Consumer Lifestyles in France

8/19/2019 Consumer Lifestyles in France

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CONSUMER LIFESTYLES IN

FRANCE

Euromonitor International

September 2015


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C O N S U M E R L I F E S T Y L E S I N F R A N C E P a s s p o r t I

© E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLESLifestyles in France ...................................................................................................................... 1

Chart 1 Lifestyles in France ...................................................................................... 1 Top Five Consumer Trends .......................................................... ................................................ 1

Sharing Economy Takes Off for French Consumers ................................................ ................ 1 Consumers Manage Energy Consumption To Save Money ..................................................... 2 Consumers Turn To DIY Beauty and Kitchen Equipment As Part of ―fait Maison‖ Effect ......... 3 French People Continue To Travel – But Keep Costs Down .................................................... 4 Children in France To Learn on Tablets at School.................................................................... 4

Consumer Segmentation .............................................................. ................................................ 5

Babies and Infants ......................................................... ........................................................... 5

Chart 2 Babies and Infants in Focus 2000-2020 ....................................................... 5

Kids ............................................................. .............................................................. ................ 6

Chart 3 Kids in Focus 2000-2020 .............................................................. ................ 7

Tweenagers ........................................................ ................................................................. ..... 7

Chart 4 Tweens in Focus 2000-2020 ........................................................ ................ 8

Teens ....................................................... ................................................................. ................ 9

Chart 5 Teens in Focus 2000-2020 ........................................................... .............. 10

Young Adults .......................................................................................................................... 10

Chart 6 Young Adults in Focus 2000-2020 ............................................................. 12

Middle Youth ....................................................... ................................................................. ... 12

Chart 7 Middle Youth in Focus 2000-2020 ........................................................... ... 13

Mid-lifers ............................................................. ................................................................. ... 13 Chart 8 Mid-Lifers in Focus 2000-2020 ................................................................ ... 14

Late-lifers ............................................................ ................................................................. ... 15

Chart 9 Late-Lifers in Focus 2000-2020 ............................................................... ... 16

Housing and Households ........................................................................................................... 16

Home Ownership ................................................................................................................. ... 16

Chart 10 Home Ownership 2000-2020 ..................................................................... 17

Household Profiles.................................................................................................................. 18

Chart 11 Household Profiles 2000-2020 ................................................................ ... 18

Running Costs ........................................................................................................................ 19

Chart 12 Household Running Costs 2000-2020........................................................ 20

Money and Savings ................................................................................................................. ... 20

Attitudes Towards Payment Methods ............................................................ ......................... 20 Savings ............................................................... ................................................................. ... 21 Loans and Mortgages ............................................................................................................. 21

Chart 13 Borrowing and Saving 2000-2019 ........................................................... ... 22

Eating and Drinking ...................................................................................................... .............. 22

Eating Habits .......................................................................................................................... 22

Chart 14 Food Expenditure Profile 2000-2020 ....................................................... ... 24


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C O N S U M E R L I F E S T Y L E S I N F R A N C E P a s s p o r t II


Drinking Habits ....................................................................................................................... 24

Chart 15 Drinks Expenditure Profile 2000-2020 ........................................................ 25

Grooming and Fashion ............................................................................................................ ... 26

Female Grooming and Fashion Trends .................................................................................. 26 Male Grooming and Fashion Trends ...................................................................................... 27

Chart 16 Grooming and Fashion Expenditure 2000-2020 ......................................... 28

Health and Wellness .................................................................................................................. 29

Attitudes To Health and Well-being ........................................................................................ 29

Chart 17 Health of the Nation 2000-2020 .............................. ................................... 30

Shopping Habits ..................................................... ................................................................. ... 31

Main Household Shop ............................................................................................................ 31 Shopping for Big-ticket Items and Personal Goods ................................................................ 31

Chart 18 Where Households Shop for Essentials 2000-2019 ................................... 32

Leisure and Recreation .............................................................................................................. 33

Holidays .............................................................. ................................................................. ... 34 Public Holidays, Celebrations and Gift-giving ........................................................... .............. 34

Chart 19 Possession of Selected Home-Tech and Mobile Phones 2000-2020 ......... 35

Getting Around ........................................................................................................................... 36

Private Transport ................................................................................................................. ... 36

Chart 20 Getting Around on Private Transport 2000-2020 ........................................ 36

Public Transport...................................................................................................................... 36 Commuting ............................................................................................................................. 37

Chart 21 Getting Around on Public Transport 2000-2020 ......................................... 38


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C O N S U M E R L I F E S T Y L E S I N F R A N C E P a s s p o r t 1


CONSUMER LIFESTYLES IN FRANCE

LIFESTYLES IN FRANCE

Chart 1 Lifestyles in France

Source: Euromonitor International

TOP FIVE CONSUMER TRENDS

Sharing Economy Takes Off for French Consumers

As a result of the financial crisis, and thanks to increased connectivity across France,

consumers are taking to the idea of a sharing economy with enthusiasm. According to a study

for Le Figaro published in July 2015, 22% of French people have already used a service such

as Airbnb and lift-sharing service BlaBlaCar and almost a third of French people plan to in the

next 12 months.

BlaBlaCar is a French-born service which allows people to join up, post journeys they are

making on the site and fix a price for passengers wanting to travel the same route. The idea for


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drivers is to cover petrol money, be more environmentally friendly by sharing the vehicle, make

friends and for passengers, to maintain the flexibility of car travel without having to own a

vehicle or drive alone.

Airbnb has taken off significantly in France, with Paris overtaking New York in terms of

numbers of subscribers. Increasing numbers of people are using the site both to rent out theirown property and find low-cost accommodation that allows them to live like locals when they

travel. Uber, the smartphone app for finding a lift by car has also become popular – according toLe Figaro, Paris is the second city in Europe for the service. However, UberPOP, a type of taxi

service provided by private individuals, has not been successful. Following riots involving

licensed taxi drivers, the service was suspended in June 2015, according to Le Monde.

Sharing accommodation is becoming more popular too. In the past, students and young

professionals have typically lived alone in self-contained studio flats, but increasingly people are

grouping together to rent larger houses and apartments. The website Appartager.com puts

home seekers in touch with sharers, allowing them to cut living costs and live in more spacious

accommodation.

The survey showed that young people (between 18 and 24) are the biggest users of car-

sharing services, house shares and services like Uber – 36% of this age group use them. Oncethey have tried them, they usually become regular users.

According to the report, the French are mainly in support of the sharing economy, with 82%

agreeing that it is ―revolutionising the way we consume goods and services‖ and 80% said thatthey make life easier. Some 82% also said it was better to encourage the sharing economy than

to try to block it.

The buying and selling of used goods is also becoming popular in France. The online

marketplace Le Bon Coin is one of the top 10 most visited websites in the country, attracting

buyers and sellers of everything from toy cars to five-bedroom houses. The site is free to post

on and buyers contact sellers directly, often looking for items in their area so they can collect

them in person, and prices are agreed between buys and sellers – and unlike eBay, there is no

auction function.

Consumers are also enthusiastic about the sports and leisure store Decathlon‘s regularTrocathlon events. People bring second-hand goods to be sold by the store, and receive their

payment in Decathlon vouchers. A new online version has recently been launched in response

to consumer enthusiasm for used goods.

Consumers Manage Energy Consumption To Save Money

French people are keen to reduce the energy consumption in their homes, according to a

study published in April 2015 by the Agence de l‘Environnement et de la Maîtrise de l‘Énergie

(ADEME). In 2014, three quarters of French people said they would like to cut down on energy

use.

