The CFIA on myCfia.com - Isabelle Kaiffer (Nielsen): "More and more French people are attracted to local products"
With a demand for products that are more respectful of the environment, more "sustainable", more ethical, ... does committed consumption represent a growing segment of distribution today?
Despite an unfavorable context where more and more French people are seeing their purchasing power decrease, we are undeniably witnessing a development of this trend. There are two types of committed consumption: the first is passive. “The benefits will be for me, and if it's good for the planet, that's good! "The second is more altruistic:" I will buy certain types of products to really do good for the planet or for others. "
In the first group of products, and therefore the commitment to oneself, there is organic. The motivation to buy is to preserve one's health, but it also makes it possible to use less pesticides, to work for biodiversity,… we are therefore clearly in a commitment scheme. The Bio showed a growth of 20% until before the first confinement. Its market share reaches 5% of total consumption. With the 2 nd containment in recent weeks, there has been a stabilization, but it is undoubtedly to better recover afterwards. Its characteristic is that it is well positioned on raw products such as eggs, milk, infusions, baby products…. And it will become very important on these categories. Another type of passive consumption, the Clean Label (for example, sausages without nitrates, cookies or spread without palm oil, etc.). Sales are growing and continuing under the impetus of manufacturers, and strong consumer demand.
What other trends in engaged consumption?
Still in the altruistic commitment, more and more French people are attracted by local products. Their primary motivation is to support producers and the French economy, before there is less transport and concern for ecology ... Distributors are the first to push sales of local products. Another strong trend concerns packaging: more and more initiatives are being taken by manufacturers to replace plastic with other materials or to launch new ranges of products based on ecological, recyclable packaging, etc. It is in full development with legislation that is also evolving. It is a committed approach, because choosing an ecological packaging rather than another, it can also cost more. Going towards this type of product is really a strong gesture from the consumer! On the other hand, today 20% of French people buy products in bulk, more and more distributors and manufacturers are interested in this market which should develop further in the future.
Finally, the market for fair trade products, which has its type of clientele, continues to grow. All these trends, taken together, would represent 15% of the potential market share for FMCG. Significant development potential therefore for this committed consumption, on condition that it is a win-win approach: the consumer, as well as the distributor and the manufacturer must find their account there. You should know that 20% of French people are really in this movement, between consumers who buy organic, local, who pay attention to packaging, ... the size of the target is there!
Should hypermarkets rethink their model?
The hypermarket is the most important form of distribution in France with 39% of PDM. The supermarket represents 34% and the Drive 7%. They are nibbled by two types of currents: the drive, which jumped and rose to 9% during confinement ... but the drive, these are also the hypermarkets! It is therefore necessary that a complementary offer is offered, between what we find in store and drive. Moreover, the vast majority of hypermarkets which are currently being renewed are really focusing on their fruit and vegetable departments, and fresh products in general, because they know that this is where they will be able to attract the maximum number of consumers. In addition to managing their offer, hypermarkets face another problem, which is being nibbled on PDMs by specialized stores (discount or retail store type). Their answer is twofold: they will reduce the share of surface area of non-food products to devote it to food products. In addition, they can increase food and optimize their offer, keeping prices low. Attracting consumers by betting on promotions will be essential in the coming weeks. To become more attractive in the face of new consumption patterns, hypermarkets are adapting and evolving.