Published: April 29, 2009

Research and Markets: View Forecasts for the Food and Drink Industry in France

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(BUSINESS WIRE) Research and Markets (http://www.researchandmarkets.com/research/69643c/france_food_and_dr) has announced the addition of the "France Food and Drink Report Q2 2009" report to their offering.

BMI's France Food and Drink Report provides independent forecasts and competitive intelligence on France's food and drink industry.

French food and drink companies invest heavily in research and development (R&D) and the country is a world leader in the functional food sector. There has been speculation that the functional sector may be hit hard by the economic downturn, and this speculation was supported by Danone's decision to withdraw its Essensis skin-enhancing yoghurt brand from the French market after reporting that sales were suffering due to the global economic crisis. However, BMI would regard this development as a minor setback for a sector and our core view is that the functional food sector will outperform the wider food and drink industry in developed markets over the next five years.

This functional food sector has enjoyed a decade of uninterrupted growth. While the withdrawal of Essensis from the French market does suggest that consumers may be becoming more discerning about which functional products they buy, there is little evidence that the sector is in crisis. Indeed, BMI believes that the trend towards functional food is now so well established, and the health benefits so appealing, that the market is likely to continue to grow even if the overall market for food and drink in Europe enters a period of stagnation.

The most resilient growth during the downturn is likely to lie in the area of neutraceuticals - food and drink products sold for a specific medical purpose and often sold through chemists rather than traditional grocery retailers. The resilience of this sector has been reflected in the annual results posted by Nestlé and Danone with Nestlé's Nutrition division reporting sales growth of 7.7% and Danone's medical nutrition arm delivering revenue growth of 12.1%.

The strong prospects for this sector were highlighted by the acquisition of French functional food producer Nutrition & Santé by Japanese neutraceutical specialist Otsuka Pharmaceutical in January 2009. Nutrition & Santé is a leader in the European functional foods market with a turnover of EUR260mn in 2007 and 12 market leading brands. These include the Isostar sports nutrition brand, the Gerlinéa slimming brand and the Gerblé brand which is used to market a range of products designed to cater to specific dietary needs. Otsuka's decision to purchase Nutrition & Santé at a time when the European consumer goods market is depressed reflects the resilience of the neutraceutical sector, which has continued to grow at a time when other parts of the food and drink industry have been stagnating or in decline.

While the withdrawal of Essensis can be regarded as disappointing and suggests that firms are going to have to work harder to convince consumers of the merits of their functional products, there is little reason to think that the long-term prospects for the sector have changed. We therefore continue to hold our core view that the functional food sector will outperform the wider food and drink industry in developed markets over the long term.

Key Topics Covered:

Executive Summary

SWOT Analysis
France Food Industry SWOT
France Drink Industry SWOT
France Mass Grocery Retail Industry SWOT
Business Environment
Table: Western Europe Food & Drink Business Environment Ratings Q2 2009
France's Food & Drink Business Environment Ratings
Table: Global Food & Drink Business Environment Ratings
Macroeconomic Outlook
Recession To Last Until 2010
FRANCE - ECONOMIC ACTIVITY

Food

Industry Forecast Scenario
Food Consumption
Table: France Food Consumption Indicators - Historical Data & Forecasts
Prepared Food / Canned Food
Table: Canned Food Value/Volume Sales - Historical Data & Forecasts
Confectionery
Confectionery Value/Volume Sales - Historical Data & Forecasts
Private Label
Trade
Table: Food & Drink Trade Balance - Historical Data & Forecasts
Industry Developments
Market Overview
Food Production
Leading Players
Food Consumption
Prepared Food/Canned Food
Confectionery
Trade
Agriculture
Sugar Production
Organic Farming

Drink

Industry Forecast Scenario
Hot Drinks
Table: Hot Drink Value Sales - Historical Data & Forecasts
Soft Drinks
Soft Drink Value Sales - Historical Data & Forecasts
Alcoholic Drinks
Table: Alcoholic Drink Value/Volume Sales - Historical Data & Forecasts
Industry Developments
Market Overview
Soft Drinks
Hot Drinks
Alcoholic Drinks
Beer
Wine
Spirits
Mass Grocery Retail
Industry Forecast Scenario
Table :France Mass Grocery Retail Market - Sales By Format (US$bn) - Historical Data & Forecasts
Table: Grocery Retail Sales By Format
Industry Developments