The study showed that 44% of people always reduce the temperature of the heating in their

home to save energy, while 29% did so occasionally, and 38% said they always turned off their

electrical appliances completely whenever possible, to save energy, according to Financement

Participatif France‘s Baromètre 2014. Around a third said their home was not sufficiently insulated against the cold and the heat,

and 38% said they needed to carry out work to improve the insulation of their homes. However,

many people feel that the expense of insulating their home is off-putting.

A separate article on acqualys.fr, a portal specialising in sustainable housing, said that most

people‘s decisions when it comes to energy and environmental matters were linked to the

potential for tax credits. The government offers a variety of tax credits for various environmental

improvements, as well as 0% interest loans and other financial incentives. Insulation of roofs

and exterior walls, double-glazed windows and other improvements are all potentially eligible for


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some form of financial aid, although the criteria are strict and in certain cases tradesmen

carrying out the work must be accredited by specific organisations.

A separate study, carried out annually by Le médiateur national de l‘énergie, showed that in

2014 French people were interested in the idea of managing energy consumption better, having

faced rising energy prices in recent years. Around 40% of households restricted the use ofheating, and more did so among the over 65s (47%). A quarter of households said they had

reduced the temperature of the heating in their homes in order to keep bills to a minimum. The

energy market opened up to competition in France in 2007, and consumers can now choose

who they buy their gas and electricity from. However, only 1 in 10 households has made the

move to a new supplier.

One of the main incentives for reducing energy use is the save money – the average French

household spent €1,950 on energy consumption in 2014 – but reducing waste is also becomingan important factor, and not just in energy consumption.

A separate study in April 2015 by the Commissariat général au développement durable

(CGDD) on attitudes to sustainability showed that 43% of households believed that responsible

consumption was linked to combating waste while 36% said it was about buying locally.

Consumers Turn To DIY Beauty and Kitchen Equipment As Part of ―faitMaison‖ Effect

French homes tend to be extremely well equipped when it comes to larger home appliances,

but currently people are attracted by smaller items that allow them to carry out grooming

treatments in their own homes or make certain foods at home, in l ine with France‘s ―fait maison‖or ―home made‖ trend.

Under the current economic conditions, consumers are not inclined to replace large electrical

items such as fridges, washing machines and cookers until they have to – according to an

article in 20minutes.fr, 52% of people wait for their equipment to break down before they replace

it. But they are tempted by smaller gadgets that will make their lives easier, particularly when it

appears that there are longer-term savings to be gained.

Light-pulse hair removal systems are very popular. These offer permanent hair removal and

women are attracted to them as they promise long-term savings, reducing the need to visit the

beautician or dermatologist. The items they purchase are semi-professional, and consumers

hope to get the same results that they would in a salon at a lower overall cost.

Men have been buying beard trimmers in line with the current trend for full beards to reduce

the need for shaving daily. While more consumers have been going to the barbers, many men

are also equipping themselves so they can trim their beards at home, both as a way to save

money over the long term, and because of the convenience of having the equipment in the

home.

Smaller electrical kitchen items such as multi-function food processors and heating blenders

have been very popular as have multi-cookers, and consumers have also been buying deep fat

fryers. Multi-function kitchen items such as the Thermomix have also been attractingconsumers‘ attention. Although their relatively high price can be a barrier, a lot of consumers are

interested because of the perception that they will be a good long-term investment, allowing

them to save money on processed foods and having to buy separate pieces of equipment.

People are keen to buy fresh ingredients and make their own juices and soups while using

equipment that makes the job easier. Home cooking items such as these allow people to make

foods they enjoy, such as hand cut chips, in their own homes and allow people to control the

quantity, manner of cooking and, most importantly, the cost.


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French People Continue To Travel – But Keep Costs DownFrench consumers are keen to travel, but financial pressures mean they are increasingly

looking for cheaper ways to go on holiday. Almost two thirds (63%) of French people plan to go

on holiday in 2015, an increase of five percentage points compared with the previous year.

However, the budget for holidays has slightly reduced to €2,180 according to a survey publishedin France Info in June 2015.

People are choosing to cut costs on accommodation where possible by swapping houses, or

renting self-catering apartments. A growing number of French consumers are turning to Airbnb

to find cheap accommodation to rent. More than one million French consumers have signed up

to the online short-term rental site. There are around three million second homes in France, and

many families benefit from their family‘s holiday home to save on accommodation, too. Cutting

costs on travel arrangements also appeals to some consumers, who look to car-share to travel

cheaply to their destination.

For Late-Lifers, travel remains a priority - in a survey by CREDOC in June 2014 59% of

people aged between 60 and 69 and 47% of those aged 70 and over had been on holiday for

more than four consecutive nights during the previous 12 months. Almost the same number

(57% of 60-69-year-olds and 49% of over 70s) said they planned to go on holiday in the

following six months.

Cost is key, though, and of those not going away, more than half of those in their 60s blamed

financial reasons while almost a third of over 70s said money was the reason they were staying

at home. Late-Lifers benefit from lower costs and travel outside peak times and around a third

like to opt for package holidays. Many grandparents also take their grandchildren on holiday, or

look after them during part of the school holidays.

France is the most popular tourist destination in the world, so it is perhaps not surprising that

the trend for staying in France is continuing for French holidaymakers. According to a separate

study, only just over a quarter of French people plan to travel abroad on their holidays. The

choice of destination in France is varied, and a separate survey showed that 26% of those

holidaying in France will head to the coast, 14% to the country and 7% to the mountains, while

19% had not yet decided and 29% would stay home.

Children in France To Learn on Tablets at School

Tablet use has been increasing in France and moves by the French government to increase

the use of technology in schools will see them used by more consumers. In September 2014 the

French government announced plans to improve the teaching of technology in schools at all age

levels. The government aims to equip 70% of pupils in French schools and colleges with their

own device before 2020.

The minister for education said: ―From the youngest age, children are in contact with newtechnology. The role of the school is to guide them in understanding the use of these tools and

to help them begin using them in an appropriate way‖. She added that teachers should help

pupils to understand the idea of a ―worldwide network‖ which allows us to communicate withpeople who are far away. French President François Hollande has reiterated the commitment to

technology, saying that in the school year beginning in 2016, all secondary school students will

be equipped and will be taught about technology.

Many consumers are already adopting tablet in the home – the French government says that

almost 1 in 10 children under the age of seven owned a tablet in 2014, an increase of five

percentage points compared with 2012. And almost 1 in 5 children between seven and twelve

have a tablet. Children under the age of seven spend an average of three hours 10 minutes on

the internet each week, rising to five hours for seven to twelve-year-olds.


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CONSUMER SEGMENTATION

Babies and Infants

There are 2 million babies and infants aged two and under in France. The number of children

in this age group remained stable between 2000 and 2014, with no significant change forecast

by 2020.

