Italy is the land of pasta. This is no surprise, given that On average, an Italian consumes 23 kg of pasta per yearThis is the highest figure in the world, far surpassing consumers in Tunisia (17 kg per year) and Venezuela (13 kg), who complete the podium.
But not only that: Italy is also the world’s leading exporter of pasta, accounting for as much as 30% of the market, with annual sales of 2.6 billion euros in 2021, according to a ranking compiled by the Observatory of Economic Complexity.
And if we look at who the world's top importer is, we notice that U.S. imports 10% of all pasta produced.
In short, a business opportunity that needs no further explanation: Italian companies producing pasta, or otherwise engaged in the sector, can reap great economic benefits in Italy-US relations.
But what are the reasons why Are the USA such an attractive territory for Italian entrepreneurship? And why should our entrepreneurs target the USA for their internationalization processes?
In this article we will discover data that answers these questions, we will understand How to export pasta to the United States according to the latest American regulations, and we will learn how to maximize profits by increasing revenue from the US market, to fully exploit the business potential offered by this sector.
According to the most recent estimates by Monitor Deloitte for Intesa Sanpaolo, In the United States, one out of every three boxes of pasta is produced in Italy.
Indeed, U.S. pasta production is falling dramatically, with A decrease of 3% recorded in 2021. The U.S. market indeed had a negative balance: while exports were worth $710 million in 2021, imports topped $940 million.
And so here is how the Italian operators fit in: The average American consumer is increasingly concerned about the quality and safety of the food they put on their table.. The characteristics that Italian food products, along with their unique taste and iconic status, are able to offer. And in the last three years, Italian exports of raw materials, finished products (considering both pasta and derived products), and sector technologies have experienced a real economic boom, reaching To touch the figure of $682 million (it was 488 million in 2018 alone).
And looking to the future, according to analysts, US will remain the favorite market for Italian pasta in the coming years, which will continue to be the primary supplier for raw materials, machinery and technologies, and finished products, with%3.7% growth over the next 5 years.
If you've read this far, you've surely understood the extraordinary business opportunities available to players in the food industry, and particularly the pasta sector, in the United States. Now, however, let's study together What is needed and how to export pasta to the U.S..
First, as with all other food products, registration at the Food and Drug Administration (FDA). In detail, this is a regulatory requirement that all manufacturers with an operational and/or legal base abroad are required to comply with, as part of the “Public Health and Safety” law. Registration in this registry is crucial, as Without FDA authorization, companies are blacklisted, leading to a ban on exporting all of the company's products to the USA.
Once the request is made and all the bureaucratic procedures are initiated (caution must be exercised as products intended for commercialization may fall into specific categories requiring further qualifications), a registration number will be assigned to the identified production facility. If you own multiple facilities, then different registration numbers will need to be obtained for each facility. Finally, For each of them, it will be necessary to indicate an FDA agent who represents these manufacturing facilities..
Once you get FDA approval, the next step to bring pasta to market in the United States is put the correct label on the pasta packaging.
According to US regulations, the label for packaged foods (meaning not just pasta, but also canned goods, snacks, bread, cereals, frozen foods, etc.) must contain a description of the product, the net weight, the ingredients that were used, the name and address of the manufacturer, and the name of the importer.
In addition, the FDA requires that the information on nutritional values (or Nutrition Labels) be contained in a black framed box or the other color printed on a white background and establishes the precise dimensions that the detail will have in relation to the total surface of the packaging containing the food product.
Finally, to market a processed food product in the U.S. market, all companies that register with the FDA will have to Also adopt a food safety management system.
Preventive Controls for Human Food requires that’company adopts a system of preventive control procedures, based on risk analysis, H.A.R.P.C. – Hazard Analisys and Risk Based Preventive Controls.. To manage these procedures, the company will need to form a Preventive Controls Qualified Individual (PCQI) through a 3-day course taught by an FSPCA-qualified Lead Instructor (Food Safety Preventive Controls Alliance). Each certificate will correspond to a PCQI identification code. This role can also be a qualified external consultant designated by the company, the so-called ’FDA Agent.“.
What are the prospects, then?
Based on the data presented, U.S. consumers will increasingly use Italian pasta. The road is certainly not easy, with regulatory hurdles and delicate bureaucratic steps, but with the support of a qualified consulting firm, these initial problems can be easily overcome, given the significant profits achievable in the U.S. market.
Today, the United States no longer represents just an option in Italian companies' expansion strategies, but a nearly unavoidable path for the continuity of profits it can offer
Internationalizing in the USA can be the winning choice To overcome the competition, boost the future and gain new profits: exploiting these opportunities allows you to To consolidate its growth path - both in terms of revenue and at the level of brand awareness.
Are you interested in exploring business prospects in the United States? Octagona can help you.
With a direct presence in the U.S. market, thanks to offices in New York, Los Angeles and Miami, we can help you internationalize your company. Contact us and tell us about your export project; we will study together the best solution for your company.
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