The egg market - France

1.2 Analysis of global and European markets

According to the FAO, the world egg consumption per capita has almost doubled since ****. Asia has contributed a lot to the growth of the market : over the last ** years, Asian production has increased fourfold, while world production has increased by a factor of *.*.

In ****, world production was estimated at ** million tonnes. Of this, **% was from China, **% from North America and *.*% from the EU.

In terms of world trade, *.* million tonnes (***) - TEOC - were exchanged, **% of which were egg products. In terms of value, the graph below highlights the decline in world trade between **** and **** with - *.*% fall. [***]

Value of world trade in eggs and egg products World, ****-****, in billions of euros Source: ****

The European market

According to ITAVI, france dominates the production of eggs for consumption in the EU. The EU's egg production is expected to grow by more than ***,*** tonnes in **** - *% more than in ****. This represents **% of the * million tonnes of eggs produced for consumption in the EU. Overall, in the EU-**, production increased by *.*% over the period ****-****.

Distribution of table egg production EU-**, ****, as % of production Source: ****

Spain records the highest increase between **** and **** with almost **% increase in production. Over the period ****-****, Germany recorded ...

1.3 A growing French market

In France, ** billion eggs were produced in ****, for a turnover of producers of about *.* billion € according to ITAVI.

The number of eggs produced in France has been growing since **** as highlighted in the following graph :

Evolution of egg production (***) France, **** - ****, in billions Source: ****

1.4 Foreign trade analysis

Foreign trade in shell eggs

By taking the codes ********, ******** and ******** on Finance.gov, the following graphs show the number of eggs in shell, fresh, preserved or cooked, from domestic or backyard poultry.

Foreign trade is in deficit in terms of poultry eggs in shell for France with a coverage rate of **% in ****.

External trade in poultry eggs in shell France, ****-****, in € million Source Foreign trade figures **** coverage rate: **% **** coverage rate: **%

France's coverage rate will improve in ****, thanks to an increase in exports and a decrease in imports.

The * main client countries are the Netherlands (***) and Spain with **% of exports in value.

Main destination countries for French exports of poultry eggs in shell France, ****, in % Source: ****

The * main supplier countries are Spain (***) and Poland with **% of imports in value.

Main countries supplying poultry eggs in shell France, ****, in % Source: ****

External trade in egg products by Eurostat :

Considering egg products and egg albumin, we can see that foreign trade is positive for France :

Foreign trade in egg products (***) France, ****-****, in millions of euros Source Eurostat Coverage rate for ****: ***%

1.5 The impact of the Covid-19 crisis

Overall, the impact on the egg industry is mixed with :

In the retail sector, the impact is very positive : over the first * months of ****, sales volume increased by **.* compared to *% per year in recent years : proof of a strong increase in home consumption.

In out-of-home catering, the impact is very negative : the out-of-home/household catering sector was very strongly affected by the confinements and sanitary measures. On average, the catering industry saw its activity drop by **% during the first containment.

In the food industry, the impact is also quite negative : from April onwards, there is a drop in egg consumption of around **-**%

In addition, there is a strong increase in the consumption of so-called alternative eggs (***) - as opposed to standard cage eggs. At the end of **/****, alternative egg sales represented **% of total sales. The Covid-** crisis has thus accelerated trends already at work in this area, accentuating the transition to alternative livestock farming as we shall see in the study.

Source: ****

In March ****, Les Echos noted a overproduction trend of eggs related to * factors :

Decrease of the outlets in the RHF : closed restaurants, inactive caterers A lot of investment in alternative breeding while conventional breeding still persists

2.1 Eggs, a product appreciated by the French

Egg consumption in France :

According to a survey CSA, in ****, **% of French people eat eggs. This was *% more than in ****. This is the case for all age groups, as **% of children enjoy eggs. Thus, on average, *** eggs are consumed per year and per person in France in **** : the French therefore consume more eggs than the European average of ***.

Frequency of consumption :

The vast majority of French people are regular consumers: **% of households consume eggs at least once a week.

Frequency of egg consumption France, ****, in

Why is the egg appreciated?

**% of French people consider eggs as an essential food product. Among the main aspects appreciated in this product, we can cite

**% say that eggs are an inexhaustible source of culinary creativity **% say it is a natural product that is good for your health

Eggs and egg products are appreciated for their high nutritional density because they are rich in proteins, essential lipids, vitamins, minerals and trace elements. [***]

A wide variety of uses

**% use it for dishes made only with eggs (***) **% combine it with other ingredients **% use it to make pastries **% of the prepared dishes **% of sauces

Source: ****

2.2 Distribution of egg consumption

Home consumption of shell eggs, bought in shops, represents **% of egg consumption in France.

To simplify, the market is divided **/** between the sale of shell eggs to supermarkets and the sale of eggs to the food industry and the catering industry, in the form of egg products or shell eggs.