France has robust birth rates, with 12.2 births per 1,000 women in 2014, a figure which has

reduced slightly since 2000 when it stood at 13.1 per 1,000 women. This is forecast to decline

slightly over the coming years to reach 11.8 by 2020. However, according to L‘Institut national

de la statistique et des études économiques (INSEE), the average age for a woman to have her

first child went beyond 30 years for the first time in 2013, compared with 26 in the 1970s, while

the average father was 33 years old in 2013, compared with 31 in 1990. Financial and career

pressures are often cited as reasons for delaying starting a family. One mother said: ―I am 43and I have a daughter who is six months old. She is my first child and probably the only child we

will have but that is fine with me. We have been together for 15 years but we took a long time to

reach professional and financial stability which delayed our plans for a family.‖

Women typically return to work 10 weeks after their baby is born. Childcare costs are not

particularly expensive, depending on the type of childcare chosen, and there is state help, but

competition can be high. There are local authority-run crèche facilities for babies from two

months to three years of age which are affordable, but getting a place is difficult. French writer

Pascal-Emmanuel Gobry wrote in Forbes: ―None of our parents‘ friends have a crèche spot. Wedo not know anyone at our church who does. The French parenting blogosphere is filled with

stories of waiting for crèche spots and pulling strings to get one.‖ Parents tend to sign up be fore

the baby is born but a place is not guaranteed. Other options include employing a child minder

to look after babies in the child minder‘s home, or a nanny who works in the family‘s home.

New mothers prefer to start out breastfeeding their infants

The number of mothers who breastfeed their babies at birth in France has increased from

fewer than half in the 1970s to 74% in 2013, according to the study published by Epifane in

2014. By the age of three months, 39% of babies were being breastfed, 10% exclusively and

11% predominantly, with 18% receiving formula. By six months, one baby in four was being

breastfed and of those, more than half were being fed formula. At one year old, 9% of babies

were still being breastfed. Returning to work at around three months means most mothers turn

to formula feeds after that point.

Parents buy more baby equipment online – and more second-hand

Most new parents now buy baby equipment online – some 70% of mothers said they hadbought something for their new baby via the internet. Three quarters buy small items such as

bottles and bibs online, while 62% buy larger items such as pushchairs and baby walkers. Butthe pressure is on to keep costs down, and many parents buy second-hand items either through

online marketplaces like Le Bon Coin or at car boot/jumble sales. One woman said: ―I havebecome an expert and can even negotiate, and I have found lots of baby items at good prices.

With three children and the crisis I buy practically everything second-hand.‖

Chart 2 Babies and Infants in Focus 2000-2020


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Source: Euromonitor International from national statistics/UN

Kids

There were 4.7 million children aged between three and eight years old in 2014, a figure

forecast to remain stable for the coming years. Children do not legally have to attend school

until the age of six, when they start primary school, but the majority attend nursery school before

that. State schools are free, and children are usually sent to their closest school unless they

choose to request a place in school in a different area.

French school children do not wear uniform and can wear what they like to school. State

schools are secular so no clothing or jewellery demonstrating religious beliefs are allowed.

Children either eat lunch in the school canteen or at home – bringing a packed lunch is not

usually allowed. The cost of school lunches depends on the area and the financial situation of

each family, and can range from a few centimes up to a few euros. Children have a ―gouter‖ orafternoon snack every day at around 16.00. This might include a piece of fruit, a biscuit, a pain

au chocolat, some bread with chocolate and a drink of juice or water.

There is currently a push from the government to increase digital awareness at school,

including teaching coding; however some schools have limited facilities to give children access

to computers. Playing with computers and tablets is common at home.

Many children stay at inexpensive after-school clubs run by the local authority in the evenings

until parents collect them after work, and attend local authority holiday clubs outside term time.

The vast majority of schools have Wednesday afternoons off and this is when a lot of extra-

curricular activities take place, such as ―baby gym‖ for small children, swimming, football,

basketball, dance (everything from ballet to hip-hop), music and art classes. Parents are

expected to equip their children for most activities, providing sports kit or uniforms.

Back to school means back to the shops

For children in nursery and infant school, most school equipment is provided. However, at

each start of the new school year, parents receive a list of items that are required. For those

aged six and over and in primary school, a long list of required equipment is provided at the end

of term by the teachers and costs are covered by parents. These include almost all stationery

items to be used by the child, from pens and pencils through to exercise books, ring binders and

plastic covers for papers. The list is detailed down to the size, style and brand of each item and

when children bring in the wrong item, they are asked to change it for the right one.


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There is no school uniform, but many parents stock up on a new wardrobe for children at the

start of the school year and often buy a new school bag each year. One mother, whose

daughter was starting infant school for the first time in 2014, said: ―I will be buying clothes at the

last minute – she is growing so fast that I would rather wait until a few days before school

starts.‖

French families and educators turn to tablets

According to the Minister de l‘Education National, 8% of children under the age of sevenowned a tablet in 2014, five percentage points more than in 2012, and 19% of children between

the ages of seven and twelve. Children under the age of seven spend an average of three hours

10 minutes on the internet each week, rising to five hours for seven to twelve year olds.

Attitudes towards tablet use for children vary. In October 2014, one mother said in an article in

l‘Express: ―I would not buy a tablet for children because I think that would legitimise the fact that

they play on it often. I would rather they say ‗it is mummy‘s tablet, she lets me borrow it.‘‖ Another mum said: ―We decided to buy real tablets – the smallest on the market – with parental

control, and we download free games for our children. Against our expectations, not only do

they look after them but they do not spend too much t ime on them.‖

Chart 3 Kids in Focus 2000-2020


Tweenagers

There were 3.1 million Tweens (aged 9-12 years) in 2014, and the numbers are forecast to

grow to 3.25 million by 2020. This age group are in the final years of primary school as when

they reach 12 they start secondary school.

There are no school uniforms so clothes are an important part of a budget for a growing

Tweenager. The end of the summer holidays and the run up to the start of term are a key time

for replenishing wardrobes and buying school equipment. For school equipment, consumers

often turn to the supermarkets and hypermarkets, although increasingly they are buying online.

Tweens eat either at home or at the school canteen, but most will not have a packed lunch at

school. The gouter remains important at this age, and children take a snack to school to be

eaten around 16.00.


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At this age there are few children using social networks regularly – Facebook has a minimumage limit of 13, for example, although they use sites such as YouTube to look up videos they

have heard about at school. Video games such as Minecraft are popular too.

Children typically begin receiving pocket money around the age of nine, and the average for

seven to eleven year olds is €12 a month, according to the website abcbanque.fr. A survey bythe Journal du Mickey asked French children between seven and fourteen years who their

favourite stars were and the TV presenter Kev Adams came top, followed by the singer Black M,

actor Omar Sy and the singers Maître Gims and Stromae also featured in the top 10, along with

Loup-Denis Elion, Issa Doumbia, Joy Esther, the singer Kendji Girac and DJ David Guetta.

French Tweens get their first mobile at 11

The average age for owning a first mobile phone is 11 years old in France. This corresponds

to the first year of secondary school when children are likely to begin to be more autonomous,

walking, taking buses and cycling to school alone, or having less regular school hours.

However, parents of younger children are still reluctant to buy them phones. One woman,

commenting on the news that on average, children in American had phones at the age of seven,

said: ―I do not understand why, at seven years of age, you would need to stay in contact withfriends you have seen all day long at school. I do not understand why, to get in touch with

grandparents, cousins, even mummy or daddy in the case of divorce, they need their own

phone.‖

Parents shop online but ask their kids‘ opinion for back -to-school purchases

Parents often buy back-to-school equipment at the hypermarket, but increasingly they are

buying stationery and other equipment online in the hope of paying less. Keeping costs down is

important – the overall price of equipment for a new secondary school student is more than

€100 – parents look to the internet for value. According to a study in 2012 by the association

Familles de France, buying online worked out between 15% and 20% cheaper for a child going

to school aged 11.

According to a study by Opinionway reported on ecommercemag.fr in September 2014, 40%of parents said they had already bought equipment online. While parents may shop for items,

81% ask their children‘s opinion before purchasing clothes, 86% for shoes and 72% for school

equipment.

