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DATA & TRENDS EUROPEAN FOOD AND DRINK INDUSTRY 2014-2015

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Page 1: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

DATA & TRENDS

EUROPEAN FOOD AND DRINKINDUSTRY2014-2015

Page 2: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

EU FOOD AND DRINK INDUSTRY FIGURES

€1,244 billionLargest manufacturing sector in the EU

4.2 million peopleLeading employer in the EU

1.8%of EU gross value added (GVA)

CONSUMPTION

14%of household expenditure on food and drink products

EXTERNAL TRADE

€91.7 billionExports

R&D EXPENDITURE

€2.8 billion€64.1 billionImports

€27.6 billionTrade balance

18%EU market share of global exports

2013 data2012 data2014 dataFor definition, see page 23

Sources: Eurostat, UN COMTRADE, OECD

1

2

3

4

TURNOVER 1 VALUE ADDED 2

4

1

EMPLOYMENT1 SMEs

49.6%of food and drink turnover

63.3%of food and drink employment

2

289,000NUMBER OF COMPANIES2

3 2

Page 3: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

INTRODUCTIONThis year’s edition of the ‘Data & Trends of the European Food and Drink Industry’ report offers a comprehensive picture of the structure and economics of Europe’s food and drink sector.

The EU food and drink industry is a key pillar of the EU economy, outperforming a large number of other EU manufacturing sectors. It is the largest manufacturing industry in the EU in terms of turnover, value added and employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food and drink companies.

This report covers the whole EU-28 food and drink industry, which is identified by the NACE rev2 codes C10 (food products) and C11 (drinks).

CONTENTS

EU single marketContribution to the EU economy

Employment

Small and medium-sized enterprises

Sub-sectors at EU level

Sub-sectors at national level

The national picture

R&D and innovation

Consumption

Food supply chain

EU food and drink industry figures01 World marketsTrade figures

Trade figures by sub-sector

2015 trade trends

EU food and drink market share

Food and drink industries worldwide

Global trends in R&D

Future challenges and opportunities

Key food and drink companies

Glossary23

Flash the code below for the interactive content of the report

Global ranking

European ranking030506070809101112

13151617181920

2122

Page 4: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

03 EU single market

EU single market

CONTRIBUTION TO THE EU ECONOMYThe largest manufacturing sector in terms of turnover, value added and employment

• The food and drink industry is a major contributor to Europe’s economy, ahead of other manufacturing sectors, such as the automotive industry.

• The industry maintains the characteristics of a stable, resilient and robust sector.

• In 2014, the production of the sector was higher than any previous annual production since 2008.

• The EU food and drink industry turnover exceeded €1.2 trillion (2013) and value added reached €206 billion (2012).

1.8%Contribution of the food and drink industry to EU gross value added (GVA)

12.8%Share of food and drink value added in manufacturing

15%Share of food and drink turnover in manufacturing

Recent developments in turnover, value added and employment

For definition, see page 23

% change 2012-2013

2012

289

4.25

206

1,062

2013

-

4.22

-

1,244

-

-0.6

-

17.1

Value added (€ billion)

Turnover (€ billion)

Number of employees (million)

Number of companies (1,000 units)

Sources: Eurostat (SBS), FoodDrinkEurope calculations

1

1

Page 5: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

04 EU single market

Production in the EU manufacturing industry (2008-2014)

Pharmaceutical

Food and drinkAutomotive

Machinery and equipment

Manufacturing

Contribution of the food and drink industry to the EU economy (2012,%)

1.8%Food and drink manufacturing industry

3.9Other industries

13.4Other manufacturing industries

19.316.65.9 1.7

37.5

Financial and real estate activitiesConstruction

Public services

Services and cultureAgriculture

19.1Industry

Source: Eurostat (SBS)

Source: Eurostat (STS)

Share of value added in the EU manufacturing industry (2012,%)

12.8%Food and drink products

Fabricated metal products11.89.89.3 Automotive

Machinery and equipment

Others56.3

Source: Eurostat (SBS)

Share of turnover in the EU manufacturing industry (2012,%)

15%Food and drink products

129.78.9

AutomotiveCoke and petroleum products

Machinery and equipmentOthers54.4

Source: Eurostat (SBS)

2008 2009 2010 2011 2012 2013 2014

% c

hang

e

Page 6: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

-2

0

2

4

6

8

10

12

2007 2008 2009 2010 2011 2012 2013 2014

% c

ha

ng

e

05 EU single market

Average number of persons employed per company (2012)

1184131149

ChemicalsAutomotive

Machinery and equipment

Fabricated metal productsManufacturing

16Food industry

EMPLOYMENTLeading employer in the EU

• Compared to other manufacturing sectors, the EU food and drink industry is a key job provider and a relatively stable employer.