Egg consumption by distribution channel France, ****, in Source: ****

2.3 Purchase criteria and egg categories preferred by the French in stores

The main criteria for buying eggs are :

The way the hens are raised : **% of French people support the industry's transition to alternative livestock farming French origin : **% of consumers are committed to it in **** A third criterion, somewhat less important, is the laying date according to CNPO

Importance of the French origin of eggs

According to the survey CSA, the "Oeufs de France" approach is very popular with French consumers. Thus, **% say that the presence of the "Oeufs de France" logo is likely to positively influence their purchase. Among the main advantages of French origin were cited the following :

the contribution to the preservation of livestock in France (***) quality (***) freshness (***) compliance with strict animal welfare regulations (***)

Breakdown of purchases by egg farming method :

In ****, **% of eggs consumed are from cage farms (***), but in terms of value, sales represent only **%. More than **% of shell eggs consumed by households are therefore from alternative farms.

Breakdown of French household purchases by egg category France, ****, in Source: ****

Between **** and ****, the changes in purchases in volume, according to ITAVI, underline the progression of the alternative on the cage.

In the graph below, the difference between the value and volume distribution of egg categories highlights that eggs from ...

2.4 Evolution of the food industries and the food service industries consuming egg products

As seen in *.*, the food industry and the catering industry account for a little less than half of egg consumption in France, including :

**% in the form of egg products for the food service and food industry **% in the form of shell eggs for the catering industry

The food industries use egg products in various fields, the main ones being :

pastry biscuit factory pastas dairy industry

If they can form the base of a dish, eggs can also be used as ingredients for :

bind: sauces, emulsions colouring : egg yolk emulsify fats to solidify the mixtures

As a must in culinary creation, they are logically widely used by these industries.

Why use egg products?

The argument for the use of egg products is the ease of use because they are ready to use as soon as they are in the form of egg products. They are also easy to store without hygiene and conservation problems and thus save time. We speak of egg product when the egg is in a form other than shell.

The CNPO distinguished :

"first processing" egg products : mainly used by the food industry, they come from the breaking of eggs and take the form of white, yolk ...

3.1 Value chain of the egg industry in France

Simplified diagram of the value chain of the egg industry

France, ****

Source: ****

NB:

TEOC = Tonnes of Eggshell Equivalents Pullets = Future layers

3.2 Analysis of egg production (table eggs)

Egg producers can be :

Under contract with packaging centres (***) Self-employed the producers have their own packaging centre

The contracted share is the most important.

The packing centres ensure the integrity and conformity of the eggs to market standards, by sorting, grading and packing them.

There are also groups marketing eggs for consumption, formed by players such as Matines, Oeuf de nos Villages, Cocorette and Appro.

Source: ****

Geographical distribution of laying hens

Brittany dominates the production of eggs for consumption, with **% of the number of laying hens.

Geographical distribution of OC laying hens France, ****, in Source Franceagrimer EO = edible egg

In ****, the average farm size is : [***]

**,*** hens for "standard" cage farms **,*** hens for floor rearing *,*** hens for organic farms

Towards the end of caged hens?

Since ****, the egg interprofession (***) to alternative eggs, which is also reflected in the consumption of French households. Eggs from alternative breeding are more and more popular, in a society where animal welfare is more and more important.

In ****, European regulations banned so-called "battery farming" and replaced it with so-called "managed cage" farming [***].

The players have had to invest in order to meet the standards of the new, more restrictive "managed cage" system. For their part, the ...

3.3 Analysis of egg distribution channels

**% of the French production is sold for home consumption of French households in shell eggs.

**% of the eggs are also processed into egg products, the rest is sold in shell form.

Marketing of eggs by distribution channel on the French market France, ****, in Source Franceagrimer NB: RHD = catering outside the home

3.4 Analysis of processing into egg products

As seen in *.*, **% of eggs are processed into egg products.

According to Franceagrimer, in ****, ***,*** tons of egg products were manufactured in France: the eggs used are of various kinds :

table eggs with defects of size, visual surplus production of "table" eggs specific farms where eggs are intended for processing

Processing is the result of strict processes carried out by specialized companies.

Prodcom groups egg products under the description : "Egg products, fresh, dried, steamed, boiled, moulded, frozen or otherwise preserved (***).

The following graph shows the overall growth of egg product production in value since **** (***) despite a slight drop in ****.

France is the second largest producer of egg products by value with **% of the market, behind Italy with **% of production in the EU-**.

The amounts given relate to the value of the production marketed or intended for marketing, calculated on the basis of the ex-factory selling price achieved́ or likely to be achieved́ during the period covered by the investigation. It also includes the cost of packaging; on the other hand, it does not include turnover tax, consumption tax, separately invoiced transport costs and discounts granted to customers.

Evolution of the value of egg products production (***) France, **** - ****, in € million Source Eurostat TCAM ...

3.5 Segmentation and dynamics of players in the retail sector

In supermarkets, a market that is growing faster in value than in volume:

In ****, sales of eggs in supermarkets have increased by *.*% in volume and *.*% in value compared to **** This was driven by the growth in sales of eggs from farms other than cages.

Source: ****

Analysis of market share in the retail sector:

Private labels dominate the French egg market in supermarkets - with **.*% of sales in value for the so-called "classic" private labels. National brands follow with **% of market share, then come the regional brands with nearly **% of market share.

