Global Agriculture Information Network
Template Version 2.09
Voluntary Report - public distribution Date: 10/17/2006 GAIN Report Number: FR6056 FR6056
France Product Brief SWEET, SAVORY SNACKS AND SNACK BARS IN FRANCE 2006
Approved by: Elizabeth B. Berry U.S. Embassy Prepared by: Roselyne Gauthier Report Highlights: In 2005, the Frenchsweet and savory snack market was estimated at $1.14 billion, with annual growth of three percent. Snack bar sales in France totaled $133 million, with annual growth of four percent. Imports of these products to France has increased 14 percent over the last three years. Although the U.S. market share is very small, strong growth opportunities do exist for breakfast bars, nuts, chips/crisps andextruded snacks provided US suppliers offer healthly and innovative products with attractive and convenient packaging.
Includes PSD Changes: No Includes Trade Matrix: No Unscheduled Report Paris [FR1] [FR]
GAIN Report - FR6056 Average exchange rate for calendar year 2005: USD 1 = 0.8038 Euros Source: Central European Bank SECTION I. DEFINITION & MARKET OVERVIEW 1. Definition
Page 2 of 10Snack products include all foods which do not need to be consumed at a table and are generally eaten between regular meals or as a meal replacement (i.e. finger foods). Snacking in France is a growing phenomenon and is gradually becoming a more common part of French eating habits. Busier lifestyles and demographic changes have fueled growth in snack products in a large range of foods, such as sweetproducts (confectionery and snack bars) as well as certain types of bakery products and sweet and savory snacks. Dairy product sales have also increased, especially for cheeses, as well as yogurt drinks. French consumers purchase practical, easy-to-eat, and diversified products offering good nutritional value. In response, French manufacturers offer solid, practical and lightweight individualportion packages, sometimes presenting several compartments to combine different types of snacks in the same product. While the French snack market can be divided into four ma jor categories: (1) bakery products (biscuits and cakes); (2) sugar and chocolate confectionery; (3) sweet and savory snacks, and (4) snack bars; this report will address the two categories offering the greatest potential for U.S.exporters: sweet, savory snacks, and snack bars. (Please refer to GAIN ____ for a report on the sugar and chocolate confectionery sector) which can be found at http://www.fas.usda.gov/ 2. Market Overview The French snack food market sector for sweet and savory snacks, and snack bars is estimated at $1.3 billion, and is growing at a rate of 3.5 percent yearly. In 2005, France imported $3.6 billionof these snack food products, a 14 percent increase over the last three years, primarily from Germany, Belgium and Italy. Imports from the United States represented only 0.4 percent ($14 million) of the French imports. U.S. exports of sweet and savory snacks face stiff import challenges due to a strong domestic and intraEU manufacturing industry, high transport costs and significant tariffs.French exports of sweet and savory snacks and snack bars in 2005 amounted to $3.2 billion, mainly to Germany, the United Kingdom and Belgium. 3. Advantages, Opportunities and Challenges Facing U.S. Snack Foods in France Advantages/Opportunities Busier lifestyles and demographic changes fueling growth in snacking and single-useformats The United States offers a variety of new innovative products, whichFrench consumers are looking for. Fascination with American culture (music, movies, fashions) carries over to related Challenges Adapt U.S. products to French consumers' needs regarding practicality, variety, quality and packaging. Domestic products and intra-EU imports dominate the supply chain. Therefore, U.S. suppliers must offer high-quality and innovative alternatives, at competitive...