And in terms of areas of growth, the most dynamic area for seafood in France today is fresh processed fish.
In 2009, salmon, imported largely from Norway and Chile, remained the No. 1 choice for French consumers, representing 20 percent of the country’s seafood consumption, valued at EUR 321 million in household spending. In second place came cod at EUR 188 million, followed by oysters at EUR 183 million, mussels at EUR 158 million and saithe at EUR 95 million.
In 2009, more than 44 percent of French households purchased salmon, trailed by mussels at 38 percent, cod at 31 percent, saithe at 24 percent and oysters at 22 percent.
Household spending on seafood is distributed between frozen fish at 20 percent, for fresh fish at 35 percent, fresh processed seafood at 30 percent and tinned fish at 15 percent. Overall, French households consume some 35 kilograms of seafood a year.
Fresh fish reigns supreme
When prices of fresh fish rise in France, consumption falls and consumers switch to cheaper alternatives, according to Marion Fischer, an economist at FranceAgriMer. Fischer told SeafoodSource that in 2011 the price of fresh fish rose 4 percent in France, and, as a result, consumption dropped 5 percent. According to the economist, this pattern is repeated over the long term, with the only exception being salmon. That’s good news for salmon, because salmon prices worldwide increased significantly in 2010 and early 2011 until dropping in late 2011 as production began to increase.
“The French have a real appetite for salmon, and despite the price hikes in 2009 and 2010, consumption remained stable,” said Fischer.
In the long term, FranceAgriMer has noticed a general fall in consumption of fresh fish, with processed fish products — smoked salmon, crab sticks and cooked prawns — taking market share away from fresh fish.
Stability in frozen
In France, the trend toward frozen and tinned fish is one of stability, even if prices start to creep up. In recent years, higher prices of frozen fish were a reflection of the wider global rise in fish prices. But despite the price increase, the effect on sales was negligible.
The French penchant for oysters and mussels saw these two shellfish items amassing the most sales by household in 2009, in terms of volume. French consumers ate some 46,519 metric tons of mussels and 31,914 metric tons of oysters in 2009. In third place was salmon, at 27,968 metric tons. In fourth place was cod, as sales of that species continue to grow with French households buying some 12,163 metric tons. Next was saithe at 10,602 metric tons.
Independents rule
Data from market researcher Gira Foodservice and FranceAgriMer suggest that foodservice outlets in France spent some EUR 1.6 billion on seafood in 2009, in roughly equal amounts between fresh and frozen products — EUR 750 million on fresh and EUR 703 million on frozen. Chilled delicatessen products accounted for EUR 108 million and canned seafood products for EUR 71 million.
At EUR 944 million, independent restaurants spent nearly three times more on seafood than self-managed institutional caterers (EUR 315 million) and nearly four times more than restaurant chains (EUR 181 million).
Innovation shaping the market
After a lull in new product development (NPD) in 2008 and 2009, NPD activity has picked up significantly in France and is currently particularly dynamic for seafood products. According to market tracker Mintel, France accounted for 15 percent of overall European NPD activity in the 12-month period through November 2011, behind Germany and the United Kingdom.
After a stagnant 2008 and 2009, the number of new product launches grew 25 percent in 2010 compared to the previous year and remained fairly stable in 2011. While meat products attracted the highest number of launches, seafood products are certainly closing the gap, with the rate of new seafood products growing faster than the rate of new meat products.
And despite private label expanding its share of NPD in 2011, branded manufacturers operating in France continue to roll out the lion’s share of new products. According to data from market research firm Mintel, French seafood firm Fleury Michon ranked No. 1 in terms of NPD activity, accounting for 7 percent of new launches carried out in the 12-month period through November 2011.
Reflecting a European-wide trend, convenience continues to hold a lot of influence in France. According to Mintel, four of the top 10 new products fell into this category in 2011.
Seafood gaining on meat
While meat products are the largest category of NPD activity, recent figures suggest that the seafood industry is banking on new product development to open up new markets and drive sales growth. In 2011, the growth rate for seafood products was high, as a result its share of overall NPD activity expanding almost 9 percentage points.
There are clear signs that French seafood manufacturers are capitalizing on NPD to grab market share from rival proteins. Figures from Mintel reveal that from 2007 to November 2011 NPD activity for seafood in France has gradually seized market share from meat products and, in particular, poultry products. In 2007, NPD activity for seafood stood at 31.9 percent, compared to 36.9 percent for meat and 31.1 percent for poultry. By 2011, NPD activity for seafood reached 40.5 percent, compared to 40.4 percent for meat and 19.1 percent for poultry.
But, overall, new launches have yet to catch up with pre-2008 figures. Impacted by the European recession three years ago, NPD activity dropped over the 2008-09 period — launches declined by 23 percent in 2008 and by another 30 percent in 2009. So despite the positive growth reported in 2010, NPD in 2011 is still expected to remain some 32 percent lower than in 2008. After falling in 2008-09, seafood product launches are managing to partially recover lost ground.
Private label vs. brands
The market is highly fragmented in terms of NPD activity, with the top 10 companies collectively holding a 37 percent share of new launches. But while branded manufacturers certainly dominate NPD activity in France, Mintel claimed that private labels — such as Monoprix, Intermaché, Casino and Carrefour — have intensified their efforts in new design and packaging in recent years. Private label, it would seem, has a clear eye on expanding its share of seafood sales. While it accounted for one out of every five new products in 2008, this figure rose to one in three by 2011.