• On average, labour productivity in the food and

drink industry is lower than in most manufacturing sectors.

4.2 millionTotal number of employees

Employment in the EU manufacturing industry

Food and drink products

ManufacturingAutomotive

Pharmaceutical productsMachinery and equipment

15%Food and drink products

Share of employment in the EU manufacturing industry (2012,%)

Fabricated metal products

AutomotiveMachinery and equipment

Others

11.610.1 8

55.3

Source: Eurostat (SBS)

Sources: Eurostat (STS), FoodDrinkEurope calculations Source: Eurostat (SBS)

15%Share of food and drink industry employment in manufacturing

Labour productivity (2012, €1,000/person)

92

ChemicalsAutomotiveMachinery and equipment

Fabricated metal productsTextiles

Manufacturing

Food and drink products

46

66

54

44

35

Source: Eurostat (SBS)

65

For definition, see page 231

1

Page 7: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

06 EU single market

Contribution of SMEs and large companies to the EU food and drink industry (2012,%)

Large companies

SMEs

SMEs in the EU food and drink industry (2012,% by company size)

Value addedTurnover

Number of employeesNumber of companies

Micro-companies(0-9 employees)

Small companies(10-19 employees)

Small companies(20-49 employees)

Medium-sized companies(50-249 employees)

6.5

8.4

15.4

78.8

5.1

6

9.9

10.9

9.6

8.9

11.9

5.7

28.5

24.8

26.1

3.7

SMALL AND MEDIUM-SIZED ENTERPRISES

• The food and drink industry is a highly diversified sector with many companies of different sizes.

• SMEs generate almost 50% of the food and drink industry turnover and value added and provide two thirds of the employment of the sector.

• The food and drink industry counts more than 280,000 SMEs.

49.6%Turnover of food and drink

turnover

€528 billion

2.9 millionEmployees

€99 billionValue added

48.1%of food and drink value added

63.3%of food and drink employment

99.1%of food and drink companies

Value addedTurnover Number of employees

49.6

50.4

48.151.9

63.3

36.7

Number of companies

99.1

0.9

Sources: Eurostat (SBS), FoodDrinkEurope calculations

Source: Eurostat (SBS)

For definition, see page 231

Key role of SMEs 1

Page 8: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

07 EU single market

SUB-SECTORS AT EU LEVEL

A diverse food and drink industry

Turnover, value added, number of employees and companies in food and drink industry sub-sectors (2012,%)

Labour productivity (2012, €1,000/person)

8978

71 67 6253 50

35 3326

• The EU food and drink industry is diverse, with a variety of sectors ranging from fruit and vegetable processing to dairy production and drinks.

• The top 5 sub-sectors (bakery and farinaceous products, meat sector, dairy products, drinks and “various food products” category) represent three quarters of the total turnover and more than 80% of the total number of employees and companies.

• Labour productivity varies by sub-sector. For drinks, animal feeds and various food products it is higher than for overall manufacturing.

20%

32%Share of the meat sector turnover

Share of employees working in the bakery and farinaceous sector

Meat productsVarious food productsDrinks

Bakery and farinaceous productsAnimal feeds

Dairy products

Oils and fatsGrain mill and starch products

Processed fruits and vegetables

Fish products

Turnover Value added

20

Number of employees Number of companies

16

1413

11

7

6

54 2

21

19

18

15

10

6

53 2 2

32

2114

9

8

63

23 12 234

54

14

9

8

4

1

Sources: Eurostat (SBS), FoodDrinkEurope calculationsFor definition, see page 231

1

Food and drinkindustry

Manufacturing

Page 9: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

06 SMEs08 EU single market

SUB-SECTORS AT NATIONAL LEVEL

Top 3 sub-sectors by production value in EU Member States (2012, € billion)

