The European Food and Beverage (F&B) segment is expected to attain a value of USD 19,950 Million by the year 2020. The F&B industry is one of the largest manufacturing sectors that contributes to the European economy. The industry accounts for roughly 4.25 Million workers in terms of employment generation; The industry is anticipated to attain growth dynamics of 6.8% on a year-on-year basis. The number of end-users of this industry is poised to attain a value of 140.5 Million by 2020. The user penetration for this market is likely to attain a value of 16.6% in the same year. The per capita average revenue is seen to attain a value of USD 142.
According to the global market database, the F&B industry accounts for 70% of the value chain associated with the European agricultural sector. The industry processes the raw material commodities produced by the agriculture vertical to obtain consumer-based products that are distributed across the market.
The economics associated with European Food and Beverage market
The economics associated with this industry states that the EU’s F&B segment employs 4.72 Million people through 294,000 companies. The overall consumption and household expenditure associated with this market account for 13.8% of the turnover generated in the year 2019. The rising disposable income is one of the key factors to propel market growth. The per capita spending capacity is hence directly proportional to the demand associated with this market. Moreover, it is seen that even the small, as well as medium-sized companies (SMEs), account for roughly 47.5% of the turnover on a cumulative scale. These SMEs account for 60.8% of the employment generation within this market.
According to the market database, the F&B industry is one of the key contributing factors to the growth dynamics associated with the EU. The market numbers have been studied using Global Market Database.
Trade associated with European F&B market
On understanding the export and import values associated with the F&B industry, it is seen that the external trade accounted for a value of USD130.09 Billion in the year 2019. In the same year, it was recorded that the industry attained an import value of USD 87.52 Billion. The trade balance was recorded to be positive, thus accounting for USD 42.58 Billion. In the past decade, it was recorded that the trade surplus associated with this market doubled. On a holistic scale, it was seen that the EU was estimated to account for 19% of the global exports in terms of the food and beverage sector. According to the market database, the industry accounts for 15.1% in terms of F&B manufacturing turnover. The region has invested a value of USD 3.43 Billion as of 2019 to further expand the market. The population’s changing consumption habits are one of the key factors that shift the trends associated with this market.
Key Players within European Food and Beverage market
The industry has been trying to enhance its competitiveness within its F&B industry. Moreover, the norms associated with manufacturing these products are also strictly monitored since the growth is highly based on consumer reviews. Nestle is one of the key market players associated with the EU’s food and beverage industry. The enterprise is essentially stationed in Switzerland. According to the market database, the company generated total sales worth USD 93,268 million in 2018. Food sales accounted for a value of USD 80,195 Million in the same year. The company ranked as the largest F&B company stationed within the EU.
Danone is another key player associated with this market that generated revenue worth USD 20,830 Million. The company has been adopting strategies in order to increase the lucrative sales associated with its focal sector.
According to the market database, consumers have been shifting towards healthy lifestyles like veganism and prefer organically based crop substances owing to the added health benefits. Therefore, the organization has been making an effort to establish the EU’s farm to form a strategy. Danone has joined a group of partners calling on the EU to adopt Nutri-Score as the mandatory front of the pack nutrition label. This initiative helps meet the demands associated with the rising change in consumer behavior. Moreover, accurate information on the label would help increase the transparency between the consumers and the manufacturing segment associated with this sector.