Points of view | insights
FOOD CONSUMPTION: RESPONSIBLE TRENDS IN THE FACE OF THE COVID-19 CRISISHow are these expectations evolving and how are they taken into account by the players in the sector?
At the end of 2019, 60% of French people said they had changed their purchasing or eating habits over the past 3 years
The motivations and triggers were often varied and complementary: economic, ecological, ethical, even philosophical. Certain major concerns are making their way into the daily lives of the French. However, it is not always easy to know if the new consumer trends that are developing are a cause or a consequence – the chicken or the egg? – of dietary behaviors, as the information, influences and marketing and communication strategies of the different actors involved are so intertwined.
If food behaviors were at the beginning mainly individual and private choices, dictated by tastes and economic imperatives, they were then oriented by a search for personal and direct benefits on health. In recent years, they have become more and more militant acts, bringing food consumption into the political and societal arena.
It is no longer simply a question of controlling what is going to be consumed in the primary sense of the term, i.e. ingested, but for many people it is a question of taking part in an effort that is no longer individual but collective on subjects that have become central: health, ecology and respect for the environment, animal welfare, social and economic justice throughout the chain, and support for the “made in France” brand…
How are these trends evolving, especially in times of crisis?
New trends are emerging
The Covid health crisis acted as a catalyst by accelerating certain practices. Reclining at home without leisure activities in an anxiety-inducing context, the French first focused on themselves and their homes, rediscovering cooking and putting meals back at the center of well-being and conviviality. At the beginning of the crisis, shopping was one of the few authorized outings, cooking one of the few accessible leisure activities. We have therefore eaten better, preparing more dishes and valuing the raw product. On the other hand, the pandemic has encouraged the discovery of new distribution channels, either to compensate for stock-outs in supermarkets or to avoid the most congested channels. Then, the economic tension added to the health crisis, food consumption was more thoughtful in its globality: where do the products come from? who grows them? who sells them? who benefits from my consumption? The result is a general awareness of the power of consumption in general and food consumption in particular. However, in a context where price remains the primary purchasing criterion, large retailers play a major role in guiding choices and the food market remains more than ever a market in the economic and capitalist sense of the term.
While many French people want to anchor these new behaviors in the long term, they expect a responsible offer and affordable prices from retailers.
In this study, Pagamon presents the major pre-Covid food consumption trends and questions them in light of the health crisis since March 2020, illustrating them via a non-exhaustive panorama of innovations and initiatives on each theme.
The French have more and more ethical and ecological concerns
6 out of 10 French people said they had changed their purchasing habits or eating habits between 2019 and 2020. Certain major concerns are making their way into the daily lives of the French, who are gradually integrating them. How are these trends evolving, especially in times of crisis?
#1: Avoid losses and waste
#2: Buy local and promote short circuits
#3: Reduce the use of plastic packaging
#4: Buy more organic products
#5: Ensure better remuneration for producers
Food waste is increasing despite a general concern
%
of French people said they changed their behavior by avoiding losses and waste in 2019
Tons
of food waste per year in France
%
increase in food waste between 2010 and today
%
of French people are aware that they can reduce their consumption
The law is evolving, retailers are adapting and offering integrated solutions
Creation of a label to promote good practices
France has set itself the goal of reducing food loss and waste by 50% between 2020 and 2025 and adopted new laws in this direction in February 2020.
As a result of these texts, the “anti-food waste” label will be launched in 2021. This label will be based on technical specifications depending on the sector and will allow to highlight the good students, to make known and to accompany the practices and thus to create a virtuous dynamic by highlighting them in the eyes of the consumers.
Carrefour expands its initiatives with a new basket
Carrefour supermarkets have recently developed a new anti-waste offer, which completes the actions already implemented by the retailer. They now offer a 2kg box of fruit and vegetables for 3€. These downgraded products are thus revalued. The boxes are available in all the group’s hypermarkets.
Similar initiatives had already been launched (ugly fruits and vegetables Intermarché, broken mouths Casino) but abandoned. Will this new format be more sustainable?
Driven by the law and the awareness of the French, new initiatives are developing
Revaluing products rather than losing them
Established in 2019, the short circuit store Miyam offers an interesting alternative. In addition to offering raw products, they take care of processing some of them themselves. On the one hand, this allows them to limit intermediaries and on the other hand, it reduces food waste. When a raw material starts to lack freshness, it is transformed to give it a second chance. An interesting concept but difficult to replicate on a large scale?
Providing an outlet for unsold goods
Fairly well-known to the public, the Too Good To Go app, founded in 2015, is now present in 14 countries and reaches 8 million users in France. The app offers to “save” meal baskets from restaurants and local shops, at a reduced price (about 3 times cheaper). In France, it has also partnered with 53 manufacturers and retailers of mass consumption to sign a pact to further educate consumers about expiration dates (BBD & UBD). With its partnerships and more than 21 million meals saved, the application has become a reference on the subject.
Offering an outlet to discarded products
Nous is a chain of grocery stores offering downgraded products: poorly graded fruits and vegetables, dried products with a short or expired shelf life, products with preserved integrity but damaged packaging… The products are sold between 20 and 30% cheaper than in traditional supermarkets and offer an outlet to producers and manufacturers who would have had to throw them away.