Austria

Belgium

Croatia

Czech Republic

Denmark

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Netherlands

Poland

Portugal

Romania

Spain

Sweden

United Kingdom

1 2 3

5.3

6.6

1.0

2.5

6.2

2.5

32.6

44.4

2.5

2.4

4.9

22.8

9.7

12.9

2.8

2.5

20.4

3.9

20.7

3.8

4.6

0.8

2.3

5.7

2.3

26.1

24.4

1.9

1.6

3.7

17.6

8.8

7.1

2.0

2.2

15.4

2.6

19.7

2.3

4.4

0.6

1.6

1.9

1.2

24.3

21.9

1.7

0.9

2.9

17.6

7.3

6.1

1.5

1.2

9.7

1.9

11.9

Meat products

Drinks

Bakery and farinaceous products

Animal feeds

Dairy products

Oils and fats

Sources: Eurostat (SBS), FoodDrinkEurope calculations

Page 10: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

THE NATIONALPICTURE

A key industry in the economies of EU Member States

#1 employer

66%

The food and drink industry is the biggest employer inmanufacturing in more than half of the Member States

Share of turnover of the EU’s 5 largest food and drink producers

• The food and drink industry ranks among the top three manufacturing industries in terms of turnover and employment in most Member States.

• Germany, France, Italy, the UK and Spain are the

largest EU food and drink producers by turnover.

• The industry is an essential part of national economies. The share of the food and drink industry employment exceeds 15% in more than half of the Member States.

09 EU single market

Or by EurostatCompanies with more than 10 employees2012 dataSmall food and drink producers excludedCompanies with more than 20 employees

1

2

3

4

5

Food and drink industry data as published by FoodDrinkEurope National Federations (2013)1

AustriaBelgiumBulgariaCroatiaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyLatviaLithuaniaNetherlandsPolandPortugalRomaniaSlovakiaSloveniaSpainSwedenUnited Kingdom

Employment ranking

in manufacturing

Value added (€ billion)

Turnover (€ billion)

Number of employees

(1,000)

Number of companies

-121422313121311111133141

20.348.2

4.95.2

13.824.6

1.811.3

158.9175.214.511.4

26.4132.0

1.34.0

62.455.214.911.24.52.1

91.519.5

113.6

5.17.40.81.22.33.02.52.5

10.834.2

1.52.47.6

22.10.30.6

13.310.02.61.90.70.4

28.44.6

31.0

64.088.894.362.9

100.453.014.333.5

492.2555.3

78.094.039.2

385.026.242.8

133.0419.8107.0183.128.015.9

447.850.5402

3,8184,6385,8333,2408,415

630490

1,76915,7885,9201,3206,574

607 6,850

9591,4685,03514,21810,4218,5662,7661,938

27,1193,7846,020

3

3

3

3

3

3

3

3

3

2

2

4

4

4

5

4

3

Page 11: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

06 SMEs10 EU single market

R&D AND INNOVATION

Consumer expectations driving innovation

• Drivers of innovation can be divided into 15 trends, grouped along five axes, corresponding to general consumer expectations: pleasure, health, physical, convenience and ethics.

• Pleasure, including variety of senses and sophistication, is by far the leading axis with a 56% share in 2014.

• The soft drink sector is the leader in innovation in 2014, pushing dairy products to second place. Savoury frozen products follow, ranking third.

Pleasure

#1

Leading driver of food innovation

Soft drinks is the most innovative food sector in Europe

Food innovation trends in Europe (2013-2014,%)

Drivers of innovation in Europe (2013-2014,%)

Pleasure

Health

Convenience

Physical

Ethics

57.156.3

17.818.1

17.618.9

6.15.7

1.41.0

2013

2014

Variety of senses

Sophistication

Easy to handle

Natural

Medical

Time saving

Fun

Slimness

Exoticism

Nomadism

Energy, well-being

Vegetal

Solidarity

Ecology

Cosmetic

30.129.5

19.119.4

11.312.9

8.910.3

7.96.9

4.44.44.64.44.5

4.23.33.0

1.81.51.41.40.90.90.60.50.80.50.20.1

The 15 most innovative food sectors in Europe (2014,% of total European food innovation)

Soft drinks

Dairy products

Savoury frozen products

Ready made meals

Appetiser grocery products

Biscuits

Alcoholic beverages, appetisers

Chocolate products

Condiments and sauces

Cheeses

Desserts

Beers, ciders

Ice-creams

Cereals

7.2

Meat, delicatessen, poultry

6.9

6.2

6.1

5.3

4.9

4.9

4.3

3.8

3.6

3.4

3.1

2.7

2.6

2.5

Exoticism

Sophistication

Fun Vegetal Slimness CosmeticsTime saving Solidarity

Variety of senses Natural Medical

Energy, well-being

Easy to handle

Nomadism Ecology

Pleasure Health Physical Convenience Ethics

Food innovation trends in Europe

Source: XTC World Innovation Panorama 2015 Copyright © XTC 2015, www.xtcworldinnovation.com

Page 12: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

CONSUMPTIONFood and drink products: the second largest household expenditure

• In 2013, the share of household expenditure on food and drink products remained stable compared to the previous year.

