More than one in three French people want to buy more local products
Under house arrest for several months since March 2020, the French have turned to local consumption. According to a new study by IRI, an institute specializing in the analysis of consumer product data, sales of local products increased by 6% between June 2020 and May 2021, while sales of all FMCG items rose only 2.3%.
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Faced with the health and economic crisis, the French want to give priority to producers in their region or country. "In times of crisis, we seek to protect our economy and defend our local ecosystem," said Emily Mayer, Business Insight director (business prospects) at Iri.
Local brands weigh 1.8 billion euros in France, representing a market share of 2.2% of all consumer products present in hypermarkets and supermarkets. This market share is likely to continue to grow because the French intend to buy more and more local references. According to the Iri study, 39% of consumers want to buy more local products, while 26% want to buy more organic products. The Organic Farming label remains a differentiating element of purchase but which is no longer sufficient for consumers. "We prefer to buy products from local producers rather than organic, especially if the organic product comes from abroad," confirms Audrey, 35 and mother of two young daughters.
Retail brands are mobilizing around local products
Local items also enjoy a reputation for quality. "These products are immediately perceived as being of quality without needing to be organic or healthy", highlights Emily Mayer. Sales also increased due to the increased supply in stores. “Supermarkets are developing their local product offering. There are more and more departments dedicated to it,” explains Iri's Business Insight director.
A trend actually followed by many large retailers who do not want to miss this mark in terms of demand. Monoprix notably aims to offer local and even ultra-local products in 100% of its stores by the end of the year. “To do this, we have simplified the referencing process. Store managers can source local producers themselves and offer their products on the shelves within 48 hours,” highlights Diane Coliche, Executive Director General of Monoprix. Beyond the choices made by the brands, some product categories still do not currently have a local brand, such as hygiene or beauty items. The “creamery” category including yogurts and butter includes the most local items, with 4.6% of references.
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Consumers place a lot of expectations on the behavior of retailers. According to a study carried out by Opinion Way for Apollo Plus, 39% of consumers expect greater collaboration from shopping sites with local producers. This expectation is found more strongly among men (41%) than among women (37%).
The French with high monthly incomes, earning more than 3500 euros per month, are also more attentive to it (47%). While only 32% of those earning less than 2000 euros pay attention to it. Local products are indeed 10% to 15% more expensive than the average price, which can be a barrier to purchase. “I am careful to buy local but I am aware that it is an approach mainly reserved for people who can afford it financially”, recognizes Capucine, a 26-year-old Parisian.
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