France Food & Drink Report Q3 2013 - New Market Study Published

From: Fast Market Research, Inc.
Published: Mon Jul 22 2013

Our outlook for France's consumer sector continues to be subdued, as signs of a robust recovery have yet to emerge in the eurozone despite some initially promising economic readings in the first quarter of the year, with the domestic outlook not much better in France. While household consumption has served as France's main growth locomotive in recent decades, we do not expect this to be the case in 2013. Unemployment has risen to almost 11% and is expected to remain sticky over 2013 in light of an increasingly stagnant economic outlook. In light of our revisions to the growth outlook, we have revised up our unemployment forecasts for this year, and now expect unemployment to average 11.2% versus a previous forecast of 10.6%. Additionally, we are seeing signs that household incomes are struggling. The contraction in disposable income bodes particularly poorly for household consumption growth, and the weakening consumer outlook is echoed in coincident indicators, with consumer spending contracting by 2.9% year-on-year in February, versus expectations of just 2.0%.

Full Report Details at

Headline Industry Data

* 2013 per capita food consumption growth in local currency = +0.6%; compound annual growth rate (CAGR) to 2017 = +1.1%
* 2013 alcoholic drink sales growth in local currency = +2.3%; CAGR to 2017 = +1.0%
* 2013 soft drink sales growth in local currency = +2.5%; CAGR to 2017= +3.6%
* 2013 mass grocery retail sales growth in local currency = +2.0%; CAGR to 2017= +3.0%

Key Industry Trends And Developments

Danone Pours Investment Into Bottled Water: In May, France based food giant Groupe Danone agreed to take over 51.5% of Turkish bottled water company Sirma for an undisclosed amount. With Turkey's soft drinks industry continuing to present dynamic opportunities for growth, Danone is well positioned to benefit from increasingly dynamic consumer demand. The owner of iconic water brands such as Evian and Volvic, Danone has continued to pursue increasing exposure in bottled water sectors, particularly beyond Central European markets. Already present in Turkey with its Hayat brand, the country's exciting consumer outlook, buoyed by a large, youthful population and strong economic environment continue to attract investment from multinationals looking to capture growing demand for bottled water.

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