• Across EU Member States, household expenditure on food and drink products varies from 11% to 32%.

• Since 2010, food manufacturing prices have risen at a lower rate than agricultural prices. Food manufacturing prices reflect agricultural raw material prices and other input costs.

• Over the past 5 years, food prices paid by consumers (i.e. retail prices) have grown by 2% per year on average, in line with inflation.

14%

€1,066 billion

Share of EU household expenditure on food and drink products

EU household expenditure on food and drink products

11 EU single market

Household consumption expenditure on food and drink products by Member State (2013,% of total expenditure)

Latvia

Romania

Estonia

Poland

32

29

27

26

21

21Hungary

21 Bulgaria

20 Slovakia

19

Czech Republic

19Portugal

18 Greece

Slovenia 17

16 Cyprus

16 Finland

15Italy

15France

15 Croatia

15Belgium

15Malta

14Sweden

14

Spain

13Ireland13Denmark

13Netherlands12

GermanyLithuania

Austria 11

Luxembourg 11

11United Kingdom

14%Food and drink products

Price developments in the food chain (price indices, 2010=100)Breakdown of EU household consumption expenditure (2013,%)

Housing, water and energy2513

9 Recreation and cultureTransport

Restaurants and hotels8Others31

Source: Eurostat (National accounts)

Sources: Eurostat (National accounts), FoodDrinkEurope calculations

Sources: Eurostat (Prices) and DG Agriculture and Rural Development

2010 2011 2012 2013 2014

100

120

140

InflationAgricultural pricesFood manufacturing pricesFood consumer prices

Page 13: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

12 EU single market

FOOD SUPPLY CHAIN

• In 2012, there were 24 million people employed in the food supply chain.

• The total turnover exceeds €3.8 trillion and value added almost reaches €680 billion.

• Around 31 million professionals work in the extensive food supply chain across the EU, from agriculture and the input industry to food and drink services.

11%

6%

Share of the food supply chain in EU employment

Share of the food supply chain in EU gross value added

Driving forces in the food supply chain: agriculture, the food and drink industry, wholesale and retail

Wholesale of agricultural and food productsFood and drink retail

Agriculture

Employment in the extensive food supply chain (2012,%)

Wholesale of agricultural and food productsFood and drink retail

Food and drink industryAgriculture

Turnover, value added, employees and companies in the food supply chain (2012,%)

33

Turnover Value added Number of employees Number of companies

15 8 2

29 24 26 6

2

8948

18

31

302811

Input industry

Food and drink services

Structural overview of the food supply chain (2012)

Value added (€ billion)Turnover (€ billion)

Number of employees (million)

Number of companies (1,000 units)

Agriculture

12,248

11.6208409

Food and drink industry

2894.3

2061,062

Wholesale of agricultural and food products

Food and drink retail

3382

104

1,255

822

6.2160

1,132

Source: Eurostat (National accounts, SBS, FSS, Economic Accounts for Agriculture)2010 data1

1

1

14%Food and drink industry

6 20

38 1

21

Page 14: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

13 World markets

World markets

TRADE FIGURESRecord trade surplus of €27.6 billion

• EU food and drink exports doubled over the past decade to reach €91.7 billion in 2014.

• More than one quarter of European food and drink exports are sold to non-EU countries and at a growing rate. EU exports to most key markets increased in 2014, with the exception of Russia.

• EU food and drink imports increased by a moderate 2% in 2014, in value and volume.

• NAFTA remains by far the EU’s largest trading partner by region, followed by EFTA, ASEAN, the ACP group of countries and Mercosur .