Chart 4 Tweens in Focus 2000-2020



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Teens

There were 3.9 million Teens in France in 2014, a number forecast to rise slightly to 4.05

million by 2020. Secondary school starts at the age of 11 (in their 12th year) and key exams (le

diplôme national du brevet) are taken at 14 or 15. Secondary education is due to undergo

substantial reform from 2016, when new interdisciplinary teaching methods are to be introduced.

Next, teenagers typically go to high school to study for the baccalaureat over three years

(known as Seconde, Premiére and Terminale). This is the standard qualification required to go

in into higher education.

Teens are legally allowed to work a summer job from the age of 14, although until the age of

16 they must be given a minimum number of days off during the holidays. Some teenagers earn

extra cash by babysitting. Most teenagers receive an average of €47 a month pocket money,

according to abcbanque.fr. One 13-year-old said: ―I have €8 a month ... I save this money, I waitfor the right moment to spend it, for example on a book I want. When it is an online purchase,

my parents pay and I pay them back.‖ A 15-year-old said: "Since [first year of secondary school] I have had €8 a month. I buy myself

popcorn at the cinema, a t-shirt ... or I save up for BD (comic book albums that are popular in

France) or video games. I save money from Christmas and my birthday. I also help my dad out

in his business. Once I saved enough to buy myself a PlayStation 3. My dad was really proud of

me and I was pleased he was proud.‖ Another 14-year-old said: ―My mother gives me €80 a month, double last year‘s amount. That

covers useful items like cosmetics. The rest I spend on my love of Madonna! CDs, DVDs,

books, necklaces ... I have collected everything about the singer for two years. But I have my

pocket money withheld almost every other month when I am sent out of lessons, for example.‖ Teenagers are under pressure to join social networks. One 14-year-old said on a forum: ―At

my age, 14, you have to have at a minimum Facebook, Twitter and Instagram. I am signed up to

those and Skyrock Skype.‖ Many French teenagers have their own mobile phone once theyreach secondary school. An article in La Depeche in 2013 said that 78% of under-25s were

dependent on their mobile phones, although four students aged around 14 said they preferred

computers. They had all owned mobile phones since the first year of secondary school, and said

they all knew ―at least one person who was addicted to their phone and who checked it everythree minutes all day long, and spent the day with it stuck to their hand.‖

Teens watch less TV now than in the past, and prefer to consume media in other ways.

Almost all (97%) households with people aged 13 to 24 have a television, and 96% have a

computer with internet access. Half of households with young people have tablet and three

quarters have a games console, according to an article in NouvelObs.com from December

2014.

According to the Comité National Contre le Tabagisme, 26% of French 15-year-olds are

regular smokers, although it has been illegal to sell cigarettes to under-16s since 2004.

French teens spread themselves across social networks

French kids on average have their first phone at 11, and between the ages of 12 and 17 they

typically send 381 texts each week, according to a study by Credoc r eported in L‘Express in

January 2014. The report said that teens are moving away from Facebook (largely because it is

seen as the place parents hang out) and have instead moved towards other social networks.

A report on petitweb.fr said teens have a ‗controlled‘ profile on Facebook and Instagram,through which they are likely to connect with family, but on other social networks are less

inhibited. A 15-year-old quoted in l‘Express said: ―Facebook is for family and older people,‖ it is

not a good idea to post all the details of your life there, she said, adding that young people often

use Twitter for that.


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A study for the Fédération Française des Télécoms of people between the ages of 12 and 17

and hundreds of social network accounts showed that ―on Facebook or Instagram they post

official photos and on Snapchat, those that have been taken spontaneously.‖ Snapchat, the

instant messaging application, allows people to send text, videos and images, but these only

have a lifespan of a few seconds, after which they are deleted. People studied were receivingbetween 80 and 100 images a day.

According to l‘Express, Snapchat is the preferred service for teens. One teenager,commenting on the teen magazine site geoado.com in March 2014, said: ―I think Snapchat

could become the number one social network. Right now almost all my friends are no longer on

Facebook, but they are on Snapchat. The concept is quite nice but the risks of hacking are high

so users should beware.‖ Other popular networks include Line, Whatsapp and Skype, which is

used for video calls by friends and by gamers.

French Teens are sleepless with their smartphones

Smartphone use has been blamed for insomnia in French teenagers. Some 15% say they

send text messages in the middle of the night and 11% say they are on social networks at night

time. As many as 1 in 10 set an alarm in the night so they can remain connected and check upon their friends‘ activities. As a result, 58% of teens surveyed in the report, published byBFMTV.fr in March 2015, said they found it hard to get up in the morning and almost a quarter

said they were falling asleep in class.

Chart 5 Teens in Focus 2000-2020


Young Adults

There were 9 9.2million Young Adults in France in 2014, and the figure is forecast to remain

broadly stable until 2020. Many young people choose to go into higher education when they

finish high school and there are more students in France now than ever before, according to

INSEE. There were a record 2.4 million students enrolled in higher education in 2013.

The higher education system is split into different categories. The public sector universities,

where the largest proportion of students is enrolled, charge fees which vary according to the

discipline and begin at €184. ―Grandes écoles‖ are post graduate schools where courses last for

five years, which includes two years of preparation for entry exams into the grandes écoles.


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These are seen as elite establishments. There are also specialist technical institutions which

cover subjects such as computing and technology, business, industry or services. Courses tend

to be shorter and more vocational.

As well as being a pathway into professional life, higher education is also seen as protection

against unemployment. Youth unemployment remains high in France – 1 in 4 under 25s areunemployed compared with 10% in the wider population, according to Le Figaro, and the

proportion of people without higher education qualifications is considerably higher. Those who

do have qualifications are more likely to be over-qualified for the job they are doing.

Apprenticeships are another route into employment. There were 400,000 apprentices in

France in 2014, two thirds of whom were men.

France also counts some 2 million young people who are neither in employment nor

education.

It is a tough time for people looking for work in this age group. In January 2014, one woman

aged 22 told grazia.fr: ―I finished my training in June; I did a baccalaureat then I got a diploma inbeauty therapy and I have been looking for a job in that line of work. Straight away I sent out my

CV and covering letter but all the responses have been negative, specifically because I do not

have enough experience. I have looked all over France but I have not had any success.‖ Another woman, aged 23, told grazia.fr: ―I have bac+ 5 (equivalent to a masters) in public

sector management and I have been looking for a job since August, but have found nothing. No

vacancies for management positions are open to people starting out. Most often, two years‘

experience is required.‖

Seasonal work provides some relief. France attracts more tourists than any other country, and

this, combined with agricultural work, opens up seasonal contracts, many of which appeal to

young people (although older people and the unemployed are now also competing for these

jobs). There were thought to be 667,000 seasonal jobs in France in 2014, an increase of 15.5%

on the previous year.

Financial pressures mean young people are staying at home longer and delaying families –

the average age at which women have their first child is now over 30, and over 33 for men.

Sport, fashion, travel and music are all key interests for French young adults. An interest incelebrity gossip is strong – covering both French stars and Hollywood names.

Among young adults, shopping smart is important and people are pleased to bag a bargain.

Low-cost stores such as H&M and Zara are popular shopping spots and Primark, a recent

arrival in France, was awaited with impatience.

Owning a new car in this age group is rare – the average age at which people buy a new car

was 54 in March 2015, according to BMTV, while under-30s make up 10% of those buying new

vehicles. Many young adults are seeking to reduce their expenditure in this area, and car

pooling services such as BlaBlaCar and Autolib have been increasingly popular, allowing people

to travel by car without owning their own vehicle.

