REGENERATIVE PRODUCTS IN FRANCE market brands ecosystem
1- French market
Environment is no longer a top concern in France Social issues such as the price inflation impacts and age of retirement are the #1 concern however the hot spring & summer and lack of water are a recurring topic of concern as well as biodiversity losses (but less).
Same for USA
Consumers cutting on organic yet still caring for health and environment
Organic food consumption is recording a general decline in sales (-8% in 2022 compared to 2021).
In 2022, in the face of inflation, French food expenditure fell by 4.6%.
-In a strong inflationary context, consumers turn to cheap products and abandon the organic offer at higher prices. -The organic segment also faces increased competition from other labels and mentions : quality and origin signs (PDO, PGI, red label), "free" mentions, the nutriscore, or quite simply the
-The reduction in the consumption of traditional fresh products: -5.6% decline in purchases of Traditional Fresh Products. A particularly noticeable reduction for animal proteins (fish, meat) - Limiting waste remains the first intention of the French for the coming months so as not to throw money out the window: 48% of French households - Private labels have gained 2.5 points of market share. Less than half of households now say they place "a lot of importance on the brand". Kantar
purchase local rather than organic. - Consumers favor local alternatives. Source
- French are not cutting corners on the quality of their plates. Indeed, the criterion "good for health" is the second criterion for choosing a product behind the price/promotion item", emphasizes Kantar. -In addition, they maintain their budget devoted to products committed to preserve the environment (22.3% of expenditure) even though organic is down. Kantar (*confirmed 1st Q2023) More positively, in France the group of eco actives remains stable in 2022*
Organic sales are down for 2 reasons
Consumers question the reality of (industrial) organic
Poor value for money
Sales drop started in 2021. Its in supermarkets, where the horizon for the democratization of organic seemed to be emerging but where price competition is the strongest, that the drop in consumption was the most significant in 2021 (drop 3.9% between 2020 and 2021 and 7.6% between July and end of August 2022). Its consequences are the delisting of many organic products and their lower exposure.
Eating well is a matter of respect for oneself, nature and producers If pleasure of the senses remains associated to “eating well” by 27% of French people, health concerns ranks first. Thus, 41% bring the “eating well” of a balanced diet and 34% from a diet that does not carry damage to health 22% of French people consider that "good eating" is above all a diet that does not does not harm the environment.
#2 #1
#3
Furthermore, 69% of French people say they are vigilant about the process of production that respects the environment and animal condition. 14% mention producers first.
Organic and local is the new normal
2 retailer’s strategies emerge with impacts on regenerative brands NATURALIA broadening the appeal of organic : PLEASURABLE HEALTH BIOCOOP playing organic as a lifestyle with ”cut the bullshit” tone of voice
WHAT IT MEAN ? - Developing the principles of agro ecology (interest in alternative approaches such as regenerative organic ) - More local products - Reducing impact environmental in controlling carbon footprint
WHAT IT MEAN ? According to Biocoop, talking about agriculture while forgetting the chemical treatments part is the wrong approach. One can't talk about biodiversity while still authorizing chemical inputs killing biodiversity. improving the biodiversity of soils and farms. They are implementing biodiversity measurements on their farms to track biodiversity improvements. According to Sylvain Ferry from Biocoop
Brands are promoting regenerative agriculture in stores, not retailers None of the players is helping shopper navigate even natural retailers, not even Potager city distributing Omie. Only of the natural retailers is promoting regenerative agriculture outside the store : “pour le climat” (small store)
Whole foods and Erewhon promoting regenerative agriculture
Retailers engaging consumers in the agroecological transition In a context where food safety, the origin of products or even relations with the agricultural world have become major issues, Carrefour has embarked in 2018 on a strategy to transform its model, on a global scale, to respond to new food issues and new consumer expectations. Program is still active today. Carrefour will publish on line the Nutri-score of it’s products and will require planet-score on products.
2- Brands
Regenerative brands deliver ecosystem services Regeneration aims to give all living beings (including humans) the resources needed to reach their full potential in their environment. It builds on circular economy -moving from a take-make-waste linear economy to a circular economy leaves more room for nature to thrive, but it goes further to give back to nature more than what was taken through natural processes, assisting nature regeneration.
HEALTH
PRODUCT CLAIMS IN FRANCE : CLIMATE, SOIL, BIODIVERSITY, NUTRITION, FARMER COMPENSATION, TAKING CARE OF EMPLOYEES
LIVING BEINGS In their biotopes
= form local ecosystems Ecosystems are formed by natural environments called biotopes and by a community of living beings called biocenosis.
Millenium Ecosystem Assessment
Soil conservation practices make it to the front of packs without regenerative agriculture certifications Brands are starting to communicate about soil conservation practices however none is using the ROC certification carried by Ecocert in France.
…and more often on the back, not called “regenerative agriculture”
Most of the brands certified regenerative through ROC or land to market.
Sustainable brands with positive impact in France focus on :
ORGANIC IS THE COMMON DENOMINATOR FOR THIS NEW CATEGORY
VITALITY
BIODIVERSITY
SOCIAL IMPACT
NUTRITIONAL QUALITY
SOIL
CLIMATE
More products claiming nutritional density
Organic is the new normal but no longer self sufficient Products often carry 3 certifications. New certifications extending beyond organic basic claims popping in shelves..There is an opportunity to position organic standards as a minimum guaranteed and intensify organic environmental, local and social claims.
The 3 pillars of sustainable brands in France
ORGANIC
GOOD FOR ME AND THE ENVIRONMENT
FAIR
A matter of brand ethics and values to be delivered at 360°
For consumers a way to preserve their health and nature
Fair for producers
Biodiversity in crisis, we are what we eat !