28%72%

Extra EU exports

Intra EU exports

Evolution of EU food and drink trade balance (2010-2014, € billion)

€91.7 billionExports

€64.1 billionImports

€331.4 billion

Total intra and extra EU exports of food and drink products (2014)

0

20

40

60

80

100

2010 2011 2009 2010 2011 2012 2013 2014

Trade surplus

Imports

1

1

2

Exports and imports refer to extra EU trade, unless otherwise specified

For definition, see page 232

1

Sources: Eurostat (Comext), FoodDrinkEurope calculations

Page 15: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

14 World markets

EU food and drink trade by region (2014, € million)

ExportsImports

Total trade

NAFTA18,068

6,13924,207

EFTA8,6887,003

15,690

CIS 7,653 1,752

9,404

Balkans 1,985 947

2,932

ASEAN 5,769

9,75715,526

ACP 8,5205,363

13,882

Mediterranean countries

5,4332,019

7,452

GCC 5,313 42

5,355

Andean Group 547

1,992 2,538

MERCOSUR 1,96111,957

13,919

Top EU trading partners (2014, € million)

Exports ImportsUS14,566

Russia6,335

Norway3,146

China5,583

Switzerland5,304

Japan4,607

Hong Kong3,662 Canada

2,592

Saudi Arabia2,219

Australia2,348

Brazil6,706

US4,853

Thailand2,549

Argentina4,341

Switzerland4,137

China3,655

Indonesia3,647 Turkey

2,505

Malaysia1,765

Norway1,989

Sources: Eurostat (Comext), FoodDrinkEurope calculations

Page 16: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

15 World markets

TRADE FIGURESBY SUB-SECTOR

• Top 3 best performing exports: dairy products +10%, chocolate and confectionery +9%, grain mill and starch products +9%.

• Top 3 best performing imports: chocolate and confectionery +17%, dairy products +10%, prepared animal feeds +10%.

• The combined exports of European drinks, dairy and meat products totalled €47.8 billion in 2014.

51%

61%

Combined export market share of the drinks, dairy and meat product sectors

Combined import market share of oils and fats, fish and seafood products, processed fruits and vegetables

Diversity of EU food and drink trade

Export market share by sector (2014,%) Exports and imports by sector (2014, € million)

Drinksof which: spirits wine mineral waters and soft drinksVarious food productsof which: chocolate and confectionery processed tea and coffeeMeat productsDairy productsProcessed fruits and vegetablesOils and fatsPrepared animal feedsBakery and farinaceous productsFish and seafood productsGrain mill products and starch products

Exports Imports

2014

25,8829,6309,0162,934

21,3395,6992,017

10,85711,0475,4784,8003,1643,8873,511

3,073

5,0761,3622,442

87210,3892,6892,0076,949

8718,254

16,708869667

16,5911,747

28

12 12

6

5 4

4

3

3

2014

-4

% change 2013-2014

-2

-2

-6

2

9

9

10

7

7

5

3

9

-1

-2

-1

-1

1

4

17

3

10

5

10

6

6

6

% change 2013-2014

23

DrinksVarious food products

Meat productsDairy products

Processed fruits and vegetablesOils and fatsBakery and farinaceous productsFish and seafood products

Prepared animal feedsGrain mill and starch products

Sources: Eurostat (Comext), FoodDrinkEurope calculations

Page 17: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

16 World markets

2015 TRADE TRENDSHighest first quarter exports

• During the first quarter of 2015, EU food and drink exports increased by 6%, compared to the same quarter in 2014 and exceeded the level of the previous five years.

• The top 3 best performing exports include: food preparations, meat products, oils and fats.

• Imports of chocolate and confectionery products, as well as processed fruits and vegetables, increased most significantly.

+37%

€22.8 billionExport growth of EU food preparations

First quarter EU food and drink exports

2015

Trade exports and imports (Q1 2015, € million)

Q1 2014 Q1 2015Exports % change 2014-2015

10

-13

37

9

9

9

10

10

5

2

Meat productsDairy products

Spirits

Wine

Processed fruits and vegetables

Oils and fats

Chocolate and confectionery

Food preparations

Bakery and farinaceous products

Prepared meals and dishes

2,4042,8381,9681,8991,3091,1951,237

731856867

2,6372,4752,1382,0671,4311,3091,2931,001944888

Fish and seafood products

Processed tea and coffee

Grain mill and starch products

Sugar

Q1 2014 Q1 2015Imports

Meat products

Spirits

Wine

Processed fruits and vegetables

Oils and fats

Chocolate and confectionery

3,7573,8501,9431,651

631538476436589302

4,1133,9872,1891,793

738577517459385311

-35

9

9

3

17

5

4

13

7

9

% change 2014-2015

Trends in EU food and drink exports (2010-2015, € billion)

20102011201220132014

4

5

6

7

8

9

Q1 Q2 Q3 Q4

Sources: Eurostat (Comext), FoodDrinkEurope calculations

Page 18: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

EU FOOD AND DRINK MARKET SHARE

• Worldwide, total exports almost tripled in the period 2003-2013.

