Consuming locally produced food: trends

This craze for local consumption is not decreasing, on the contrary, it is strengthening and developing.

How to define “local products”?

Representing a market of approximately 40 billion euros in 2019, including 8 billion under labels (PDO, AOC, PGI, TSG, and Label Rouge)(1), local products are still under-represented on supermarket shelves. How can retailers meet this growing demand for local products? Why this desire to consume local products? At what price?

In the absence of a regulatory definition, "locally produced" is translated in many ways: if the product comes from the village, the city, the region, prepared or not in a traditional way, meeting the requirements of certain labels, etc.

For supermarket chains, the perimeter differs: Casino guarantees a supply within 80 km of the store, E.Leclerc defines a perimeter of 100 km, it can be up to 640 km in the USA.

On the consumer side, 93% define a local product as one that is harvested/manufactured close to home:

• For 32%, it is a product made in their department,
• for 29% in their region,
• for 28% in a radius of 20 km from home,
• and for 4% in France².

A side note on so-called regional labels

Regarding labels, the PGI (Protected Geographical Indication), the AOC (Controlled Designation of Origin) are the most known quality labels at the European level. These labels guarantee that the product has been produced in a specific geographical area. Often confused with the PDO (Protected Designation of Origin), the AOC is the French version and represents a stronger anchoring on the French territory. As for the PGI, it is based on know-how, such as the Marennes d'Oléron oysters, the Collioure anchovies, or the Côtes d'Armor scallops. In addition to these labels, regional brands have been developed. Enough to satisfy everyone's needs.

To deepen your knowledge of labels

Despite this lack of definition and the jungle of brands and labels, consumers are increasingly turning to more responsible, local, regional or even national products.

What about local seafood?

Buying local seafood products is not that easy. However, consumers can rely on:

• the country of origin,
• the port of landing,
• fishing areas and sub-areas.

Many possibilities making the definition of "local" complex within the seafood sector. Is a hake caught on the coast of Brittany, processed at Rungis and sold in Brittany local?

What are the main factors motivating consumers towards a more local purchasing patterns?

Freshness, traceability and quality allow consumers to have confidence in local products, confidence that guides their purchases.

• Ensured freshness: the notion of freshness is linked to the geographical proximity of the production area and the reduction of intermediaries. 

• A more reliable traceability: the proximity with the producers reassures on the fact of being able to acquire information in a simple, fast and comprehensible way.

• A better remuneration of local producers: eating local food is perceived as a positive action for society. Today, 63% of French people say they consume as much as possible local products to support the local economy (3).

• A gesture for the environment: by orienting their purchases towards local products, consumers want to ensure that they are making a responsible purchase, for example by taking into account animal welfare, minimizing their impact on plastic pollution through packaging, reducing the carbon footprint linked to transport, consuming in season, etc. This is the case of Intermarché, Auchan, Leclerc, Carrefour, etc. who now offer sustainable and seasonal seafood products.

82% of French people say that what pushes them to go to one brand rather than another is being able to consume locally, to eat better and also to have access to the traceability of products (4).

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In spite of these motivations, local sourcing does not systematically appear to be a priority within the retailer brands. Why not?

What are the obstacles faced by supermarkets in responding to this new, more local purchasing pattern?

Despite the motivations outlined above, consumers are more demanding of local products and are divided into 4 expectations:

• Nearly 60% expect more information on manufacturing, composition,
• 57% more proof of the product's origin,
• 36% more information on the history of the product,
• 28% on the societal aspect (brand involvement in events).

How can we ensure this transparency and dissemination of information within the brands?

The absence of a clear definition for the local purchasing strategy leads to a lack of knowledge and dispersion on this topic.

Up to how far away is a product defined as local? Does local have to be respected all along the chain, from production to consumption? Does this apply to all sectors: seafood, fruit & vegetables, groceries?

Once defined, local products can be standardized, monitored and supervised and thus be more easily represented within the retail chains.

"Local consumption is a clash between two structurally incompatible worlds, and it will only become the norm when they manage to connect, which will only happen if each takes a step towards the other to transform itself.”(5)

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Retailers who wish to bring more local references to their shelves must ensure:

• a constant supply from the producer,
• the maintenance of quality,
• and price stability.
  

But how to ensure these supplies, while respecting these 3 main criteria?

Technology can be used as a tool to enhance capabilities in the following areas:

• Stock management: stocks managed central offices can be digitized and analyzed to anticipate the different needs per store, per season, to adjust supplies from one month to the next, and thus make the purchasing process more fluid
• Traceability can be followed digitally, allowing the transmission and transparency of information to consumers
• Logistics: by optimizing each link in the chain (centralization, digitalization, etc.), which will notably reduce the carbon footprint of each warehouse. For example, Franprix has introduced delivery by boat in the Paris region.
• communication, by simplifying end-to-end exchanges of information between departments.
  
  

By developing more and more their CSR strategy, retailers also want to show their strong commitment to preserve the environment, promote their region and meet consumers' expectations. With this new approach, retailers aim to:

• respond to the consumption trend of their customers,
• broaden the offer and produce fresh products on site,
• be actors in the development of the local economy,
• create a local ecosystem,
• promote local products and producers,
• make their values spread at the regional level.
  

Today, awareness is global, from the producer to the consumer, through the distribution networks. Technology now makes it possible to interconnect all the players in the sector and to considerably enrich the information (origin, quality, composition, etc.) linked to the product. Everything is in place to promote and build the industries of tomorrow.

95% of French people say they are ready to go to stores that offer them local products at an affordable price. Why not be one of them?

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1: “ La grande distribution met les bouchées doubles sur le local et le régional “, XERFI, 11/01/21

2: “ What French people think of retailers ?”, Ecommercemag.fr, 23/11/19

3: Study on the attractiveness of "local products" carried out by Ifop, 06/19

4: “Shopping during the pandemic, a global advisors survey”, IPSOS, 21/01/21

5: « Why local products are not yet the norm in our supermarkets », LSA, 07/2021