Committed to the skin and the p la n e t? ECLO is a demanding and uncompromising brand:
Alter. Eco is committed to its producers Alter Eco is commited to small producers in the South in particular through the fair price paid to them.
External sources of credibility of sustainable brands in France ORGANIC GOOD FOR ME AND THE ENVIRONMENT FAIR
certifications
scoring
certification
mobile app
third party mobile app
Omie is the perfect regenerative organic brand
ORGANIC
GOOD FOR ME AND THE ENVIRONMENT
FAIR
Omie is going to showcase more clearly “regenerative agriculture” on packs to grab consumers attention in stores
Most products playing in this category don’t tick all the boxes ORGANIC GOOD FOR ME AND THE ENVIRONMENT FAIR
Some claims made on pack rise concerns !
ORGANIC
GOOD FOR ME AND THE ENVIRONMENT
FAIR
Bonduelle is not organic Holle offsets unavoidable CO2 emissions.
Nutriscore is not the same on pack vs. yuka
Organic can be industrial
Organic is not always local
Upgraded version of planet score is holistic (and less dogmatic)* Dimensions related to the fair remuneration of producers, ultra-processing and the origin of products are to be added to the new version of the planet score.
FAIR
Upgraded version of planet score flashes out most benefits consumers want and is therefore worth exploring for regenerative brands.
ORGANIC
French consumers are very concerned about pesticides Lack of information about harmful ingredients such as pesticides is consumers main concern at purchase. Even if organic sales are going down it remains a major concern. Twice more important than French origin concerns.
Controversial agro-agricultural practices break in the media
Not ORGANIC
Not good for me or the planet
Not FAIR
EU says ‘not banning carbon offsets’ in greenwashing crackdown source
The negative externalities linked to the use of pesticides and synthetic fertilizers are numerous. Does a non-organic lettuce cost 27 times more than an organic lettuce? If the city of Munich had chosen a curative solution, to purify it would have cost 0.27 euro/m3 of water distributed, i.e. 27 times more expensive . Study carried out in 2021 by BASIC
Traces of pesticides even in industrial jelly source
"In the 1st quarter of 2023, the margin rate of the agri-food industry is 48%" according to INSEE. A historic record as shown by this graph. I confirm my previous remarks: the responsibility for food inflation is not equitably distributed between actors. source
Brands communicate on their purpose to engage consumers Sharp corporate communications alongside brand communications are key for consumer trust. One major claim such as BIODIVERSITY for Danival from Ecotone group help consumers understand the reason why the company has made those agricultural choices.
3- Regenerative ecosystem
The NGO and agriculture lobbies have put the topic of the sustainable agricultural practices on the table. However, not the same topics
ENVIRONMENTAL IMPACTS IS THE TOPIC The “soulèvements de la terre” (Earth Uprisings) is a movement gathering various NGO’s willing to snatch land from industrial and commercial devastation. They have conducted various mediatical non violent operations (Lafarge cement plant near Marseille - land use for constrcution, Sainte Soline - gigantic water reservoirs…) source
COSTS INFLATION IS THE TOPIC Fruit growers mobilized to save their sector in the face of rising production costs and rising foreign competition. FNSEA main source
Agro industrial companies are clear headed about regeneration as a sustainable agricultural practice even for farmers
Will the earth have the necessary resources? Yes, says Gaëlle Le Gélard of the Ellen MacArthur Foundation. But on condition of reviewing the food system which is based mainly on 4 plants: corn, wheat, rice, potato while thousands exist. Intensive monocultures are the starting point of a system that is devastating to the environment: that of inputs and impoverishment of the soil. "The benefits of regenerative agriculture are multiple," says Felipe Villela, who notably cited the reduction of inputs and water needs thanks to plant cover, or the possible gain in income by the introduction of new crops. The potential for an increase in the price of finished products would be "5 to 15%", according to the co-founder of Renature. F or Sandrine Sommer, head of the sustainability department for the Moët Hennessy group, “this type of organic agriculture must be economically viable for producers, otherwise it could not be sustainable”.
change now round table
Provided that the consumer is educated to recognize and consume the products resulting from this mode of production, added Elizabeth Whitlow, executive director of the Regenerative Organic Alliance.
What’s not clear is if regenerative is regenerative organic !
For LVMH group regenerative is organic “We are very happy to support the Vallée de la Millière association (practices based on permaculture). This reserve is an exciting laboratory of regenerative agriculture techniques and environmentally friendly practices that we are committed to developing in order to allow the advent of sustainable luxury”. source
Pernod Ricard has set objectives for both biodiversity and carbon reduction however regenerative agriculture will only address carbon “Local regenerative agriculture to capture more carbon in the soil. Cases studies to be shared with the wine sector. source
California begins groundbreaking effort to define regenerative agriculture (source)
Agriculture experts are not 100% aligned with regenerative terminology Biosphere Various comments under Bel regenerative agriculture partner on their linkedin posts. “You can go on and on about regenerative agriculture without talking about biodiversity or Regenerative agriculture, watch out for greenwashing! Warns Inrae Agroecology could help to clarify the still unclear content of regenerative Inrae
environmental impact. But please do not talk about regeneration and do not appropriate regenerative agriculture which covers much more than your approach which covers so little. Your approach is marketing. Thank you to the partners who have understood the real issues of biodiversity, global health and the balance of soil life and who are not afraid to talk about subjects that you soberly call "inputs". Not everyone is for a break from the health and quality topics that concern us all… source and source
agriculture so that its promises can be translated into real progress and may be not exclusively carbon-centered. source
Bayer Bayer plans to shape regenerative agriculture on more than 400 million acres (or approximately 1.5 million km2) by 2035 to explore carbon sequestration while feeding the world.
THANK YOU….
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