Market share in the retail sector in terms of egg sales value France, at the end of **/****, in % of market share in value Source Lsa-conso NB: Private label = distributor brands

Analysis of the main brands (***)

The egg of our villages dominates the market, with a positive dynamic (***) even though it only represents *% of sales in supermarkets.

Main national egg brands: market share and change in sales value over one year France, as of end of **/****, in Source: ****

Matins a subsidiary of the Avril group, has a network of *** partner breeders. The company, which had bet on hens in cages, has experienced difficulties in recent years. Between **** and ****, the company of ...

4.1 Typology of egg supply

Method of rearing laying hens and type of eggs : [***]

There are * types of breeding that result in * types of eggs

*) Organic farming (***) : Hens fed with organic food, with access to outdoor runs with vegetation. Indoors, the hens have nests, perches and food.

*) Free-range farming - including Label Rouge (***) : the hens have access to an outdoor run during the day.

*) Ground farming (***).

*) Cage farming (***) :  regulated since ****, hens live in "housing" in groups of ** to **, with perches and nests.

4.2 Evolution of the main costs and prices of eggs and egg products

Evolution of the main costs for the sector

Most of the time, cage farmers who want to switch to alternative systems have to invest in new buildings, requiring an average investment of ** to ** euros per hen.

The CNPO was estimating to *** million the amount of investment required, excluding the cost of land, to make the transition to the **% alternative livestock farming system.

At the end of ****, the sector will see a sharp increase in the cost of raw materials for chicken feed. Faced with the strong demand for cereals - particularly from China - the prices of wheat, corn, soy and other agricultural raw materials are rising sharply, even though they are used to feed laying hens (***). [***]

The players in the sector are hoping for an increase in the price of eggs and egg products, particularly from large-scale distribution.

Evolution of the index of raw material costs for laying hens France, **** - ****, in index base *** January **** Source: ****

Price range according to eggs

According to CNPO **% of French people are willing to pay more for alternative eggs.

ITAVI points out that egg quotations jumped in **** while the quotation level was down *.*% over the year ****.

As a general rule, from the least expensive ...

4.3 Major issues and trends in the egg industry

As the alternative egg becomes more common, brands need to focus on other areas to differentiate themselves.  

The importance of traceability and French origin : The Eggs of France logo was launched in ****, and since summer **** even extends to food products containing eggs in recipes.  

The "without": Brands are increasingly focusing on "no" products: no antibiotics, no GMOs, etc.

The premium : In ****, Matines has relaunched a brand that it had stopped ** years ago to relaunch it on a "premium" segment - by betting on tradition and terroir. The eggs are guaranteed GMO-free and ***% alternative (***). The brand intends to guarantee the traceability of the eggs by setting up a blockchain system

The ecological argument : At L'Oeuf de nos villages, since ****, most packaging is no longer made of plastic, which has been replaced by cellulose.

Overall, brands are also seeking to reassure consumers about the quality of eggs.

Source: ****

We can also note the appearance on the market of two new players in recent years, who are capitalizing on the above-mentioned trends.

"C'est qui le Patron ?!" is a brand launched in **** focusing on supporting producers with a "fair price". Initially focused on products such as milk, since **** the brand has been offering organic ...

5.1 Regulations

Eggs are subject to regulations that ensure their traceability and set the applicable marketing standards.

There are * categories of eggs, as they are classified in the packing centres :

class A eggs are fresh eggs intended for consumers class B eggs are eggs delivered to industries

The eggs must also be labelled in these centres according to the following procedure :

the * er number indicates the type of farming (***) the following two letters indicate the country of the European Union where the farm is located the three letters following the country code , refers to the breeding site in France, the last two figures , indicate the number of the building where the hen is located.

It is also compulsory to indicate on the packaging the farming method, as well as certain information such as the minimum durability date (***) or the date of laying.

Source: ****

6.1 Segmentation

• L'Œuf de nos Villages
• Matines (Avril groupe)
• Loeuf
• LDC Groupe
• Lustucru Frais (Pastacorp Group)
• Cocorette Distribution
• Eureden Group
• Le Gaulois (LDC groupe)
• P'tit gone
• Cocotine - D'Aucy France (Euroden groupe)
• Fermiers D'Ancenis
• Coquy Oeufs
• Circul’egg
• Avi Savoie
• Baby Coque
• Caillor La Caille Des Landes
• Cdpo
• Cecabroons Ponte
• Delon
• Ets Francois Gille
• Ets Seguy
• Grousset Et Fils
• Heman
• Mirebeau Ovoproduits
• Odeon
• Odnv
• Oeufs Nord Europe
• Pep
• Perle Jaune
• Pestourie
• Pgh Holding
• Saveurs Et Traditions (Sbco)
• Servi Oeufs
• Sgaat (Sté Garonnaise Agro Alimentaire Thomas)
• Sicadap
• Socovo
• Sodine
• Sté Cooperative Agricole Le Gouessant
• Sté Vimoise D'Ovoproduits (Sovimo)