Fresh fruit and vegetables are becoming more popular. Seafood consumption is also increasing, while meat and poultry remains constant. Sales of frozen products and non-alcoholic beverages are rising. Wine consumption is decreasing slightly, accompanied by a trend towards higher quality wines.
The market is primarily price driven. The quality end of the market can be less price sensitive, but there is still a ‘good or close enough’ attitude among buyers presented with a choice between two or more similar products.
French consumers are health conscious and are becoming more demanding regarding quality standards and traceability of products.
Getting your product into market
Preference is given to long-term partnerships, sustainability and brand building, so the selection of a local partner is the key to a successful market entry. Depending on the product, an exporter can enter the market through a retailer's central buying office or a specialised importer or distributor who is responsible for the delivery of products to distribution centres.
The use of a local distributor is recommended in particular for the hotel, restaurant and institutional (HRI) sector as well as niche products.
For a New Zealand supplier with little knowledge of the French market, building a relationship with a French importer offers advantages. They provide up-to-date information on business practices, trade laws and regulations, as well as sales, marketing and distribution strategies.
Most large volume buyers, hyper and supermarkets request direct supply and mainly buy straight from source.
Importers and wholesalers have a smaller turnover but their procedures aren’t as stringent as those of hypermarkets. They also often target the HRI sector which commands better prices.
Exhibiting at SIAL, the French food industry trade fair held every second year in Paris, can be a successful way of introducing a product to this market.
Regulations
In France processed foods attract higher duties than raw materials. Every item falls under a different tariff category.
Opportunities
- New Zealand enjoys a clean and green image and an excellent reputation in the meat and seafood sectors for product quality and consistency.
- There could be good prospects for exporting innovative dietetic, health and organic food products to France. Demand is rising for organic foods.
- The Rungis market, the “largest wholesale market in the world for fresh products”, deals with both fresh and frozen foodstuffs and is a good entry point for New Zealand products.
Challenges
- France is a very competitive market and the cost of freight makes market penetration more difficult. To compete in France a product must offer a competitive advantage combined with innovation or uniqueness in ingredients, packaging, or internationally recognised branding.