Young adults are leaving France for work and new experiences

More than a quarter of young, qualified French adults would be prepared to move abroad forwork as they cannot find jobs in France, according to France Info. And many people are moving

abroad – the Ministry of Foreign Affairs said that in 2013, the number of adults between 18 and25 who have moved abroad had climbed by 14% since 2008. Incentives are not just restricted to

finding work – people are also keen to learn a language and gain experience in another country. According to Le Monde, of those people who do want to work abroad, 11% aim to return to

France in less than a year, 44% aim to work abroad for between one and five years while 28%

imagine their whole career abroad.


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Young adults stay in the family home – and many return having left

Financial pressures are forcing a lot of young people to stay in their parents‘ homes longer

than they would like. Almost half of people aged 18 to 25 live in the family home, according to a

study published in Le Figaro in June 2014. Two thirds would like to leave to live in their own

home but cannot afford to, while 83% of working people and 90% of those aged 24-25 yearswould like to leave.

Chart 6 Young Adults in Focus 2000-2020


Middle Youth

Middle Youth accounted for 12.4 million people in 2014, and the population is forecast to

decline to 12 million by 2020. There are an increasing number of single people – 9% of peoplein their 30s lived alone in 2012, compared with 3% in 2010.

But for many, this is the age at which first children are born – the average age for a mother tohave her first child is now over 30, and the average first-time father is over 33. So during this

time, finding childcare, buying baby equipment, children‘s clothes, paying for activities as well ascovering the household bills all become crucial parts of everyday expenditure. This is also the

time for buying a first property – the average first-time buyer in France is 37 years old.

Middle Youth are, on average, less affected by unemployment than young adults. Only 9% of

French people aged between 25 and 49 are unemployed according to INSEE, compared with

24% of those between 15 and 14 and 7% of 50 to 64-year-olds.

While the Paris region has offers the most opportunity for work, younger workers and familiesare finding it hard to meet the costs of housing in the area, and many are going in search of a

better quality of life outside the capital in the provinces. One 32-year-old father told Le Journal

du Dimanche how he left the Paris head office of his employer to work in Bordeaux. ―It was not

easy to begin with, but it is now. From 20 to 30 it is great to be in Paris. From 30 to 40, the

provinces are better."

For many people in this age group, holidays become family affairs, and in the current climate

keeping down costs on holiday accommodation by opting for self-catering or staying with family

or in second homes has become popular.


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Becoming parents later

French people are having fewer babies, and starting families later. In spite of a slight decline,

France‘s birth rate remains one of the highest in Europe, but people are waiting longer beforebecoming parents. The average age to become a mother is now 30, compared with 26 in the

1970s, and more than half of babies are born into homes with at least one parent over 30.People prefer to become parents when they are professionally and financially stable, and also

want to spend time together as a couple before starting a family, according to an article in

metronews.fr in September 2014.

French buyers face a longer wait before purchasing their first property

Buying a first property is a dream for a lot of people in Middle Youth, but it is one that has

become hard to realise. According to an article in Le Figaro. ―The number of people buying their

first home has shrunk in recent years. Young people are among the hardest hit.‖ Property prices

in cities, the tough economic climate and the strict requirements of banks all make it difficult for

French people to buy their own home. According to Cafpi, the average age of first-time buyers

has risen from 33 in the first quarter of 2012 to 35 in the fourth quarter of 2014. The average

buyer in 2014 was 39, had an annual income of €53,769 and borrowed €176,500 over 17 yearsand seven months.

Chart 7 Middle Youth in Focus 2000-2020


Mid-lifers

There were 12.7 million Mid-Lifers aged 45-59 years in 2014, a figure forecast to increase to

13 million by 2020. While this group is affected by unemployment, it is not the worst hit – nearly

7% of 50-64 year olds are unemployed compared with a national average of 10%.

Nonetheless, financial pressures are present, and many people are concerned about saving

for retirement at this age. What is more, many people in this age group have older children and

ageing parents who need help and support, which leaves them squeezed in the middle. This is

nonetheless the age at which French people begin to think about buying their first new car – the

average buyer of a new vehicle was 54 in 2015.

As people reach retirement there is extra pressure to save for the future. French people are

big savers and a lot of emphasis is placed on assets (which can refer to the assets one holds or


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inheritance). The average value of assets held by a French person aged between 40 and 49 is

€132,000 and between 50 and 59 that figure rises to €203,700. There is a big gap between the

poorest 10% (€2,000 assets at 50-59) and the richest 10% (€693,000 at the same age).

However, at the upper end of this age group, saving has become less of a priority, according

to a study by HSBC related to people aged 55 to 64. The report showed that 1 in 10 peoplenearing retirement thought it was better to carry on saving once they had retired, in order to

leave an inheritance for their children.

Second homes remain a dream for Mid-Lifers

According to an article in Les Echos in May 2015, 70% of French people would rather buy

than rent a holiday home. In 2011 there were 3 million homes ―used for weekends, leisure or

holidays‖ according to Le Figaro, but the market has slowed significantly as people tighten their belts in light of the economic conditions. The president of La Fédération nationale de l'immobilier

(FNAIM), the estate agents federation, told Le Figaro in February 2015 that the number of

transactions on the market had dropped by 30%, and prices from 15% to 20%.

But notaire Bernard Drouvin from Brittany said in Ouest-France (July 2014) that there were

new trends emerging. ―People are looking for smaller properties. And they are starting to buylater. The average age of buyers has risen from 48-50 to 52-54. The second home is still a fixed

point for families, but not necessarily a place where children and grandchildren will stay from 1

July to 31 August. Another development – it is becoming a way to prepare for retirement with

the hope of living there one day.‖

Older Mid-Lifers are happy to spend the kids‘ inheritance – to a degree

While the French are a nation of savers, the upper end of the Mid-Lifers age group is keen to

benefit from the fruits of their labours. There has been a trend for spending, rather than saving,

among those between 55 and 64, according to a study by HSBC where 1 in 5 said they

preferred to spend their money without worrying about future generations – with more men thanwomen sharing this opinion.

One man, who is married with three children, will leave his house to his children, but toldEurope 1: ―My youngest is 24, he has already started his working life and is just about able toget by. I am there to help him, but I cannot carry on living for my children. What we have earned

will be for our retirement. Not for anything crazy, but to travel for example and do things we have

not had time to do yet.‖

Chart 8 Mid-Lifers in Focus 2000-2020


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Late-lifers

There are 15.6 million people over the age of 60 in France, a number which is growing. In

2000 there were 12.1 million, and by 2020 the population is forecast to grow to 17.1 million.

INSEE predicts that over 65s will make up one third of the population in France by 2035.

The minimum retirement age in France is increasing from 60 to 62 in 2017, and over 60s tend

to live a busy life in retirement. Results of a survey published in Le Parisien showed that 85% of

seniors (in this case over 55s) were satisfied with their lives and continue to have an active

social life.

A separate study published in La Depeche in June 2015 showed that 70% were happy, and

15% of those very happy – compared with a national average of 58%. In addition, 9 out of 10

people said they felt sufficiently supported by family and friends. Although younger people worryabout their retirement, Late-Lifers consider themselves in a good economic position. A healthy

asset base means they have a standard of life that is slightly higher than most, on average, but

there are significant gaps in wealth – 1 in 5 lives on less than €1,000 a month.

Older people continue to live independently in their own homes for as long as they can – 9%

of over 75s were living in special accommodation in 2011, according to the latest INSEE figures.

Another report said that most residents of retirement homes were single women with an average

age of 83.

