Food and drink business growing
Market trends in Europe:
While other manufacturing
sectors are in decline, the
food and beverage industry
in Europe is doing well, a
recent study shows.
ST Data trends
CLMr
World ofHeineken 38 summer 2008
The food and beverage industry in the
European Union (EU) is not merely huge-
it is gargantuan. With a total turnover of
€870 billion in 2006, it is the single largest
manufacturing sector in the EU in terms of
turnover, value added and number of people
employed. More people work in the food and
drinks industry than live in, for example, the
Republic of Ireland.
These are among the conclusions presented
by the CIAA in its annual Data and Trends
report covering 2007. The CIAA is a
federation of national industrial associations,
sector associations and major companies
operating in the food and drink sector,
including Heineken. The CIAA acts as a
special interest organisation representing the
food and beverage industry at a European
level.
The study, a compilation of key economic
indicators on the agri-food industries in
the 27 countries of the EU, also shows that
the European food and drink sector is still
growing. In 2006, the latest year for which
figures were available, total turnover grew by
€20 billion compared with 2005, an increase
of 2.5 percent.
The beverage market makes up 15 per cent
of the food and drinks sector and 30 percent
of its exports. With exports topping €52
billion last year, the European Union is a net
exporter when it comes to edible and potable
goods. The export market is a healthy one,
showing growth in the lower double digits.
While sales in America are slightly declining,
the Asian market is growing rapidly.
Within the food and drink industry, beer is
big, especially when it comes to sales abroad.
Last year, almost €2 billion worth of beer left
the European Union for other markets. Beer
exports have been growing more rapidly
than others over the last decade or so, and
beer is now the seventh largest single export-
product in the industry.
According to the report, in terms of turnover,
Heineken is one of the biggest players in
the vast food and beverage sector of the
European Union. When it comes to European
sales, Heineken's grand total of €8.8 billion
is second only to Nestle's. This position will
be strengthened further with Heineken's
acquisition of Scottish Newcastle (€4.9
billion in sales last year).
In a world where most manufacturing is
moving from mature economies to less
developed ones, the future still looks bright
for the drinks industry. Investment is high and
productivity, already at €70.000 of added
value per employee, is on the rise. While
the EU is losing ground to other players in
the global market in relative terms, it is still
showing healthy growth. This situation is
unlike that of the US food and drinks industry,
which has lost almost a third of its market
share over the last ten years.
of the European Food and
Drink Industry
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