Despite falling inflation, the economic climate remains challenging for French consumers. As a result, household spending on FMCG remained flat in 2024, with growth of 0.3%, according to Kantar Worldpanel’s new Perspectives 2025 consumer report.
While deflation has been in play since June 2024, FMCG prices remain above 2022 levels, meaning consumers are not yet feeling the effects of lower costs. Factors including economic uncertainty, gloomy weather and long-term trends like declining birth rates have also prevented a rebound.
A shift towards more modest spending
Shopping habits formed by French consumers over the past two years of inflation have persisted, and they continue to actively seek the best prices, promotions, and bargains.
According to Worldpanel, total household FMCG spending across all retail channels – hypermarkets, supermarkets, convenience stores, discounters, drive-throughs, and specialised stores – fell by 0.9% between 2023 and 2024.
The social divide in spending habits is widening. Blue-collar workers, farmers, middle-income professionals, and families with children have reduced their spending by 3.2%, while wealthier households have increased theirs by 0.6%.
Beverages and beauty feel the impact
While consumers are shopping more frequently, they are buying fewer items per trip. With 20% of households struggling to make ends meet, expenditure on food, in particular, has become a key area for budget adjustments.
Branded products are taking the biggest hit, as French consumers continue to favour private-label goods, which now account for nearly 40% of the FMCG market.
Consumers’ interest is growing in meal ingredients, indulgent treats, energy-boosting products, and personal care items, reflecting a greater focus on home life and comfort.
The most significant declines in spend during 2024 were in:
- Beverages (-3.4%), including soft drinks (-5.1%), alcohol (-1.8%), and bottled water (-2.7%)
- Beauty and hygiene products (-3.4%)
- Cleaning products (-1.8%)
- Fresh products (-1.5%).
The drugstore, perfumery and hygiene (DPH) sector is struggling following the Descrozaille law – aimed at achieving a better balance of power between retailers and suppliers – which has limited promotional activities.
On the other hand, there is a slight recovery in demand for sustainable products, with spending in this category rising by 0.2 percentage points to 21%. Spend on organic products is still declining overall, but the second half of 2024 shows signs of a turnaround, with consumption value increasing by 0.7%.
More winners than losers among France’s retailers
Generalist retailers are seeing the largest volume declines (-1.1%). Hypermarkets and supermarkets have lost market share, while e-commerce is thriving, reaching a 10.3% share (+0.7 points). Convenience stores are also performing well, gaining 0.2 points to reach 7.8%, partly due to the consumption boost provided by the Olympic Games. Specialised retailers had an excellent year, with sales up 4.3% in value.
This reflects an ongoing market fragmentation. Consumers are hunting for bargains in specific product categories, as demonstrated by discounter Action, which attracted nearly 10.5 million new households in 2024. Other shoppers are prioritising value-for-money in fresh produce, and have turned to Grand Frais as an alternative to traditional supermarkets, which are perceived as lower in quality.
A major shift is underway in the French retail sector, with around 700 stores either rebranding or repositioning their pricing strategies. Consolidation seems inevitable as retailers strive to maintain profitability amid declining household consumption.
The decline of Casino’s hypermarkets and supermarkets, as well as Cora’s hypermarkets, has benefited their competitors. E.Leclerc remains dominant, holding 24.2% of the market (+0.6 points) despite not expanding its store network. Carrefour gained momentum following its acquisition of Casino’s stores, growing its market share 0.8 percentage points to reach 20.6%. Les Mousquetaires (Intermarché) gained 0.9 points, reaching 17%. Lidl’s strong end-of-year recovery signals a promising outlook for 2025.
This year, FMCG brand manufacturers must find ways to restore French consumers’ desire to consume, through strategies such as affordable offerings, reconnecting with shoppers, and exploring new channels to expand their presence.
Click here to download our infographic illustrating the 10 key figures in the French FMCG market from 2024, and reach out to our experts for further analysis.