Food & Beverage
A Natural Growth Industry
January 2011
Table of Contents
Food & Beverage in Greece: A growth industry sector
Advantages and key business drivers
Areas of potential growth and business expansion
Success stories in trade and investment
Food & Beverage in Greece: A growth industry sector
F&B is the most dynamic and
high-growth sector of Greek manufacturing…
F&B enterprises represent 17.1% of total
manufacturing enterprises
Number of companies in the Greek F&B sector
16,500
16,000
Key Figures
15,715
15,500
15,000
1,270 are industrial companies with
prominent domestic and international
presence. The rest are SMEs
16.255
15,195
14,490
14,500
14,000
13,500
2004
2005
2006
2007
Almost 16,300 enterprises at industrial and
artisanship level
Sales account for 12 billion Euro covering
21% of total manufacturing
Employs 120,000 people covering 22% of
total employment in manufacturing
Pastries, snacks, confectionery and pasta
represent 2/3 of the enterprises, 1/3 of the
total turnover and absorb half of total
employment
Source: Foundation for Economic and Industrial Research (IOBE) - F&B Sector Annual Report 2009, Eurostat
…contributing decisively and steadily
to the country’s exports and EU diet
Share of the F&B industry exports in Greece’s
total foreign trade
13.00%
EU is the major export destination
for the Greek F&B products (2008)
26%
12.80%
12.60%
12.40%
12.30%
EU-27
12.30%
Rest of the world
12.20%
12.10%
12.20%
12.00%
74%
2005
2006
2007
2008
Source: Foundation for Economic and Industrial Research (IOBE) - F&B Sector Annual Report 2009, Eurostat
Outward looking by nature…
High rating of Greek F&B investments abroad
and prominent presence in international markets
Greek investments in developed regions by sector (2007)
Greek investments in developing regions by sector (2007)
Financial Services
Food & Beverage
2%
Financial Services
2%
3%
2%
10%
28%
4%
4%
Information & Communications
Technology
Retail & Wholesale Trade
Construction & Real Estate
5%
2%
2%
1%
Information & Communications
Technology
Food & Beverage
4%
4%
Construction & Real Estate
9%
Building Materials
Pacaging Materials & Machinery
Energy & Environment
55%
Mining
8%
Building Materials
8%
28%
Tourism, Travel, Leisure &
Entertainment
Other
Retail & Wholesale Trade
19%
Basic Metals
Machinery & Equipment
Other
Source: Invest in Greece, Policy & Planning Unit: Latest version survey entitled “Greek Investors in Foreign Markets 2001-2007”
Strong receiver of FDI…
Second strongest sector in Greek manufacturing
after chemicals
Foreign Direct Investments in the Greek manufacturing sector
(2003-2009) – Gross figures
13%
2%
17%
Food & beverage
Refineries
8%
16%
Chemicals
Metals
Machinery
Transport means
Rest
15%
Source: Bank of Greece, 2010
29%
…resistant and adaptive to the current financial crisis
Employment
• 5.5% increase in workforce in the
first half of 2009 contributing to
the alleviation of the crisis’s
consequences
Industry Production
• Despite the decrease in 2009
production (2.6% in food and
6.7% in drinks), F&B experienced
milder losses than those of the
total manufacturing sector
(10.6%)
Source: Foundation for Economic and Industrial Research (IOBE) - F&B Sector Annual Report 2009
Bakery, snacks, confectionery and pasta
is the largest subsector in terms of turnover
and employment
Employment by subsector (% classification)
Turnover by subsector (% classification)
1.60%
Meat Production & Processing
1.70%
Fishery products
7.00%
11.80%
16.50%
Fishery products
6.90%
Vegetable & Fruit Processing
Vegetable & Fruit Processing
10.40%
10.00%
Vegetable & Animal Oils & Fats
8.60%
Vegetable & Animal Oils & Fats
6.40%
Dairy Products
Flour Products
32.10%
16.80%
Prepared Animal Feed
Bakery, Snack, Confectionery &
Pasta Products
Drinks
2.70%
4.30%
Meat Production & Processing
12.10%
46.30%
Dairy Products
Flour Products
Prepared Animal Feed
3.00%
1.60%
Source: Foundation for Economic and Industrial Research (IOBE) - F&B Sector Annual Report 2009, Eurostat
Bakery, Snack, Confectionery &
Pasta Products
Drinks
Advantages and key business drivers
A privileged sector environment…
• Low operating costs
• Abundant raw materials of high quality
• Access to the emerging growth markets of Southeast Europe
and Eastern Mediterranean through the established production
and sales network of Greek enterprises
• Shift towards a low calorie, cholesterol free and vitamin-rich diet
throughout the western world favoring the Greek Mediterranean
diet
• Highly experienced and well-educated labor force
…offering plenty of benefits
to international entrepreneurs…
• A well-developed domestic retail / supermarket network that
guarantees timely distribution and has already attracted key
foreign players (Carrefour, Delhaize, Lidl)
• Strong focus on R&D. Innovative manufacturers and highly
specialized research centers develop new up-market and high
quality products.
Leaders in R&D, innovation and food technology are:
The Food Industrial Research & Technological Development
Company (ETAT)
The Institute of Agrobiotechnology
The Institute of Aquaculture
The University of Thessaly
…and a promising future as will continue to be
the steam-engine of Greek manufacturing
• Further development of small local production and reinforcement
of competitiveness
• Further reinforcement of R&D and innovation at industry level to