People over 60 consider themselves dynamic, and this is a time when many pursue interests

they have not had time for in their working lives, such as the arts and culture, as well as

gardening and DIY. They are concerned about their health – La Depeche says that hiking andwalking are popular pastimes and more than 60% of people take part in physical activity.

Travel is popular and an increasing number of French Late-Lifers spend all or part of the yearabroad. According to La Depeche, more than 1 million older people live abroad. A better climate

and lower taxes are cited as reasons.

Increasing numbers of Late-Lifers are getting divorced, according to a study by the Institut

national d'études démographiques, reported in Le Monde in June 2015. The number of divorces

among people over 60 have doubled since 1985. Rather than stay single, some are turning to

online dating to meet a new partner.


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Over 60s are working longer

There were huge demonstrations when it was announced that the state retirement age should

increase from 60 to 62 in 2017. Already there has been an increase in older people remaining in

work. According to a report in La Tribune from February 2014, just over 40% of men and women

aged 60 were working in 2012, 20 percentage points higher than in 2003. At the age of 65, 10%of men and 7% of women were working in 2012, and 6% of those between 65 and 69 were

working.

French Late-Lifers love to travel – when they can afford to

French Late-Lifers look forward to using spare time to travel. In a survey by CREDOC in June

2014 59% of people aged between 60 and 69 and 47% of those aged 70 and over had been

away for more than four nights in a row during the previous 12 months. Almost the same

proportions (57% of 60-69 year olds and 49% of over 70s) planned to go on holiday in the

following six months. For those not going away, more than half of those in their 60s and almost

a third (31%) of over 70s said money was the reason they were staying home. Late-Lifers

benefit from lower costs and travel outside peak times and around a third like to opt for package

holidays. A separate report showed around a quarter of baby boomers take their grandchildren with

them on holiday. The majority (62%) of this age group like to travel in France, while 34% go

abroad for winter sun, according to an article on Seniorscopie.com.

Chart 9 Late-Lifers in Focus 2000-2020


Note: Old-Age Dependency Ratio: % of persons older than 65 per persons aged 15-64

HOUSING AND HOUSEHOLDS

Home Ownership

There are 29 million households in France, up from 25.5 million a decade ago, and this

number is forecast to grow to more than 30 million by 2020. There are 12 million living in

apartments compared with 16.8 million in houses.


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The number of homeowners is growing; 16.7 million homes were owned by their occupiers in

2014, and the figure is forecast to reach 17.7 million by 2020. Renters make up 11.4 million

households. For students and young professionals, it is common to live alone rather than share

a house and the largest proportion of households is made up of single people, with those living

alone accounting for more than 10 million households in 2014. Couples without children accountfor 7.7 million and couples with children 7.4 million. While the number of households comprising

couples with children is forecast to remain stable, the number of those without children is

expected to grow.

Owning property has become a key aspiration for many French people, although talk of a

housing ladder is less prevalent than in countries such as the UK. Only 4 in 10 people want to

become homeowners, according to a survey by CSA/Groupe Pichet. The same survey showed

that 53% of people wanted to become homeowners as preparation for retirement. Respondents

said they wanted to own their homes so that they would not have to pay rent when they had

stopped working.

However, the barrier to homeownership remains high. On 2013, the average homeowner was

37 years old, a year older than in 2012. The average home loan taken out was €168,000 across

19.5 years, with an average deposit of €32,000. New-builds are generally more sought after than older homes; some 71% of respondents to a

survey carried out by PAP.fr, a site that allows individuals to sell property and land without an

agent, said they would rather buy a new-build house. And while people may dream of buying a

property, buying land on which to build a house is more desirable to many. Two thirds of people

dream of building their own home, the survey by PAP.fr showed. Another survey, carried out by

Ipsos for estate agents Orpi, showed that 79% of French people dream of a detached house

with a garden.

The housing market in France is relatively subdued in large parts of the country, although

there are huge differences between the regions. In certain cities demand is high and property

sells very fast, but in rural areas a house may remain on the market for years. Average house

prices fell by around 1.5% in France in 2014 according to FNAIM. The average price per square

metre in Paris currently stands at more than €8,000, while in Alpes Maritimes the average priceper square metre is around €4,100. In Creuse and Haute-Marne, by contrast, the average cost

per square metre is a little more than €900. While some families move to a larger home when they need more space, many choose to

extend their family home instead. It is often a cheaper option than buying a larger house and

allows them to design their own home, stay in an area they are settled in and increase the value

of their property. A trend for building one-floor houses or bungalows in recent decades means

some are able to increase the floor area of their house by adding another storey, often using a

building firm specialising in this work.

People renovating houses and making them more environmentally friendly, for example by

replacing old windows with double glazing or insulating loft spaces and walls, can apply for tax

relief and may also be eligible for regionally-allocated grants. People renovating can also

currently apply for 0% interest loans, although qualifying criteria are strict.Outside space is important to French people, and many dream of having their own pool.

Indeed, there are already 1.76 million private pools in French homes – the country is the second

to the US in terms of pool ownership.

Chart 10 Home Ownership 2000-2020


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Source: Euromonitor International from national statistics

Household Profiles

The largest group, 10 million households, is made up of single people. The number of

households made up of couples living together with children stood at 7.5 million in 2014 and is

forecast to remain at similar levels, while households without children totalled 7.7 million andlooks set to rise to 8.1 million by 2020. Single parent families account for 2.13 million

households, a similar figure to 2004. The figure is forecast to rise to 2.5 million by 2020.

According to INSEE, in 2013 1 in 10 children under 18 lived in ―reconstituted‖ families – with

step-parents and step- or half-siblings for example.

In cases of divorce, it has become increasingly common for children to divide their time

equally between both parents, usually spending one week with the mother and one week with

the father. In 2012, this approach was used in 21% of cases, compared with 12% in 2003,

according to the Ministry of Justice.

As children grow up, they increasingly live with their parents for longer. While around a third

(34%) of students live in rented accommodation, either alone or with a partner, almost a third

(32%) live with their parents while they study. Many also move home after they graduate, due

largely to high unemployment rates among young people. According to Eurostat, the percentage

of people aged between 25 and 34 moving back to the family home rose from 8% in 2006 to

12% in 2011.

Although they are growing in popularity, house shares remain relatively unusual for both

students and young professionals. When people do leave the family home they frequently live

alone in small self-contained studios or apartments.

According to the OECD Better Living Index, in France the average household net-adjusted

disposable income per capita was US$28,799 a year in 2015, more than the OECD average of

US$25,908 a year, although there is a significant gap between the richest and the poorest. The

OECD says the top 20% of the population earn close to five times as much as the bottom 20%.

French people are passionate about their pets. According to Santé Vet, half of all homes have

a pet and there are 61.6 million pets in France, including 10.7 million cats and 7.8 million dogs.

A quarter of homes have at least one dog, the survey showed, and there are also some 36

million fish living in French homes.

Chart 11 Household Profiles 2000-2020


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Source: Euromonitor International from national statistics

Running Costs

The average household spent €1,950 on energy bills in 2014, compared with €1,530 adecade ago. This figure is forecast to rise to €2,074 by 2020. As a result of high costs, people

are more sensitive to the idea of reducing energy bills by consuming less.

All new homes must be built to high environmental standards and for existing properties there

are many incentives such as tax credits, low-cost loans and grants, to encourage people to

improve household energy efficiency. Solar panels are seen on roof tops across France and

heat pumps and other geothermic heating systems are also becoming more popular, and

although they are more expensive to install at the outset, in theory the energy savings over time

make them cost effective.

