French agriculture: A difficult market to penetrate despite its potential
The French agricultural market, despite its significant potential, presents numerous challenges for new entrants. This article explores the potential of the French market, its strategic importance as a gateway to the European market, the complexities of its structure, success stories of AgTech products, and how a collective approach can optimize development in this sector.
Who is Maxence Guillaumot, Our FIeld Investigator
French cereals farmer and mechanical engineer, he began his career at CLAAS on the tractor development side. In 2022, after two years working as a business developer at Naïo Technologies, across various regions, he recognized the gap between new technologies and their markets. Since then, he has been assisting numerous AgTech companies in making informed business and product decisions. His close connection to the field and farmers is crucial in bringing specific market insights and an agro-economic perspective to his work.
1. The Potential of the French Market
France is Europe's largest agricultural power, with an impressive cultivated area and a wide range of products. The French market stands out for its 16 million hectares of field crops, 800,000 hectares of vineyards, 10,000 hectares of greenhouses, 200,000 hectares of orchards and 450,000 hectares of market garden crops. These figures show the scale and diversity of the opportunities available for AgTech innovations.
What's more, France is the European leader in terms of agricultural equipment sales, with a stable and growing market for certain segments such as agricultural robots. In 2022, the agricultural equipment market in France was valued at 9.5 billion euros, with a significant share generated by the sale of tractors (40,000 units). Agricultural robots, in particular, are growing fast, with a 500% increase in the number of field robots between 2018 and 2023, and just 1,250 milking robots sold in 2022.
2. The best gateway to the European market
France occupies a strategic position within the European Union, making it an ideal gateway to the European market. Its central geographical location and political and economic influence make it easier for successful French companies to expand into other European markets. In addition, France is the largest recipient of subsidies from the EU's Common Agricultural Policy (CAP), which strongly supports its agricultural sector and encourages the adoption of innovative technologies through numerous subsidies and organizations.
French farms are also recognized for their investment in advanced technologies, their large size operation and the quality of their products. These characteristics make France an attractive market for AgTech companies. What's more, the presence of numerous investment funds specialized in AgTech offers funding opportunities for startups and innovative companies. These investment funds can provide key data and valuable resources to attract early investors and convince innovative farmers to adopt new technologies. In short, France is not only a strategic gateway to the European market, but also a dynamic and innovative market, supported by significant subsidies and investment.
Agreenculture’s first prototype in a French vineyard
3. The complexity of this market
The French agricultural market is characterized by a complex structure in full evolution, with a majority of small and medium-sized family farms. These farms, often run by one farmer with the support of his or her family, face demographic and economic challenges. In 10 years, France has lost 20% of its farmers, and this trend is set to continue, with 59% of current farmers due to retire in the next 15 years. This is leading to farm consolidation and the need to invest in more efficient equipment to compensate for the shrinking workforce.
In addition, the French market is highly regulated and supported by subsidies, which can create barriers to entry for new players. Subsidies are mainly intended to encourage sustainable farming practices and modernize farms, but they can also complicate the competitive landscape.
The market can also appear rather conservative in its farming practices and less focused on Cartesian profitability, as subsidies and regulations disrupt this balance. French farmers may be reluctant to adopt new technologies or trust new players, especially if the product comes from elsewhere, for fear of not getting a good service or being left without support.
It's also important to understand the French language, which is key to doing business locally, but also the local culture, which is very different from other European countries and can be just as surprising from one region to another.
Naïo' Oz robot at a small farm
4. A Success story of agtech that have made their mark in France
First example : FarmDroid arrived in 2021 in France
FarmDroid, a Danish company specializing in agricultural robots, has successfully entered the French market in 2021 thanks to a well-thought-out strategy. The company dedicated its first season in France to pilot projects to ensure that its autonomous weeding and planting robot met the specific needs of French farmers. Here's how FarmDroid adapted its products and strategies for success:
Key points : Adapting the Product to Local Needs
Interface customization: FarmDroid translated its robot displays and manuals into French to improve accessibility for local farmers.
Compatibility with Local Tools and Techniques: The system was modified to work perfectly with planting and weeding practices specific to sugar beet in France, adjusting row spacing and planting depth to match local standards.
Strategic partnerships with local experts : FarmDroid has worked with a distributor specializing in weed control solutions and well established in the local market. This partnership has enabled FarmDroid to benefit from Stecomat's network and expertise, offering customers ongoing training and technical support.
Niche Market Entry and Progressive Expansion: FarmDroid adopted a niche strategy, initially targeting organic sugar beet farms, a sector where demand for chemical-free weed control was high.
This approach enabled the company to establish a solid position before expanding to other types of crops.
Results : A Rapid success and expansion
In just three years, FarmDroid managed to deploy around 100 robots in France, capturing almost the entire organic sugar beet market. This success is largely due to its strategic approach: working closely with early adopters to refine the product, actively participating in key agricultural events, and building a strong partnership with Stecomat to ensure comprehensive customer support and visibility.
Thanks to this focused commitment, FarmDroid has positioned itself as a leader in sustainable weed control and planting solutions in France, laying a solid foundation for future growth in new crop markets and a trusted brand in organic farming.
5. How the collective can help you optimize your development in this market
To succeed in the French market, it's crucial to understand its specificities and to rely on a solid network. The AgTech Collective can help you navigate this complex landscape by sharing knowledge, resources and networks. By working together, AgTech companies can overcome obstacles and optimize their development in France.
In conclusion, the French agricultural market offers significant opportunities for AgTech innovations, but it also presents complex challenges. By understanding the market's potential, its strategic importance and the complexity of its structure, and by drawing inspiration from success stories, new entrants can draw up a roadmap for success in France. The collective plays a key role in this process, facilitating access to the knowledge and networks needed to optimize development in this market.
Interested in the French market or European market ? Could your product bring something to the European farmers? Don't know how to prepare your market entry strategy? Would you like to gain a better understanding of these markets and have another look at your go-to-Market entry strategy? Contact us to discuss it.
Seederal Electrical Tractor, developed in France : Testing video