|
|
 |
|
Viewing report
|
|
|
|
France Food and Drink Report Q4 2010
Business Monitor International, Sep 2010, Pages: 71
Business Monitor International's France's Food and Drink Report provides industry professionals and strategists, corporate analysts, food and drink associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on France's food and drink industry.
The global economic crisis has had a profound impact on the French economy, with GDP contracting by 2.6% in 2009. This has negatively affected consumer confidence and therefore consumer spending. It has also exacerbated the trend towards private label products and discount retailing, and had a negative impact on consumption. Although economic growth has improved during 2010, we expect it to slow in 2011 due to fiscal cuts that are set to weigh on household consumption.
Headline Industry Data
-2010 per capita food consumption = 0.7%; forecast to 2014 = 6.8%
- 2010 alcoholic drink sales = -0.4%; forecast to 2014 = -1.2%
- 2010 soft drink sales = 3.3% ; forecast to 2014 = 18.4%
- 2010 mass grocery retail sales = 3.5%; forecast to 2014 = 18.5%
Key Industry Trends & Developments
Private Label Surge Could Be Curbed By Regulation Changes – A rollback of the regulations governing the relationship between suppliers and retailers may begin to curb the trend towards private labels. Private label products have been the unintended beneficiary of government legislation to curb the power of large retailers and the ongoing modification of these rules will allow large retailers to negotiate better prices for branded products and should make them more affordable.
Growing Demand For Convenience – Demographic and lifestyle changes, including an ageing population and an increasing number of single households, means that French consumers have developed a preference for smaller store formats. This has been exacerbated by high oil prices, which have discouraged consumers from driving to out-of-town locations. This has had a notable impact on hypermarkets, which have also been hit by the increasing popularity of discount retailers and a rise in competition has increased pressure on prices.
Key Risk to Outlook
Eurozone debt crisis – The greatest short-term risk to the French outlook is a credit event elsewhere in the eurozone. This would elevate risk aversion toward and could destabilise the economic recovery. It would also raise questions about the fiscal solvency of other countries in the eurozone, and while France is among the bloc's 'core' states, its government debt pile of over 80% of GDP in 2010, according to our forecasts, compares unfavourably even with the likes of Spain.
Faltering Recovery – Another risk is that with the economic recovery still very weak, the government’s plans for significant fiscal retrenchment could weigh more heavily on growth than we expect. Given that fiscal stimulus has been a key factor keeping the economy afloat during the global downturn, normalising the budget now could have a more detrimental impact on growth than we currently anticipate, and as such, this remains a downside risk to our consumption forecasts.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
France Food and Drink Report Q3 2011
France Food and Drink Report Q1 2011
France Food and Drink Report Q4 2011
France Food and Drink Report Q2 2011
Bulgaria Food and Drink Report Q3 2011
Venezuela Food and Drink Report Q3 2010
Spain Food and Drink Report Q3 2011
Venezuela Food and Drink Report Q1 2011
Thailand Food and Drink Report Q1 2011
France Food and Drink Report Q1 2010
|
|
|
|
