Organic Packaged Food in France

PROSPECTS

Organic packaged food seen as a safe haven following numerous food scandals

Over the review period some analysts were sceptical as to the ongoing success of organic packaged food in France. However, in 2018, the category continued to perform well.

All organic categories register positive growth in 2018

All organic categories posted positive current value growth in 2018. Categories such as dairy and bread are benefiting from increasingly accessible prices.

A place for everyone

Many multinational or mainstream local players will continue to launch organic equivalents of their well-established standard brands, which could affect the leaders in organic specialists. However, rising local production (which was a major issue a decade ago), widening distribution and a growing consumer base, coupled with increasing brand (or retailer) loyalty should ensure growth in most channels.

COMPETITIVE LANDSCAPE

The battle between Carrefour and Leclerc is also being seen in the organic space

Organic packaged food is one of the only categories in which private label was not only able to outperform multinationals but also post strong growth in 2018. The French retail giant Carrefour continued to lead the overall category thanks to its strength in the organic chilled, frozen and shelf stable meat categories, as well as organic spreads and edible oils.

Historical first movers and dairy specialists continue to dominate the branded space

Among brand owners, the leading players in 2018 were dairy specialists and the pioneers of the organic category back in the 1990s. Thanks to the strength of its Lactel brand in organic milk, Groupe Lactalis was one of the leading players.

Competition increases between players of all types and sizes

Almost all conventional players are now interested in the potential of organic packaged food, which is further fragmenting the competitive landscape. For instance, in order to offset the decline in baby food, both Nestlé France and Groupe Danone have expanded their organic portfolios under their Naturnes and Les Récoltes Bio de Blédina brands, respectively, with the organic space having previously been the preserve of brand owners such as Hipp and Vitagermine.

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