Overview-France’s $6 bln halal food market opportunity

France’s 6 million Muslims spent $6 billion on halal food & beverages in 2014. Halal is increasingly becoming available in supermarkets and national halal brands are beginning to emerge. What are the opportunities and considerations for new players eyeing the French halal food market?

France has the largest proportion of Muslims among the countries of the European Union. The country’s estimated 6 million Muslims (just under 10 percent of the country's population) spent around $11 billion on food & beverages in 2014, representing 6 percent of total F&B expenditure in the country, according to ICP data and DinarStandard estimates. 55 percent, or $6 billion, of this total was spent on halal F&B.  

LANDSCAPE AND KEY PLAYERS

Neighbourhood shops are important distributors of halal products in France, says halal market veteran Bahri Ouzariah, CEO of halal food producer Oriental Viandes Group. 80 percent of the overall halal market value,  he says, is based on weekly household food shopping, with the remaining 20 percent going into the food service sector to supply restaurants, schools, hospitals or prisons.

Describing the distribution landscape of halal products, Ouzariah explained that there are three types of retail outlets for halal, “Firstly, the traditional family butchers that have always been frequented to buy halal meat and chicken, and then there is the next generation of these shops that have expanded to become neighbourhood ‘oriental’ supermarkets with an extended range of products aimed at the Muslim shopper, and then there are the hypermarkets with both branded and private label products.”

Three wholesalers supply the majority of the independent neighbourhood butchers and independent ethnic supermarkets: Sébiane, Douania and market leader Feder with over 1,000 small retailers as customers.

The leading halal sector brands include Isla Délice, Oriental Viandes, Réghalal, Isla Mondial, Medina, Saada, and Douania, all of which have established their brands locally.

Isla Délice is the leading manufacturer focussed on the Muslim markets, with 47.1 percent share of the meat delicatessen category and 37.9 percent of the frozen halal meat market segment, according to research in 2014 by the Paris Office of the Irish Food Board. The company enjoyed over 17 percent sales growth between 2013 and 2014.

However, leading grocery retailer Carrefour and discount chain Casino are beginning to carry halal products, including introducing their own halal brands and competing with both traditional small retailers and halal food manufacturers.

Such a move could threaten existing market players, but, says Ouzariah, “The hypermarkets’ own brands have had only limited success, as Muslim shoppers prefer to buy brands rather than private label products.”

CONSIDERATIONS

There are a number of key considerations to ensure success for newcomers entering this market.

Understand who the key certifiers are and which practices they accept. For a new manufacturer, understanding the French halal certification is a major issue and differs from other countries.

The three major mosques of Paris, Evry and Lyon are the only bodies designated by the government to appoint competent halal slaughtermen and they have their own certification agencies. But any private agency can be set up to act as a certification body. Neither the mosque-affiliated or private agencies accept stunning, which is still permitted in the UK.

Customers look for halal logos and while they may not understand the nuances of the different certification agencies, they want to see proof of halal compliance on packaged products.

There is likely to be an adverse reaction to halal from the general public following the recent terrorist attacks, especially in the neighbourhood oriental supermarkets that are generally frequented by a culturally varied clientele. These shops have experienced some downturn, but this is expected to be short-lived. However, it does support the general view that socio-political issues and Islamophobia can have an impact on the halal sector under certain conditions.

French consumers are very particular about their food and have exceptionally high standards. France has a global reputation for excellent food and a population (both immigrant and local) with a highly refined sense of taste. Anyone entering the halal food sector in the country needs to get their formula for success right on target.

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