Created in 2018, the network now has 12 stores, spread across the greater West and Paris. The brand has signed a fundraising of 8 million euros and plans to expand by targeting large store formats on the outskirts of cities, but also with a concept of local stores. The rate of planned openings is one per month.
Local and short circuits: French seek to reconnect with the rural world
%
of French people said they changed their behavior by buying more seasonal products in 2019
%
of French people said they had changed their behavior by giving more preference to local products and short circuits in 2019
%
of food purchases are made in short circuits
%
of French people say they are ready to consume as many local products as possible to support the economy
Traditional players seek to strengthen the sense of proximity
A label to highlight local production
Access to local food is becoming a commitment. This is for example the case in Ile-de-France, which is not the region one thinks of spontaneously when it comes to local producers. The regional council recently announced the adoption of a regional plan dedicated to promoting local food for its inhabitants.
The region already has a label “produced in Île-de-France”, which it wants to promote and aims to increase the number of references by 50%. It has also created a website, “Mes Produits Locaux”, which lists sales outlets as well as restaurants and actions that are part of this approach.
HIGHLIGHTING LOCAL KNOW-HOW
In supermarkets, Ethiquable offers its French products under the brand “Paysans d’ici”. More than a French origin, the product claims a departmental origin.
The raw materials are sourced from committed producers grouped in 14 cooperatives on the French territory. In this way, the consumer can, even in supermarkets, buy local products. They only need to change their purchasing habits a little. It also gives an impression of transparency, which is a vector of confidence for the consumer.
The distribution networks in short circuit progress
Connecting buyers and producers
Launched in 2011, the “La Ruche qui dit Oui!” network now includes nearly 1,500 withdrawal points in Europe.
Consumers choose a pick-up point near their home, place their order online, and then pick up their basket during a unique time slot. The catalog varies by pickup point, and products only travel an average of 65km from the fields to the consumer.
Since 2018, the network has also encompassed an online sales and delivery platform in Île-de-France.
Producers get together and organize themselves
Relatively old, Bienvenue à la ferme is a network of more than 5,000 producers and producers’ associations offering retail sales of their products through different channels (direct sales, farm drive…).
At the time of the containment, the drive farms saw their turnover multiply by 3 in the space of 15 days, with also an increase of the average basket of +50%. In addition, the pandemic has pushed these producers to think of new alternatives, such as the establishment of delivery, or the proposal of cooked products.
Plastic: an important issue not yet sufficiently addressed
%
of French people said they have changed their behavior by reducing their use of plastic packaging in 2019
of plastic waste per year in France, i.e. 66kg per inhabitant
%
of household plastic waste (≈1.2Mn tons) is recycled
%
of production of plastics manufacturers during the 1st containment vs. the previous year
The distribution industry is rethinking itself while bulk distribution is finding its audience despite strong constraints
Changing in-store practices
The Carrefour group has set itself a number of objectives, including its “Zero Plastic Mission”, which is the origin of various actions implemented by the retailer.
Recently, a new solution has been tested in one of the group’s hypermarkets: an alternative to the transparent plastic boxes used in the bakery section. The latter has been replaced by a recyclable box, which has made it possible to do without 2,500 plastic boxes during the two-week test.
Offering an alternative to traditional distribution
Launched in 2013, Day by Day is a network of 100% bulk stores offering food, cosmetic and household products. With 72 stores throughout France and a presence in Belgium, Day by Day is the largest specialized network in the country.
Manufacturers review their products to adopt greener solutions
Duplicate the offer with a greener refill
In order to reduce the use of plastic without compromising the integrity of their products, some brands offer in addition to their original format a “refill” format, generally in a thin and flexible plastic, such as a doypack.
This one allows the reduction of plastic use and proudly displays it. If it was already used for a long time for hand soaps, we now find it declined by many manufacturers, allowing to limit the number of guns, pumps and other hard plastic packaging.
If the industry does not completely do without plastic, it is taking a step in the right direction and getting the consumer used to asking questions. Indeed, if the refill is more ecological, it is not always more economical.
RETHINKING formats to address the issue
Independent cosmetic brands have recently multiplied their green and ethical initiatives. The biggest groups, which have been criticized for abusing plastic packaging, endocrine disruptors, use of synthetic ingredients… are now joining the movement.
This is notably the case of L’Oréal, which now offers its Garnier shampoos in solid format. They display “made in France” and “zero plastic waste” on their cardboard box. They also display many details about their manufacture on the dedicated website, for more transparency.
Organic food has been a major trend in recent years, and it has its place at the French table
%
of French people said they changed their behavior by buying more organic products in 2019
MDS d'€
size of the organic market (excluding restaurants) in France in 2019
%
of the average annual growth of the organic market between 2010 and 2019
%
share of organic food in French food expenditure (2.3% in 2010)
Organic is part ot the strategy of traditional players, while specialized brands are strengthening their presence
THE ORGANIC PRODUCT THAT CHALLENGES THE GIANT
Some products are unavoidable, such as the Nutella spread. It is therefore quite significant that its challenger is an organic brand.
