France is an economically refined nation with a large, diverse, and sophisticated consumer base. While manufacturing has declined as a percentage of GDP, many of France’s remaining industries, such as aerospace and pharmaceuticals, are still world leaders and receptive to foreign partners and suppliers. Its comparatively affluent populace is a leading consumer of services, particularly in the digital, educational, and travel sectors.
The 2022 foreign investment projects report published on May 11, 2023, by Business France, lists 1,725 international investment projects that have created or maintained 58,810 jobs in France. The number of jobs created or maintained rose by a historic 31% compared with 2021[1]. In his report in the foreign investment projects in France in 2022, Business France highlighted that most of the foreign investment has been directed into manufacturing (51% of projects for 44% of jobs), with services accounting for 49% of projects and 56% of induced jobs. The energy and recycling (5% of projects), electrical and electronic equipment (5%) and agri-food (5%) industries were the main sectors targeted by projects. In 2022, they saw significant rises in the number of projects received, with increases of 87% in the energy and recycling sector and 17% for electrical and IT equipment.[2] These results underline the attractiveness of the French territory and prove that foreign investors still have confidence in France.
French Investments in Green Industry
Since 2017, the French government started investing intentionally in innovative technologies through its France Relance and France 2030 plans, funded respectively with 100 and 54 billion euros to accelerate France’s reindustrialization, boost certain key sectors for the ecological transition (green hydrogen, biomedicine, robotization, low-energy aircraft, nuclear), and make France a European leader in the green industry field. Beyond these strategic sectors, public investment plans also aim to support existing industries, including the so-called “heavy” industries in their decarbonization. This plan represents an opportunity for foreign investments to participate in this new industrial era.
There are opportunities for U.S. exporters with innovative products in various sectors, including green technologies, renewable energies, decarbonized energies, aerospace, food products, pharmaceuticals, microelectronics, logistics, retail and distribution, and healthcare equipment. Call centers, biotechnology, telecommunications, information and communication technology, e-commerce, e-mobility, advanced manufacturing, smart cities, and the environment are other high potential sectors. The French market for food products is mature, sophisticated, and well served by suppliers worldwide. Younger, environmentally conscious consumers and changing lifestyles contribute to France’s import demand for American consumer and food products. A full report, prepared by the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service for U.S. exporters of food products can be viewed on the USDA website.