and pay close attention to the labelling on food products. They have a very good image of organic food and have a high level of confidence in it, demonstrating their commitment to healthy, environmentally-friendly eating. Refractory (***): these individuals consume very little organic produce and pay little attention to the effects of food on health. Their perception of organic is negative, due to high prices, doubts about product authenticity and taste. They are also highly suspicious of all players in the sector, especially those involved in organic food. Those involved (***): these regular consumers of organic products are very concerned about the effects of food on health. They have a positive image of organic food and a good knowledge of labels, ...

3.1 Organic players in France

In France, the organic sector can be divided into three main categories:

Producers (***); Processors; Distributors (***).

The surface area devoted to organic fruit and vegetable production has been rising steadily for several years, although this increase has slowed sharply since ****.

growth in organic or in-conversion acreage France, **** - ****, in hectares Source: ****

We can see that the total surface area dedicated to organic fruit production is much higher than that dedicated to organic vegetables.

The number of producers has also been rising for several years.

number of organic fruit and vegetable producers France, **** - ****, in units Source: ****

The number of organic fruit producers is slightly higher than the number of organic vegetable producers.

The market is relatively fragmented. A large number of small producers distribute their produce to a multitude of (***) players: retailers, wholesalers, private individuals, supermarkets and specialist stores. In the organic fruit and vegetable segment, no B*B player stands out at national level. The national players are specialist store networks and supermarkets.

3.2 Producers and areas devoted to organic fruit and vegetables by region

All organic producers have to go through a conversion phase, during which they gradually transform their acreage by becoming more and more involved in organic farming. For the purposes of this study, we consider organic producers as a whole, which means that those undergoing conversion are also taken into account. For details of farms in conversion and their evolution, theAgence Bio website provides a comprehensive overview of the French regions. Part of their data is reported below.

Organic fruit and vegetable producers by region:

The maps and table below show the geographical distribution of organic fruit and vegetable producers in France in ****. Details are provided in the table below. The "fruit" column includes farms in the following categories: fruit, nuts, fresh fruit, stone fruit, pome fruit, other fruit and miscellaneous. For the "vegetables" column, the two categories taken into account are fresh vegetables and dried vegetables.

Source: ****

The regions with the highest concentration of producers are Occitanie, Auvergne-Rhône-Alpes and Nouvelle-Aquitaine. In fact, most farms are concentrated in the south of France, notably because of the sunnier climate.

Surface area devoted to organic fruit and vegetables by region:

In ****, there were ***,*** hectares devoted to organic fruit and vegetable production. These included ...

3.3 Distribution of organic fruit and vegetables

From the grower's point of view, organic fruit and vegetable distribution in France can be achieved in two different ways:

Direct sales: by the grower himself; Short-line sales: sales to an intermediary, possibly without the grower being present at the time of sale.

Source: ****

More generally, in household distribution, the distribution channels and their share of sales are detailed below.

Breakdown of organic fruit and vegetable sales France, ****, in % of sales Source: ****

Specialized distribution is therefore the main distribution channel (***).

However, mass-market retailers have also taken an interest in this segment, and are contributing to the development of specialized chains by creating their own brands or acquiring certain networks. for example, E Leclerc has developed Bio village, Carrefour has launched Carrefour Bio and Auchan has launched Auchan Bio. In ****, Naturalia was acquired by Monoprix, part of the Casino group. Similarly, in ****, Carrefour bought Greenweez (***), followed by So.Bio in ****.

However, specialist stores are going through a difficult period due to the decline in organic consumption (***)[***].

4.1 Typology of prices for the main organic fruits and vegetables, and differences with conventional agriculture

Every year, the Familles rurales association conducts a survey on the price and consumption of fruit and vegetables in France. TheObservatoire du prix des fruits et légumes à l'été **** provides us with very precise information, some of which will be relayed in this section.

Organic fruit prices:

The table below reports the average price in euros of the panel of organic fruits selected by Familles Rurales, for * kg of each fruit. The average price of organic fruit is **% higher than that of conventional fruit (***).