• The EU remains the world’s largest exporter of food and drink products ahead of the US, China and Brazil.

• EU share in global food and drink exports is currently below the 2003 level, but recovering from a low in the 2010-2013 period.

• The EU ranked as the second largest importer just after the US, followed by Japan, China and Russia.

• EU market share in China’s food imports recorded steady growth over the past decade.

14%EU share in global food and drink imports

18%EU share in global food and drink exports

Number 1 exporter and number 2 importer of food and drink products in the world

17 World markets

Share in global food and drink exports(2003-2013,%)

20

20032013

European Union

US

China

Canada

Brazil

India

Thailand

Indonesia

Argentina

18

13 12

6 7

6 7

5 4

2 4

2 5

4 4

3 3

Market share of China’s food and drink imports (2003-2013,%)

EU evolutionary

US

New Zealand

Indonesia

Malaysia

Australia

Sources: UN COMTRADE, FoodDrinkEurope calculations

Market share of US food and drink imports (2003-2013,%)

EU evolutionary

Canada

Mexico

China

Australia

Thailand

0

5

10

15

20

25

30

2003 2005 2007 20112009 2013

0

4

8

12

20

16

2003 2005 2007 20112009 2013

Page 19: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

18 World markets

FOOD AND DRINKINDUSTRIES WORLDWIDE

Top 3 food and drink producers: the EU, the US and China

• The global comparison shows that the EU food and drink industry plays a key role in terms of turnover, employment and total number of companies.

• The EU ranks sixth in terms of contribution of food

and drink manufacturing to total manufacturing turnover, behind New Zealand, Australia, Brazil, Canada and Russia.

• China heads up the ranking as the country with the largest number of food and drink manufacturing companies (400,000).

• The global trust in the food and drink industry is significantly higher than trust in business.

#1

Trust

The EU is the leading food and drink producer in terms of turnover

The food and drink industry is more trusted than business worldwide

Distribution of turnover, number of employees and companies in food and drink industries worldwide (2012/2013)

EUChinaUSJapanBrazilMexicoRussiaIndiaCanadaAustraliaSouth KoreaNew Zealand

1,244767578466169102999572623227

Turnover (€ billion)

Employees (1,000)

Number of companies

% of total manufacturing turnover

151113122212159

1623

647

4,2206,7401,4141,4271,626

7931,3001,700

28822017981

289,000400,000

25,79859,45832,000

170,00043,01636,8816,5267,507

23,9293,302

Glo

bal

US

Braz

il

Irela

nd UK

Swed

en

Net

herla

nds

Ger

man

y

Fran

ce

Spai

n

Italy

Pola

nd

Turk

ey

Russ

ia

S. A

frica

UA

E

Indi

a

Chin

a

Trust in the food and drink industry vs. business worldwide (2014,%)

62

48

68

51

73

59 60

36

68

44 48 46

65 57 55

42

57

30

58 62 68

79

65 77

56

71

37 45

32 43

36

51 48

63

36

61

Food and drink industryBusiness

Source: Edelman Trust Barometer

1

1 2

2011 data 2009 data12

Source: FoodDrinkEurope compilation, based on official national statistics and industry reports

Page 20: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

19 World markets

GLOBAL TRENDSIN R&D

• Out of the top 2,000 leading companies worldwide in R&D, 59 operate in the food and drink sector. Together, these companies invested €8.6 billion in R&D in 2013, €2.6 billion out of which were invested by 16 food and drink companies based in the EU.

• Distribution of the 16 EU food and drink companies: The Netherlands and United Kingdom 4; Germany 3; France 2; Denmark, Belgium and Ireland 1.

• The EU food and drink industry has a lower R&D investment intensity compared to other food and drink industries worldwide.

• R&D investment intensity varies within the EU, with higher levels in Northern countries.

