French agri-food – a dynamic sector
Agriculture and the agri-food industry are an asset for France, making it one of the world’s leading producers and exporters of foods and beverages. Agri-food plays a key role in the French economy and France ranks first in the European Union, with one-fifth of the value added in the sector. Faithful to tradition, to the soil and to the pursuit of quality, French food and beverage companies are also modern and innovative, key factors of dynamism and competitiveness.
Key figures
- World’s no. 1 exporter of processed food products.
- More than 1,500 new products launched every year.
The example of French innovation in dairy products in 2007 (Cniel)
- 184 new products launched in France (including 82 in the cheese segment and 78 in fresh foods).
- Pleasure and ease of use are the 2 predominant trends (packaging and handiness for consumers), ahead of healthiness.
The nation’s leading industrial sector
France is the world’s third-leading agricultural power and Europe’s leading producer of farm and agri-food products. The agri-food industry ranks second worldwide behind the United States and is France’s leading industrial sector. In 2007, the country’s agri-food sales rose sharply (+7%), reaching € 154 billion, i.e. more than 500 Airbus passenger planes!
With 420,000 employees, agri-food is also France’s second leading employer, after the engineering industry. The sector, with some 13,000 firms, is composed of very large food corporations (Dannon, Lactalis, Bongrain, Pernod Ricard, Terrena and others) alongside a multitude of small companies throughout the country (70% have fewer than 20 employees and only 5% have more than 250). These dynamic firms have helped France become the European Union’s leading exporter of food and beverage products.
Research and innovation: keys to the sector’s success
In France, agri-food generates the largest share of industrial added value, i.e. 15% of all French industry. In addition to traditional production, which has always expressed the creativity of the sector, the French agri-food sector is known for its great capacity for research and innovation. Whether in products, processes or marketing, nearly 60% of French food and beverage companies innovate. Agri-food industries’ research expenditure increases twice as fast as that of businesses in other sectors. Food and beverage companies devote an average of 7% of their sales to funding innovation.
As in most countries, the French food and beverage market is constantly changing. It keeps pace with major changes in society such as urban development, population trends (blending of cultures, aging, etc.), sustainable development (respect for the environment, etc.) and new consumer needs and desires (practical foods, health benefits and more).
Sources: French Customs, Ania, Insee, Agreste
For more information:
Agribusiness, a key sector in France www.invest-in-france.org/international/en/agribusiness-sector.html