Reducing ultra-processing of food to address food divides and improve competitiveness

Reducing ultra-processing is not just a public health goal; it is also a strategic decision with implications on multiple levels—economic, health-related, and reputational. What are the challenges, obstacles, and levers for action to reduce ultra-processing of food in France?
ultra-processed food

Contents

Addressing dietary disparities and reducing the consumption of ultra-processed foods

For several years now, France has been experiencing high inflation, which has been particularly pronounced in the food sector. 

This situation has widened food inequality among the French population, as shown by the Institut Montaigne in its 2024 report in which iQo participated.

On the social front, the inflation crisis has exacerbated an already concerning situation regarding access to food. Faced with rising fixed expenses—housing, energy, and transportation—food has become the area where the lowest-income households cut back to balance their budgets. One in three French people is currently food insecure.

One aspect of the shift in consumption patterns is the use of ultra-processed foods: products characterized by the use of ingredients rarely found in home cooking (additives, texturizers, artificial flavors). Ultra-processed foods are any foods with a complex industrial formulation containing at least five ingredients (fats, sugar, salt, etc.), at least one of which is an additive not used in home cooking.

A growing reliance on ultra-processed foods

According to ANSES data (INCA 3 study) show that ultra-processed foods account for:

  • 30 to 35 percent of the energy intake of French adults, a trend that is particularly pronounced among people from the lowest socioeconomic groups.
  • Up to 45% among adolescents.


This reliance on ultra-processed foods is also more prevalent in urban areas, among low-income households, and among those pressed for time. 
It is estimated that 60 to 70 percent of the items on supermarket shelves today are ultra-processed foods.

Widespread throughout the agri-food production chain, this extensive food processing currently represents a regulatory blind spot, despite major health, economic, and industrial implications.

Targeted but Incomplete Nutrition Policies to Reduce Ultra-Processed Foods

Public initiatives related to food—NutriScore, Éco-Score, PNNS—have primarily focused on the nutritional composition of products (fat, sugar, salt) or their environmental impact. More recently, the Institut Montaigne has proposed a tax on added sugarsas an economic deterrent. However, none of these measures currently includes the industrial processing of food as a standalone evaluation criterion.

Scientific studies confirm the negative health effects of ultra-processed foods

Yet scientific studies point in the same direction. Research published by INSERM, INRAE, or Harvard School of Public Health demonstrate a clear link between regular consumption of ultra-processed foods (UPFs) and an increased risk of chronic diseases (obesity, metabolic diseases, cardiovascular disorders). In addition to these health effects, there are significant indirect costs to the public health system.

Every year, new scientific studies cast a negative light on substances found in many ultra-processed foods. Following the debate over nitrite salts (found in industrially produced deli meats) and artificial sweeteners, the focus is now on soy (in its ultra-refined or textured forms) and cheese-melting agents that are at the center of controversy. These repeated allegations are creating growing reputational pressure for brands, which find themselves exposed to consumer criticism and media skepticism.

Three High-Impact Issues in the Food Industry's Ultra-Transformation: Economy, Health, and Reputation

Reducing ultra-processing is not just a public health goal; it is also a strategic decision on multiple levels.

This situation is creating a domino effect: retailers are tightening their specifications, “clean label” startups are gaining market share, and some major brands are having to urgently reformulate their products or revise their marketing communications. The ability to anticipate these changes has become critical: companies that reduce their reliance on controversial substances and ultra-processing now are limiting their reputational risk and positioning themselves in a more sustainable market.

Underestimated Economic and Industrial Potential

Including the degree of processing in food policies would make it possible to move beyond a strictly nutritional or environmental interpretation of product quality. This would involve developing a more systemic approach that incorporates the nature of industrial processes as a factor explaining health risks, environmental impact, and societal costs.

This could also pave the way for a form of “qualitative” reshoring: less-processed products are generally less reliant on imported or synthetic ingredients, better suited to short supply chains, and often easier to align with consumers’ growing expectations (naturalness, transparency, simplicity).

Barriers to Overcome: Market Structure and Regulatory Framework

Despite this potential, several obstacles are hindering the transition to less-processed products.

However, continuing to rely heavily on ultra-processing amounts to offloading part of the cost: health-related costs (through the healthcare system), environmental costs (importing synthetic or exotic ingredients), and reputational costs (crises related to additives or industrial practices). The issue is therefore not only technical; it is also strategic.

What steps can manufacturers take to reduce ultra-processing in food?

Manufacturers should view the reduction of ultra-processed foods as a driver of sustainable transformation to be incorporated into their long-term strategy.

Conclusion

Ultra-processing of food is a strategic issue that has yet to be adequately addressed in French food policies. By incorporating it into measurement, incentive, and regulatory tools, it would be possible to improve the overall quality of the food supply, stimulate responsible innovation in the agri-food industry, and better meet consumers’ growing expectations regarding health, naturalness, and trust.

But this transition will not happen without public support. Today, eating habits are shaped by significant constraints: less time to cook, a desire for convenience, and budget pressures. In this context, ultra-processed foods retain a competitive advantage. Without strong incentives to transform the industrial model—such as R&D grants, differentiated taxation, and consumer education—change will remain limited.

Agriculture & Agri-Food

Discover our expertise
thibaut venat strategy
Thibaud VENAT

iQo Partner
, Agriculture, Agribusiness, and Retail Strategy