0.27%EU R&D private investment as a share of food and drink output

Sustained levels of R&D investment

R&D private investment in the food and drink industry listed in the world’s top 2,000 companies (2013)

US

R&D investment

(€ billion)

EU

Switzerland

Japan

South Korea

New Zealand

Share of world regions

(%)

Number ofcompanies

15

16

2

19

Private investment of the food and drink industry in R&D as a percentage of output in the EU (2010-2012,%)

201220112010

Private investment of the food and drink industry in R&D as a percentage of output (2012,%)

Norway

0.73

0.57 0.53

0.36 0.27

Total

33.1

30.5

16.6

15.6

100 59

Source: The 2014 EU Industrial R&D Investment Scoreboard, JRC

Sources: OECD STAN and Eurostat (National Accounts), FoodDrinkEurope calculations

1.7

1

0.1

2.8

2.6

1.4

1.3

3

1.6 0.1

8.6

1

1

2

Netherlands

United Kingdom

Finland

Belgium

France

Denmark

Portugal

Ireland

Sweden

Germany

Slovenia

Spain

Austria

Hungary

Italy

Greece

Estonia

Czech Republic

Poland

Romania

Slovak Republic

EU2

Including tobaccoData refer to 21 of the 28 EU Member States2009 data for Japan, 2010 for Korea and the US

1

2

3

EU2Korea 3Japan3 US30.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

Page 21: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

20 World markets

FUTURE CHALLENGESAND OPPORTUNITIESTrends and players driving change worldwide

• In 1960, one hectare of land fed 2 people while in 2050 one hectare of land will be required to feed 5 people.

• Natural resources, upon which food production relies, will come under increased pressure in the future to meet a growing demand for food worldwide.

• Climate change increases the likelihood of more extreme temperatures and unpredictable weather events, which affect food production.

• By 2030 China is expected to overtake the US and become the largest economy in the world.

• In 2050 the top three economies in the world (China, the US and India) will each be richer than the next five (Indonesia, Japan, Germany, Brazil and Mexico) put together.

60%Increase in global demand for food by 2050

9 billionGlobal population in 2050

Top 10 economies in 2050 (nominal GDP, $ billion)

+60%Demand for food by 2050

+45%Demand for energy by 2030

+30%Demand for water for agriculture by 2030

Future global challenges (% increase)

Ranking in 2014

2105,916 China

US

India

Indonesia

Japan

Germany

Brazil

Mexico

UK

France

70,913

63,842

15,432

11,367

11,334

10,334

9,826

9,812

9,671

1

9

16

3

4

7

15

6

5

Arable land per capita (hectares in use per person)

World

Developed countries

Developing countries

0.44 0.24 0.20 0.18

0.32 0.19 0.15 0.14

0.67 0.46 0.42 0.41

1960 2005 2030 2050

Past and projected global temperature change

Scenarios

Observed

Very high GHG emissions

Below 2°C increase

Source: The Economist Intelligence Unit

Sources: The Future of Food and Farming (2011), FAO and Foresight

Source: World agriculture towards 2030/2050: the 2012 revision, FAO

Source: Climate Change 2014: Synthesis Report, IPPCAt market exchange rates1

1

1900 1950 2000 2050 2100

6

4

2

0

–2

(˚C

re

lati

ve t

o 1

98

6–

20

05

)G

loba

l mea

n te

mpe

ratu

re c

hang

e

Page 22: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

KEY FOOD AND DRINK COMPANIESThe EU food and drink industry is comprised of large companies and SMEs. Large companies account for 50.4% of EU food and drink turnover, 51.9% of value added and 36.7% of employment in the sector.

Ranking of global agri-food companies by global food and drink sales

Name Headquarters Main sectors

CargillNestléPepsiCo, Inc.BungeJBSAnheuser-Busch InBevThe Coca-Cola CompanyArcher Daniels Midland CompanyTyson FoodsDuPontMondelez InternationalMarsUnileverHeinekenDanoneSuntorySABMillerLactalisGeneral Mills Inc.FonterraKraft Foods GroupKirin HoldingsConAgra Foods Inc.Asahi GroupDiageoRoyal FrieslandCampina

USCH USUSBRUSUSUSUSUSUSUS

NL/UKNL FRJP

USFRUSNZUSJP

USJP

UKNL

99.7175.4149.9542.8138.6035.2534.4532.3827.6126.0125.6524.7221.5321.1921.1417.5017.2416.0013.7713.7113.6413.1613.11

