The French economy recovered steadily from the global economic crisis and registered GDP growth of 1.7% in 2011, which was attributed to the growth in the country's industrial and service sectors. During the year, the GDP growth, rise in exports and increase in tourism had a positive effect on the French foodservice industry, which was estimated to value €67.2bn.
Prior to this, a contraction in the French economy and subsequent reduction in demand led to a 1.86% decline in the French foodservice industry in 2009. In contrast to the review period, the French foodservice market is anticipated to grow steadily between 2011 and 2016, reflecting higher foreign direct investment (FDI) inflow, growing exports, increases in disposable incomes, stabilized consumer confidence and a demographic shift towards single-person households in the country. However, the French government's deficit cuts, public debt, inflation and the Euro-zone debt crisis could impede growth during the period.
In 2011, the foodservice profit sector in France accounted for €59.98bn or 89.3% of total foodservice sales, and recorded a CAGR of 0.87% during the review period. Within the French foodservice profit sector, the restaurant channel contributed to 56.8% of total French foodservice sales and valued €38.2bn in 2011. Prior to this, the French government reduced value-added tax (VAT) from 19.6% to 5.5% for all food and beverage outlets in July 2009, which stimulated the growth of the restaurant channel and prevented an estimated 25,000 restaurants from closing. However VAT has been increased to 7% in January 2012 for food provided in restaurants.
Download this free white paper from Canadean to find out more.
Thank you.Please check your email to download the white paper.