Income and Expenditure: France

September 2021

Per capita consumer income is expected to increase over the long term in France, owing to extensive labour market and tax reforms, as well as a massive COVID-19 recovery plan. Over the long term, purchasing power will be concentrated in the hands of current-day middle youth, yet the senior population will be the major high-value spenders. Although income inequality is rather low in France, regional and generational gaps remain an important issue, hampering equal discretionary spending growth.

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Overview:

The Country Briefings series examine market potential, economic and consumer trends impacting each country and how they are set to change.

Each Country Briefing covers one of these topics:

Economy, Finance and Trade: Understanding the structure, health and potential risks of an economy are important for decision-making within an existing operating environment as well as for expansion strategies. Real GDP growth, inflation and exchange rate fluctuations will directly impact consumer market potential. Import and export trade profiles help gauge how open an economy is to trade and investment, while analysis of government finances can be used to explore macroeconomic stability and susceptibility to economic shocks.

Income and Expenditure: Insights into income, wealth and expenditure of consumers are vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

Households: Global shifts in gender, ageing, migration and housing are transforming the size, location,  general make-up as well as income and expenditure of households around the globe, with diverse implications for governments and companies. Households insights can help identify the decision-making processes and consumption tastes of different household groups and types within a country, and assess household appliance and digital readiness that is key for formulating market technology and internet strategies.

Business Dynamics: A stable and competitive business environment is vital to operate efficiently and attract inward investment. Businesses can assess these factors alongside challenges such as corruption, political instability and terrorism, also gain insight into business operating environment and make strategic investment decisions. Transport infrastructure, ICT readiness and labour force dynamics will also identify potential issues with a supply chain and the level of workforce skills.

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The briefings cover 103 countries and identify topics of crucial interest to planners, marketers and researchers.

Income and Expenditure: France

HEADLINES

PROSPECTS

Current middle youth to shape future discretionary spending patterns
The middle class to remain prevalent in France, amid relatively low income inequality
Island of France to remain the largest consumer market, amid persisting regional disparities
Expanding affluent French population to support higher position in the Wealth Index
Chart 1 Annual Gross Income Distribution by Age in France: 2020 Chart 2 Distribution of Income in France: Key Metrics 2020-2040 Chart 3 Gross Income Growth Index in France 2020-2040 Chart 4 Average Gross Income by Age in France: 2020-2040 Chart 5 Population by Income Bracket in 2040 Chart 6 Gini Index 2020/2040 Chart 7 Households by Disposable Income (PPP) over 2020-2040 Chart 8 Overview of France’s Social Classes Chart 9 Social Class D by Age: 2020/2040 Chart 10 Consumer Market and Spending in France: Key Metrics 2040 Chart 11 Consumer Expenditure in Top Regions: Size in 2040 and Growth over 2015-2040 Chart 12 Urban/Rural Consumer Expenditure in 2040 Chart 13 Household Expenditure in 2020 Chart 14 Consumer Spending by Category in France 2020-2040: USD per Household Chart 15 Index of Consumer Prices in France over 2010-2020 Chart 16 Household Expenditure by Category in France: 2040 Chart 17 France’s Wealth Landscape: 2020-2030
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