Paris: a promising market for U.S. food products

AgExporter, Nov, 1996 by Jeanne F. Bailey, Roselyne Gauthier

As interest in American culture and U.S. products is increasing in France, so is the demand for U.S. food products, especially among the younger generation.

U.S. Products Popular in France

Major changes underway in the French food market should have a positive effect on U.S. agricultural exports. For example, in calendar (CY) 1995, disposable incomes increased 4.5 percent while consumer purchasing power increased 2.7 percent compared to a year earlier.

France is the 12th largest export market for U.S. consumer-oriented goods. In 1995, the United States exported nearly $200 million worth of consumer-oriented agricultural goods such as fresh fruits and vegetables - especially tropical and exotic - fruit juices, other beverages including flavored mineral waters and soft drinks and tree nuts.

Other U.S. products popular in France include frozen foods, both ready-to-eat meals and specialty products such as pizza, ice cream, Tex-Mex products, and snack foods such as cookies, chips and nuts. Innovative dietetic and health products, organic food products, soups, seafood, wild rice, breakfast cereals and pet foods are also popular with the French.

Tex-Mex Restaurants Lasso the French

There is a growing interest among French consumers for specialty products from other cultures with distinctive themes such as the Tex-Mex, Cajun or California-style cuisines. For example, Tex-Mex food products such as salsas, refried beans, tacos and chips are major sellers whenever French supermarkets hold special U.S. product promotions.

In addition, Tex-Mex and Cajun-style restaurants are booming in all of the major French cities. In a survey conducted by the Foreign Agricultural Service's (FAS) Office of Agricultural Affairs in Paris in 1995, there were an estimated 800 Tex-Mex or Western-style theme restaurants throughout all of France, a 70-percent increase over 1994. The survey includes all of the French bars and restaurants that feature Tex-Mex food products on their menu.

In Paris alone, there are at least five major U.S. restaurant chains with booming franchises, including Chili's, Planet Hollywood, Hard Rock Cafe, TGIF's and Chi-Chi's, featuring Tex-Mex dishes on their menu.

Chili's and Planet Hollywood opened their doors in Paris within the last two years, and the managers of both restaurants have indicated that their restaurants are a success. Planet Hollywood has served about 285,000 clients since 1994, while Chili's averaged about 156,000 during the same period.

Paris Demands U.S. Dishes

The U.S. dishes in popular demand at these two restaurants in Paris are fajitas, hamburgers and brownies. Even though the meat products used originate in France, other products and ingredients including ice cream, beverages, sauces and spices are imported from the United States.

Heavy sales of Tex-Mex dishes in U.S. restaurants translate into increased demand by French consumers.They want to be able to prepare similar dishes at home. French consumers can easily find many of these same food products in French supermarkets, most of which have a small, but growing area of shelf space designated for U.S. food products.

In 1996 alone, six major retail outlets throughout France, including one hypermarket, four supermarkets and one specialty gourmet shop, launched successful promotions of U.S. food and agricultural products. The products featured at these promotions included Tex-Mex products, soft drinks and alcoholic beverages, grocery food products, fresh and dried fruits, salmon and cookies.

Tips for Tapping the French Market

Obviously, there is a strong and growing demand for U.S. food products in the French market, and the trend is expected to continue. U.S. exporters and producers who are interested in tapping into the French market should keep the following tips in mind when seeking market access for their goods:

First, select target products by conducting basic market research and by obtaining export statistics for products for at least the past five years to get an idea of the trade trends.

Next, investigate and develop resources, including the FAS' Office of Agricultural Affairs at the American Embassy in Paris, for accurate up-to-date information on local government regulations, custom duties, political climate, socio-economic factors, infrastructure, distribution channels and market size.

Give customers what they want, not what you think they desire. Adapt products to the local regulations by checking to make sure ingredients such as coloring and preservatives are permitted. Confirm package size requirements and consumers' preferences and make sure that the product conforms to the labeling requirements of France. Be sure your products are price competitive.

Identify the best distribution channel for your product by dealing directly with supermarkets, an importer/distributor or a foreign agent. Participate in French trade shows if possible to demonstrate your product.

For more information on how to access the French market, contact:

The Office of Agricultural Affairs USDA-FAS American Embassy 2, avenue Gabriel 75382 Paris Cedex 08 Tel: (33-01) 43 12 2264 Fax. (33-01) 43 12 2662