Food & Drink sector

An Expert's View about Food , Beverages and Tobacco in Italy

Posted on: 25 Nov 2011

The F&D industry is the second Italian industry after the metal working one and it becomes the first supply chain in the country if considered together with agriculture, satellite industries and distribution, transforming 70% of raw materials in Italy (2010 figures).

Food & Drink sector in Italy Although the Italian F&D market has a very wide selection of local products accompanied by a strong and world famous culinary tradition, UK companies can find here an interesting and challenging opening Market overview The F&D industry is the second Italian industry after the metal working one and it becomes the first supply chain in the country if considered together with agriculture, satellite industries and distribution, transforming 70% of raw materials in Italy (2010 figures). Total turnover for 2010 was ?124 bn with a 3.3% growth on the previous year. This industry includes 6,500 small, medium and large companies and employs almost 410,000 workers. F&D is also ambassador of made in Italy in the world, since 76% of its exports consists of branded industrial products with a value of almost ?21 bn in 2010. Key opportunities ? Major supermarkets have increased their private label product ranges. This is an area where the UK industry might find a market entry. ? The beer market is highly diversified and sophisticated. In the first 5 months of 2011 4.7 million hectolitres of beer have been sold, +1.7% than previous year. About 1,500 brands are manufactured and/or distributed in Italy and less than 2/3 of consumption (28,6 litres per person per year in 2010) is satisfied through local production. ? Organics . Italy confirms its leadership for number of operators (47,663) and also for production and product variety. It holds the second place for surface (more than one million hectares). Purchases have increased by 11% in the first 4 months of 2011. Although 52% of production takes place in the south, consumption is definitely concentrated in the north (70% of total purchases is organic against 8% in the southern Italy). There are about 1,000 independent shops in Italy specialised in organic F& D products. ? The Retail Trade sector includes about 19,000 points of sale for a total sales surface of 17 million sqm. The market is dominated by 5 major retail groups (Esselunga, Auchan, Coop, Conad,, Selex,) which together account for about 60% of all retail sales. ? Speciality products . Italian consumers are highly discerning and sophisticated. They search more for quality and speciality/genuine products than for price. Although quantities cannot be high, the area of high quality and typical niche products is very successful in Italy. ? Food service is an incredibly high-growth sector with a turnover of ?750 bn, ?10bn more than 2009, and a target of 12 million people eating out every day. Latest export opportunities ? Food & Drink Latest export opportunities - Italy Getting into the market The main route to market is via wholesalers/distributors and, to a lesser degree, agents. Italy is a ?long? country with deep differences between North and South and it is often necessary to work with more than one business partner to obtain national coverage. Some supermarket chains purchase direct. However, in-country support from a local and already introduced distributor is crucial when introducing a new product to the market. More about doing business in Italy Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists based overseas ? or contact your local international trade team. ? Valeria Notari , Head of F& D Unit, British Consulate-General, Milan, Tel: +39 02 72300 232 or email: valeria.notari@fco.gov.uk ? Alessandra Carminati , British Consulate-General, Milan, Tel: +39 02 72300 218 or email: alessandra.carminati@fco.gov.uk Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events ? Food & Drink Major Events Trade fairs still play an important role in Italian business, especially due to the fact that face-to- face relationship is key to successful agreements. Major trade fairs for food and drink in 2012 are: Marca ? Own label products date: 18-19 January 2012 www.marca.bolognafiere.it SIGEP ? Supplies for ice cream, confectionery and artisan bakery Date: 21-25 January 2012 www.sigep.it Sapore ? F&D for the catering industry Date: 25-28 February 2012 www.saporerimini.it CIBUS ? General F&D industry www.cibus.it Date: 7-10 May 2012 Salone del Gusto ? International F&D with Slow Food criteria Date: October 2012 www.salonedelgusto.it Useful links More about OMIS and other UKTI services for exporters
Posted: 25 November 2011

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