In addition, the price of an average *kg organic fruit basket has risen by *% in * year (***)

Organic vegetable prices:

Similarly, Familles Rurales reports the average price per kilo of the vegetables below. The average price of organic vegetables is **% higher than that of conventional produce (***)

Meanwhile, the price of an average *kg organic vegetable basket has risen by **% in * year (***)

4.2 Supply trends: towards a direct link between producers and consumers

Within the organic fruit and vegetable offer, in the wake of a global desire to eat more healthily and locally, a trend has been emerging in recent years: that of home deliveries of baskets of fresh fruit and vegetables. On January **, ****, for example, Carrefour acquired Lyon-based startup Potager City, which has been delivering fresh, local, quality fruit and vegetable baskets since ****. The company has set up operations in six French regions, and now offers the possibility of consuming baskets without subscription, and choosing the fruit and vegetables that go into them.carrefour has nonetheless decided to expand this startup's business by opening a convenience store called "Potager City" in the **ᵉ arrondissement of Paris in early ****[***].

In the same vein, startup Rutabago offers cooking boxes, delivering organic ingredients and adapted recipes to customers' homes every week. The startup plays on the demand for balanced products and ensures that each of its menus is checked by a dietician. All the ingredients used are certified AB: the organic farming label, and are delivered in the optimal quantity for the recipe. Finally, the price is attractive, as the company offers subscriptions in the form of *, * or * meals for *, * or * people per week, never costing more ...

5.1 General regulations

We won't go into detail about the regulations that apply more generally to the sale of fruit and vegetables: you can find them summarized here biolinéaires.com. Below, we report on the rules specific to the production and trade of organic produce.

A new European regulation (***) ****/***, applicable from January *ᵉʳ ****, specifies the rules to be respected concerning the production, processing, distribution, import, control and labeling of organic products. This regulation confirms and strengthens the requirements of the previous regulations to stimulate the development and consumption of organic products. Organic production will increasingly contribute to environmental and climate protection. The regulation also harmonizes practices between European producers, reducing the number of derogations and planning their end. It also extends the scope of application to new products such as wool, wax, essential oils, cotton and yeast.

Additional regulations, which can be consulted on the EUR-LEX website, also apply.

European regulation (***) ****/**** lists the substances authorized for use in organic farming: pesticides, fertilizers, additives and others.

The European regulation applies to the following agricultural products:

Live or unprocessed agricultural products; Processed agricultural products intended for human consumption; Vegetative propagating material and seeds used for cultivation.

5.2 Regulations for retail distribution

Notification obligation

In France, all organic operators must notify their activities to Agence Bio. Agence Bio is the public interest group in charge of developing and promoting organic farming. You need to fill in the notification form. The procedure has been permanent since ****. Notification is free of charge. The only exception is for retailers who only sell pre-packaged products, who are not obliged to notify.

Control obligation

The inspection obligation applies to stores selling organic products in bulk, where purchases exceed €**,*** (***) carried out within the store or at markets and trade fairs must be inspected. For these activities, the status is that of processor, not retailer.

Only distributors who resell packaged organic products directly to the final consumer or end-user AND store these products solely at the point of sale are exempt from inspection. This is the case, for example, with supermarkets that sell fruit and vegetables in plastic bags. [***]

Production conversion

Production must go through a conversion period, which begins after notification and adherence to the control system. At the start of the conversion period, the operator notifies the Agence Bio. He then sends his letter of commitment to his certification body. The latter checks that the operator is registered ...

5.3 Official labels

To ensure product traceability, two official labels exist in addition to controls:

The AB logo : This is the French label. It was created by the French Ministry of Agriculture, Food and Forestry. This label certifies that a product contains at least **% certified organic agricultural ingredients. The French AB logo is optional. The Eurofeuille logo : This is the European label. It identifies products that meet organic farming specifications. This logo is mandatory for organic products. It must be accompanied by an indication of the origin of the raw materials and the number* of the certification body. [***]

*This number is made up of the international code of the product's country of production + BIO + order number, e.g. for a product made in France: FR-BIO-**. The list of accredited certification bodies in France is available on theAgence Bio website.

In addition to these two official labels, there are numerous private labels. Today, there are some thirty organizations certifying organic products, all of which are detailed and explained on the Bio à la Une website.

6. Segmentation

• Bio c' Bon
• Biocoop
• Naturalia
• La Vie Claire
• Olga Groupe (Triballat Noyal)
• Agrial Coopérative Primeal
• Priméale Agrial
• Markal
• Ekibio Priméal
• Ekibio (Groupe Lea Biodiversité)
• Carrefour Groupe
• Auchan groupe
• E.Leclerc
• Casino Groupe
• Les Commis
• Potager City
• Côteaux Nantais
• La Fourche
• Pomona Groupe
• Le Saint Réseau