Awareness of environmental issues is increasing all the time. Recycling is collected from

homes regularly, some areas collect glass from homes as well as paper and recyclable plastics.Most major supermarkets no longer give away carrier bags, but instead charge a small sum for

a thin plastic bag and a little extra for a more substantial bag that can be reused many times.

Financial constraints lead more French people to do their own home improvements

The French are keen on home maintenance, undertaking a lot of jobs themselves, and with

financial constraints still present they have been more active. According to an Ipsos/Brico Pro

survey published in May 2014, 88% of French people said they did DIY and 42% of those said

they had done more home improvements themselves in reaction to the financial crisis. People

under the age of 35 are doing more DIY than others since the start of the crisis. Certain large

DIY stores offer cheap one-day workshops where people can learn to tile, lay parquet flooring

and so on, and these are popular with consumers. Some people turn to YouTube to find tips and

learn the basics of home improvements.

More French people sharing houses to cut costs

Sharing a house with peers is becoming more popular. House shares are uncommon in

France, many students and young professionals live alone in studio flats or one-bedroom

apartments. In recent years, sharing accommodation has become more popular. In a report

published by estate agents Guy Hoquet, 16% of people had shared a house or flat with others,

but that figure rose to 34% among people aged 18-24. For many, the choice to share a home

would be by necessity rather than choice, but it is a solution that is becoming more attractive as

living costs are difficult to meet.


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Chart 12 Household Running Costs 2000-2020

Source: Euromonitor International from national statistics/UNNote: In constant 2014 prices

MONEY AND SAVINGS

Attitudes Towards Payment Methods

As many as 71% of French people prefer to use their bank cards to pay for goods, and 61%

would like to use their cards more often, according to a CSA survey for the Minister of Finance

and the Economy. However, for smaller day-to-day purchases, 86% of people use cash, with a

card used only when the consumer does not have enough cash. Around 1 in 10 French people

would use their card as a first choice for small purchases.

Many retailers continue to impose a minimum payment threshold of €15 for card paymentsbut this may cease. According to a report on France Info in May 2015, Michel Sapin, the

Minister for Social Affairs, has called for an end to minimum charges for card payments and has

told banks to reduce the fees imposed on retailers to allow this to happen.

Contactless payment is beginning to be more prevalent, and new bank cards will by default

have this function, but according to the CSA report only 29% of French people want to make

contactless payments. Even fewer – 17% – are interested in using their mobile phone to pay for

goods and services.

For families, the chequebook is still essential. Schools and extra-curricular clubs and activities

tend to favour payment by cheque, although for household bills, a direct debit system is

common. Cheques are losing favour in other areas and are increasingly refused in shops and

restaurants. It is common to see a sign explaining that, due to a high number of cheques not

being honoured, the management have decided to stop accepting them. Retailers who doaccept them often ask consumers to produce a form of ID.

Use of credit cards for borrowing is not widespread in France. The term carte de crédit is

usually interchangeable with carte bancaire, or debit card. Consumers choose from crédit

immédiat (immediate debit) or a credit déféré (deferred debit), and the funds to pay for a

purchase should be in the consumer‘s bank account at the time of purchase for immediate debit,

or by an agreed monthly date in the case of deferred debit. Credit cards are available, but they

are not prevalent. There are strict laws to protect consumers from over-borrowing through

renewable credit. There were 2.7 bank payment cards per capita in circulation in France in

2014, but only 0.3 cards with credit function per capita.


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Savings

The French save on average 15% of disposable income. The figure has fluctuated a little but

has remained broadly stable over the past decade and is forecast to grow slightly to 16% by

2020. According to an article in Le Figaro, many economists believe an increase in saving is

down to ―collective pessimism‖ and caution relating to weak economic growth in France. Theprice of property and repayment of mortgages leave households obliged to save, the report said.

An article in La Tribune said the reason the French save so much (the European average was

about 11% in 2013, and in the US and UK closer to 4%) was that saving is in the French DNA,

while Americans prefer credit. It also stated that France is a country of homeowners, and so

people need deposits, while Germany has historically been a country of renters.

Saving for a rainy day is common. One saver said on the doctissimo.fr forum: ―I have

calculated that with six month‘s salary I can manage my household costs, food, and petrolwithout changing my behaviour for one year. That gives me enough to manage in case of a big

problem.‖ The basic savings account chosen by many is the Livret A. Only one Livret A is permitted per

person (children and adults may open them), and savers can put a minimum €10 and amaximum €22,950. The rate of interest is set by the government, and the accounts are offered

by banks and the Banque Postale (where the minimum deposit is €1.50).

Another popular product is life assurance. These are essentially wrappers in which other

investments are held and a third of French people are invested in them, according to an article

published in Le Figaro in April 2015. These offer fiscal benefits, which increase the longer they

are held.

Loans and Mortgages

The French are increasingly credit averse; according to figures published by the Federation

Bancaire Francaise, the proportion of households with credit fell for the fourth consecutive year

to 47% in 2014, the lowest level in 25 years.The number of households with mortgages stood at 31% (no change from 2013). The

proportion of those with personal loans was 26% at the end of 2014, down from 27% the

previous year, and the lowest level since records began in 1989. The French have never been

enthusiastic borrowers but the further decrease in loan take-up may also be explained by a

number of laws (loi Lagarde and loi Hamon in particular) which are aimed at protecting

consumers from over-indebtedness. According to the Federation Bancaire Francaise,

households principally use credit to pay for household items, cars, or to cover home

improvements, but they are far less likely to borrow for leisure or day-to-day spending.

This would appear to be more about a generally cautious attitude to borrowing rather than

concerns about affordability. The majority (84%) of households using credit said the cost of

borrowing was affordable. Indeed, mortgage rates are at historic lows in France. The average

loan rate in 2015 was 2% and the average term was 17.6 years.Rates may be low but obtaining a home loan is not easy. In an article on the Obs Immobilier

website in April 2014, mortgage broker Cafpi said banks were very selective but first-time

buyers were nonetheless active. However, these buyers are more likely to be post-divorce

rather than new couples or professionals with no deposit.

Most first-time buyers will take out a mortgage and they typically need 10% deposit, at least.

Estate agent Century 21 said that the average deposit in the first quarter of 2014 was 11% for

those making repayments of €1,000 a month. France has a first-time buyer scheme called PTZ

which helps by offering a limited value loan at 0% interest for new-build properties.


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Concerned French consumers concentrate on saving

Spooked by the financial crisis and concerned about what lies ahead, French savers are

putting money away for a rainy day. The average French person had €25,000 in a savingsaccount in 2013, according to an article on Boursier.com from February 2014. An article in La

Tribune from January 2014 suggested that the high level of savings was related not just to thecurrent financial situation, but also to pessimism about the future. A study by l'Observatoire

BPCE in July 2013 said that 72% of adults believed that ―in today‘s society, everyone needs to

take care of themselves and rely less on the state.‖

Payment ―sans contact‖ coming whether consumers are ready or not

Banks have been rolling out contactless payment card across France, which will allow

payments of less than €20 to be made without contact or pin, which could make it easier tomake small purchases without cash. However, the French are not enthusiastic about this

development. Only a small proportion of French people have used contactless payments, even

when they know the option is there. A study for BFM Business showed that 44% of French

people were aware of the contactless payment system, but only 15% had used it. And 30% had

not used the payment method even though they were aware they could. Many people arenervous about the potential for fraud. One consumer commenting on the 60million-mag.com site

said ―I received my new card and the bank staff did not even specify that this card could make

contactless payments. I found out by accident. I was at a till when the cashier passed the card

over the screen, and I read ‗payment accepted.‘ I was speechless!‖

Chart 13 Borrowing and Saving 2000-2019

Source: Euromonitor from trade sources/national statisticsNote: Outstanding balance in constant 2014 prices

EATING AND DRINKING

Eating Habits

A survey by INSERM (Institut National de la Santé et de la Recherche Médicale) in April 2015

showed that three quarters of French people eat three meals a day at relatively fixed times,

while the remainder eat two meals a day. For a third of those eating three meals, lunch is

usually outside the home at work or in a restaurant with colleagues and friends. For a quarter of

them, most meals are eaten at home at the table with the family, and they take care to eat the

recommended five portions of fruit and vegetables a day. And for 17%, meals are eaten at home


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in front of the TV or listening to the radio. Most of this group were older, alone and with lower

incomes. At family meal times, table manners are important – children are taught from a very

young age how to sit properly, how to use their knives and forks, how to use a napkin.