12.7312.2911.30

multi-productmulti-product

beverages, snacksmulti-product

meat, dairy beer

beveragescereal processing

meatmulti-product

confectionery, snacks, dairyprepared foods, confectionery

multi-productbeer

dairy, water, baby & medical nutritionalcoholic beverages

beerdairy

prepared foodsdairy

multi-productbeer, alcoholic beverages

prepared foodsbeer, alcoholic beverages

alcoholic beveragesdairy

21 Key food and drink companies

Figures have been converted to Euro with ECB bilateral annual exchange rates series, but only figures in the original currency are relevant1

Sales (€ billion)1

Page 23: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

Ranking of European agri-food companies by global food and drink sales

Name Headquarters Main sectors

NestléUnileverHeinekenDanoneLactalisDiageoRoyal FrieslandCampinaArla FoodsDSMCarlsbergFerreroAssociated British FoodsPernod RicardDanish CrownSüdzuckerKerry GroupParmalatOetker GroupRed BullVionBarry CallebautAgrokorBongrain / SavenciaTereosLVMHTate & Lyle

CH NL/UK

NL FRFR

UKNLDK NLDK

ITUKFR

DK DEIEIT

DEATNLCHHRFRFRFR

UK

75.4121.5321.1921.1416.0012.2911.3010.619.188.658,408.137.957.786.015.765.555.255.11

4.994.804.674.614.303.973.82

multi-productmulti-product

beerdairy, water, baby & medical nutrition

dairy alcoholic beverages

dairydairy

multi-productbeer

confectionerysugar, starch, prepared foods

alcoholic beveragesmeat

sugar, multi-productmulti-product

dairy, fruit beveragesmulti-product

beveragesmeat, ingredients

chocolatemulti-product

dairysugar, multi-product

multi-productmulti-product

22 Key food and drink companies

Figures have been converted to Euro with ECB bilateral annual exchange rates series, but only figures in the original currency are relevant1

Sales (€ billion)1

Page 24: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

GLOSSARYAbbreviation of world regions

ACPAfrican, Caribbean and Pacific group of countries

Andean GroupBolivia, Colombia, Ecuador, Peru and Venezuela

ASEAN (Association of Southeast Asian Nations)Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam

BalkansAlbania, Bosnia-Herzegovina, Kosovo, F.Y.R.O.M , Montenegro and Serbia

CIS (Commonwealth of Independent States)Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine

EFTA (European Free Trade Area)Iceland, Liechtenstein, Norway and Switzerland

GCC (Gulf Cooperation Council)Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates

MercosurArgentina, Brazil, Paraguay, Uruguay and Venezuela

NAFTA (North American Free Trade Agreement)Canada, Mexico and the US

23 Glossary

EUFor trade data (pages 13 to 18), EU refers to the European Union as follows: EU-15 from 1995, EU-25 from 2004, EU-27 from 2007, EU-28 from 2013.

For other pages, EU refers to the 28 Member States.

Gross value added (GVA)The gross value added is the value of goods and services produced by a sector minus the cost of the raw materials and other inputs used to produce them. GVA measures the contribution to the economy of each individual sector.

Labour productivityLabour productivity is calculated as the gross value added (GVA) divided by the employed population. Labour productivity provides a measure of the efficiency of the workforce to produce goods and services.

Small and medium-sized enterprises (SMEs) From Eurostat’s Structural Business Statistics database: micro = less than 10; small = 10 to 49; medium-sized = 50 to 249; large = more than 250 employees (the SBS size-class data are solely based on the definition relating to the number of employees and not to the turnover level).

Value added The value added at factor costs is the gross income from operating activities after adjusting for operating subsidies and indirect taxes.

It can be calculated as the total sum of items to be added (+) or subtracted (-): turnover (+); capitalised production (+); other operating income (+); increases (+) or decreases (-) of stocks; purchases of goods and services (-); other taxes on products which are linked to turnover but not deductible (-); duties and taxes linked to production (-).

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Page 26: DATA & TRENDS - FoodDrinkEurope...employment. The Data & Trends report provides in depth analysis of the EU single market, world markets, and a European and global ranking of food

FoodDrinkEuropeAvenue des Nerviens 9-311040 Brussels, BelgiumTel: +32 2 514 11 [email protected]

Published in September 2015