cover new consumer needs and preferences (i.e. demand for
convenience and specialized products based on safe, healthy and
high quality ingredients)
• Increasing demand and new consumer habits lead the way for
branded products
• Strategic alliances and further human resource exploitation are
key industry priorities in the immediate future
Source: Foundation for Economic and Industrial Research (IOBE) - F&B Sector Annual Report 2009, The Greek Economy in 2008 – Taseis Journal
The Greek F&B industry is supported
by a potent agricultural sector
• Agriculture accounts for 5-6% of GDP in Greece as compared to
1.5% of EU-15. Although the share of agriculture in total economy
diminished in the previous decade, continues to be at much
higher levels in comparison with other EU members
• Greek agriculture continues to provide jobs to a considerable
amount of people in Greece. Its share in total employment (17%)
is much higher than that of EU-15 (4.3%)
• 35 to 40% of the total agricultural land is cultivated with arable
crops, 20% with olive trees, 11% with cotton, 8% with fruits and
vegetables, 3.5% with vines and 1.5% with tobacco
Source: “A Brief Overview of Agriculture in Greece”, Pavlos D. Pezaros, Director of Agricultural Policy, Ministry of Rural Development & Food
The Greek F&B industry is supported
by a potent agricultural sector (2)…
• Fertile semi-mountainous and mountainous areas: 50-55% of the
cereals, 60-65% of olive trees, 70% of sheep and goat herds and
40-50% of bovine animals are cultivated or raised in these areas
• A big size of holdings: Statistically, about 800,000 of family-type
holdings appear to still be active in Greece
Source: “A Brief Overview of Agriculture in Greece”, Pavlos D. Pezaros, Director of Agricultural Policy, Ministry of Rural Development & Food
… characterized by a developing
and very promising organic segment
Reliance on organic food imports offers
space for business expansion to cultivators,
producers and processors
35%
65%
Production of
organic
foodstuffs
Imports of
organic
foodstuffs
• The sector of organic products mainly
consists of small, family-owned businesses
• Producers and processors of organic
products in Greece account approximately
for 7,810
• Latest available figures suggest that cereals
come first (38.3%) in organic cultivation
followed by olive trees (38.2%) and vines
(3.8%)
Source: ICAP Organic Farming & Products sector study (April 2009), ΔΗΩ (Organization for the Inspection and Certification of Organic Products)
Fish farming holds a discrete position
in Greece’s F&B industry
• Greece is the largest producer of sea bream
and sea bass in the Mediterranean
(370,000,000 fry & 150,000 tons of fish) and a
key supplier of European markets (85% of the
produced fish is exported
• Greek farmed sea bream & sea bass constitute
one of the four most important agriculture
products of Greece (together with olive
oil, tobacco and cotton), occupying the
second place in the Greek agricultural exports
• Approximately 100 companies, are engaged in
the Mediterranean Aquaculture in Greece, the
vast majority of which are small family businesses
Source: Sector data and statistics presented by Dias, Nireus and Selonda Aquaculture Groups
Fish farming holds a discrete position
in Greece’s F&B industry (2)
• 5 listed groups in the Athens Stock Exchange control over 70% of
domestic production
• Strong consolidation through mergers and acquisitions into larger
groups opting to become more powerful in the market
Key European Producers (2009)
3.20%
1.80%
4.40%
Greece
Consolidation Over Time
350
6.30%
Turkey
Spain
12.40%
48%
300
Italy
France
23.80%
Egypt, Morocco, Tunis
Other
260
229
250
200
330
318
315
302
193
175
167
150
Companies
125
98
100
70
50
0
1997
2000
2003
2006
2008
2010*
* Estimate
Source: Sector data and statistics presented by Dias, Nireus and Selonda Aquaculture Groups
Licenses
Areas of potential growth and business expansion
Abundant niche markets…
There is abundant opportunity to create value added in many
product categories in the Greek F&B sector, especially as the
global interest in healthful foods continues to expand:
Honey and nut based snacks
Macaroni products
Marmalades and pickled goods
Ready made meals and frozen food
Seafood
…offer great potential…
Meat and delicatessen products based on olive oil and other
healthy Mediterranean ingredients
Boutique and niche market goods including:
sprirulina and saffron, both widely known for
their therapeutic attributes
 mastiha and other herb products
unique sauces
baby foods
…for investment and business expansion
chocolates and confectionery
cheeses
specialty herb mixes
traditional spoon sweets
Liqueurs and fruit juices
herbal beverage products
organic products
Simple steps to Establish a F&B
manufacturing activity in Greece

Decide on geographical area, focusing on target market,
availability of raw materials, transportation and infrastructure

Explore space availability within Industrial Areas where set-up
is easier and faster

Issue licenses if the investment is to be located outside an
Industrial Area

Use our free support services for guidance and assistance,
saving valuable time
Success stories in trade and investment
Greece is the base of famous F&B brands
Your Investment Partner in the region
3 Mitropoleos St.
105 57 Athens, Greece
t. +30 210 3355700
f. +30 210 3242079
e. info@investingreece.gov.gr