Typically a kitchen will have an oven and hob, often as separate appliances rather than one

cooker unit. Hobs may be gas (either connected to the local gas supply or a refillable gas bottle)or electric. A grill as a separate part of the cooker is unusual, although modern ovens tend to

include a grill function. Microwaves are widespread and many people have a toaster. Not

everyone has a kettle – people will often heat water on the stove or in the microwave for hot

drinks.

Traditional French dishes remain the mainstay of French cooking – in a gallery of the 30

favourite dishes in France featured on Le Journal des Femmes website, the majority of dishes

were French. The number one dish was magret de canard, and the rest of the list was

dominated by traditional recipes, although number two was the Belgian classic moules frites and

north African influences put couscous at number three. There were a number of classic Italian

dishes such as pizza, spaghetti carbonara and lasagne. While some enjoy foods with a bit of a

kick to them, very spicy dishes are not widely appreciated.

In a poll for Le HuffPost, 6 of the top 10 favourite fast food brands sold sandwiches (filledbaguettes). The bakery chain Paul, selling sandwiches and offering a range of meal deals, was

voted the favourite. Sushi Shop came in fifth. Indeed, sushi has been increasingly popular in

recent years, and sushi restaurants have become a familiar sight in French cities. A separate

report on the Neo Restauration website showed that the favourite brand of chain restaurants

was La Pataterie, a recent addition which is quickly growing in popularity. The chain‘srestaurants are aiming for a cosy, country atmosphere and dishes are based around the potato

(baked potatoes, gratins, tartiflettes among others).

The French are also becoming enthusiastic about burgers – according to a report quoted inl‘Express, the French ate 1 billion burgers in 2014, a 10% increase on the previous year.

Gourmet burgers adapted to the French palate are the most popular.

There has been a trend for food trucks in French cities, particularly in Paris. These mobile

restaurants sell street food of all kinds of cuisines, international and French. Street food is arelatively new concept in France but has been very popular with consumers. There were only

around 110 officially recognised food trucks in France, according to an article in l‘Express inFebruary 2014, but there were more than 250 requests for permits in Paris over 18 months as

consumer demand grows.

So-called slow food has also been growing in popularity. A number of gourmet chefs have

launched side-projects offering lower cost, simpler food made from local products in more

informal settings. Indeed, French consumers increasingly look for local produce for their own

cooking and also in restaurants, seeking a shorter supply chain known as ―court circuit‖ between

producer and consumer.

A survey for a campaign called ―Tous au restaurant‖ showed that people are eating less when

they dine out, but are prepared to pay for better food. Only 14% of people said they would order

a full menu with starter, main course and dessert, while 80% said they would choose a maincourse and dessert. To choose a restaurant, 46% consult the internet and once they get there,

58% use their smartphones to take photos of their food and six out of ten will comment on their

experience on social media.

French people are reducing meat intake

Vegetarianism and eating less meat is a new trend for France, a country which has

traditionally had a very meat-based cuisine. According to an article in Le Parisien, there are

growing numbers of vegetarian restaurants and although only 2% to 3% of the population are

thought to be vegetarian, people are eating less meat. One consumer said they had reduced


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meat in their diet because they wanted to ―reduce the carbon footprint, give an income toneighbouring producers, eat healthy, use local food that is in season, develop links in the local

community and help to look after the countryside.‖

French consumers eat regularly and togetherMost people in France sit down for meals at regular times – breakfast, lunch and dinner are

eaten at roughly the same time by large numbers of people across the country, whether with

family, friends or colleagues. Restaurants have fixed opening times for certain services and are

often closed or do not serve food between main mealtimes. Most businesses close down for

around two hours at lunch time rather than staggering lunch breaks and employees either go

home to eat, bring in their own lunch to take out of the shop or office, buy a sandwich or similar

takeaway food or sit down to lunch at a reasonably priced restaurant. According to Crédoc

consumer studies and research institute, 80% of meals are eaten with other people.

Chart 14 Food Expenditure Profile 2000-2020

Source: Euromonitor International from national statistics/Eurostat/UN/OECDNote: In Constant 2014 prices

Drinking Habits

A study published in April 2014 showed that the frequency at which people drink alcohol has

declined. According to the study by Entreprise et Prevention, 10% of French people drink an

alcoholic drink every day, compared with 14% two years ago. The same study revealed that

only 20% of French people regularly go to drinking establishments, compared with 33% in the

UK and 48% in Spain. When they do go to a bar or café, 44% said they always order an

alcoholic drink.

Alcohol is usually consumed with food – beginning with an aperitif (beer, wine, champagne, orstronger drink such as pastis, for example) before the meal, then wine with the meal and

perhaps a digestif in the form of a stronger alcohol at the end. Drinking without food is less

common, although binge drinking is a growing phenomenon and is a concern.

Socialising with colleagues over drinks is a recent trend, and is known as ―les afterworks.‖

Bars and cafés often advertise their afterwork events and promotions, and guides to the best

places for after work drinks can be found online. An article on the website for startups,

maddyness.com, showed that 81% of respondents considered les afterworks essential for the


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well-being of a company. Sales people have the most afterworks evenings, with 32% of them

socialising after office hours, 28% of people working in marketing and design and 15%

engineers and production workers go out for drinks with colleagues.

Alcohol is on sale in a wide range of outlets including supermarkets, specialist wine shops or

general grocers. People living in wine regions will often buy their wine directly from thewinemaker. In spring and autumn there are ―foires au vin‖ or wine fairs where people can benefit

from lower prices, particularly when they buy larger quantities of wine. These events attract

serious collectors and consumers looking for bargains.

There has been a trend towards capsule coffee makers such as Nespresso, which are seen

as desirable because of their efficiency and the quality of the drinks they make. SodaStream

machines are also very popular – in 2013 around 5% of homes had a SodaStream machine.

People use them to make their own sparkling water from the tap, as well as making sodas. One

consumer said she liked ―the practical, time saving aspect; we always have sparkling water in

the house without carrying lots of bottles and we do not have to pay for litres of fizzy drinks at

the checkout.‖

According to an article on lepoint.fr in January 2013, French consumers have doubled the

amount of tea they drink over the past 20 years. Tea in France tends to be served without milk,and fragrant teas rather than basic British-style blends are more popular. Drinking tea is often

seen as a sophisticated or healthy choice.

The rise of sophisticated middle class tea drinkers

Drinking fine teas is becoming very popular in France, and is seen as something quite

sophisticated and cosmopolitan. Fragrance is important – if someone is offering a choice of

different teas they will often offer to let you smell the tea le

Documents

Consumer Lifestyles in France