Like its competitor, Nocciolata is Italian, produced by Rigoni di Asiago. It represents only 6.5% of the spread market, but this is enough to place it as the national number 2. The brand has multiplied its turnover in France by 100 over the last 10 years.
SEVERAL POSSIBLE STRATEGIES FOR TRADITIONAL MANUFACTURERS
Many large traditional brands are launching themselves into organic products. This is the case, for example, of the Bel Group, with “Le fromage de Margot”, which is banking on a brand new dedicated brand to break with its well-established conventional image.
Some choose to offer their usual products in an organic version alongside the original (Nestlé Cereals). This last solution allows to capitalize on the customers’ knowledge of the brand and allows the consumer to choose organic products by changing his habits only in a small way.
Traditional retailers take the organic turn
MAKING ORGANIC THE BASIC OFFERING
At the beginning of 2018, Monoprix announced that it would stop marketing its conventional bananas.
Since then, the retailer only offers organic and fair trade bananas and this at a price of €1.99 per kilo, the reference price of conventional bananas before this announcement. By offering only this alternative, Monoprix shows its commitment to more respectful and accessible everyday products.
SEVERAL POSSIBLE STRATEGIES FOR TRADITIONAL MANUFACTURERS
In order to make a commitment to the quality of products offered by Carrefour stores, the group has published the Act for Food manifesto. This manifesto is a commitment, a collection of concrete actions to enable everyone to eat better.
Act 1 of this manifesto concerns French organic food. With Act for Food, Carrefour promises to make French organic food accessible to all, through its organic private label. This involves developing relationships with producers and a commitment to organic conversion.
A large proportion of French people say they consider the remuneration of producers to be a priority, but this remains opaque
%
of French people said that better remuneration for producers was their priority food commitment in 2019
%
of French people said that a responsible consumption approach is mainly motivated by the support of producers in 2019
%
of French people think that it is possible to reconcile a profitable economic model with respect for producers
%
of French farmers did not pay themselves a salary in 2017
New brands put the producer at the heart of their message
EMPOWERING THE CONSUMER
Founded in 2016, “C’est qui le patron?!” defines itself as the consumer brand. The products correspond to a very precise set of specifications, established via an online consultation of 10,000 consumers.
The consumers are also in charge of defining a fair price to recommend for each product. Producers are for their part consulted, as well as experts, on the fair price that values their work. In 2019, the brand sold 59 million liters of its organic milk, the first product to be developed following the dairy farmers’ protests. The range now includes 23 different products, with many more in development.
HELPING FARMERS TO ADD VALUE TO THEIR PRODUCTS
Co-created by the former Minister of Economy Arnaud Montebourg, La Mémère is a premium organic ice cream brand distributed in supermarkets. The concept is based on the elimination of intermediaries and the processing of milk directly at the producer’s.
A laboratory designed from recycled containers is installed on the farm and the breeders are trained by the best worker of France ice cream maker, David Wesmaël. The latter, financially supported by the brand, are 51% shareholders in the project and benefit from an initial 5-year contract that values their milk production at a price 67% higher than the market average. This operation also allows the creation of two jobs on the site.
Retailers respond and develop their own transparent channels
HARD DISCOUNTERS MAKE CONCESSIONS TO ENHANCE THE VALUE OF PRODUCERS’ WORK
To better value the work of producers, Lidl has launched its tripartite contract, a commitment to marketing products that are interesting for the company, the consumer and the breeder.
Signed directly with the actors of the different sectors, the fruits of this contract are products that display the fair remuneration of the breeders as a key argument, with a photo of the latter. Responsible products, “at Lidl prices” and with an important traceability.
HELPING FARMERS TO PROMOTE THEIR PRODUCTS
Intermarché has also launched its private label initiative advocating fair remuneration for producers, “Les éleveurs vous disent MERCI!” The products also proudly display photos of partner farmers.
The communication is as transparent as possible: the price of the raw material is displayed on the packs, as well as the place where the product was processed. Inspired by “C’est qui le patron?!”, Intermarché also displays its “maximum recommended price”. Thus the liter of milk is sold 0,88€, including 0,44€ for the producer, against 0,99€ and 0,39€ for the flagship product of the competing brand.
The French remain resistant to change, but their expectations of the sector’s players are well established
%
of French people think that responsible consumption requires too much effort and changes on a daily basis
%
of French people do not intend to increase their budget for responsible food consumption
%
of French people expect food companies to do more to offer more responsible products
The pandemic has forced the French to adapt, for example to compensate for stock shortages and avoid the most crowded circuits. This crisis has allowed some people to change their practices, to become aware. But if many French people want to go back to their habits, they expect a lot from their usual contacts.
Pagamon is a strategy and transformation consulting firm founded in 2013. We support major players in the industry, services and life sciences sectors in their search for balance. Helping them structure their strategic vision, transform their operational and/or digital model, and drive change. To support profitable, sustainable and responsible growth. As a committed player, Pagamon leads the Observatory of the Balanced Organization™, articulated around a “think tank” and an annual survey. In order to provide an innovative, sometimes offbeat, perspective on the strategic support of transformations to support the growth of companies.