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Exporting agribusiness, new opportunities for Italy

Exporting agribusiness, new opportunities for Italy

In summary
  • In 2023, Italian agro-food exports exceeded 62 billion euros, with growth of 6%, driven by the European Union and the Central and South American regions (+9% each).
  • 200 Italian companies participated in Gulfood 2024; in November 2023, agro-food exports to the United Arab Emirates exceeded 412 million euros (+8.4%).
  • At Cibus 2024, three key themes emerged: the value of DOP and IGP, artificial intelligence versus Italian Sounding, and sustainable packaging.
  • The American market is worth $1.5 trillion in retail and alcohol sales, about ten times that of Europe, with incentives such as the Inflation Reduction Act and SelectUSA.
  • In addition to Germany and France, India, Vietnam (+10.2% annually forecast until 2028) and South Korea (+8.4% annually forecast until 2028) are also growing.
Index

Exporting agribusiness is proving to be an increasingly attractive opportunity for Italian companies. Figures for 2023 reveal that Italian agrifood exports have reached a new record, surpassing 62 billion euros. This milestone represents one of the best performances among the world's leading exporters, with a 6% increase. Only Germany experienced slightly higher growth, up 6.2%, while France, China and the United States ended the year with negative results.

Italian export growth was mainly driven by European Union markets (+9%), with significant contributions also coming from Central and South America (+9%).

Several industry trade shows have been held recently that have confirmed this positive trend. What new opportunities have emerged from these events?

export agribusiness

Exporting agribusiness, what is the scenario represented by the latest industry fairs?

Italian agrifood exports continue to grow, driven by several key factors. 

The prestige of the Made in Italy undoubtedly plays a key role, attracting global consumers through its reputation for high quality and authenticity. In addition, the increasing use of organic products responds to the growing demand for healthy and sustainable food, further strengthening Italy's position in international markets. 

And this is well demonstrated by two of the most relevant international trade fairs for this market. 

Gulfood 2024: Italy's presence strengthens in the Middle East

Excellent news for Italian agrifood exports to the Middle East comes from the Italian Pavilion, which opened in Gulfood 2024, the leading exhibition of the F&B industry in the United Arab Emirates and throughout the region. Gulfood has become a strategic event for Italian companies, with as many as 200 domestic companies participating.

During the event, the latest data on Made in Italy food and beverage exports to the Emirates were released, highlighting the great potential of the sector in this country. As of November 2023, Italy has exported agri-food products worth more than 412 million euros, registering a growth of 8.4%, higher than that of Made in Italy as a whole.

Special mention should be made of the program “Italian Food Lab“. This project aims to educate the local and international market about the organoleptic and health peculiarities of Italian products, countering the phenomenon of Italian Sounding.

The Italian Food Lab will also provide an opportunity to support the candidacy of Italian Cuisine as a UNESCO Intangible Heritage of Humanity, recognizing the value and uniqueness of the country's culinary tradition, and reinforcing its position as a world leader in the agri-food sector. 

Exporting agribusiness, the scenario presented during Cibus 2024

During Cibus 2024, the flagship exhibition for the agribusiness sector held at Fiere di Parma from May 7 to 10, significant data were presented showing that between 2013 and 2023, the industry went through a decade of remarkable development. The growth of the italian exports in the sector touched a total value of $64 billion, accounting for about 10% of European exports.

One of the main themes of this edition was the importance of PDO and PGI products as quality indicators that incentivize consumption. PDO and PGI labeling on packages not only increases the general propensity to buy, but also prompts buyers to prefer higher-priced products.

One innovation that emerged during the event was the use of artificial intelligence to combat food counterfeiting. For example, the Nina project, promoted by the Consortium of Mozzarella di Bufala Campana DOP, aims to protect this Italian food excellence from imitations and to combat the phenomenon of Italian sounding.

Sustainability was another key theme of the fair. Sustainable packaging was identified as crucial, with two out of three Italians seeing it as decisive in their purchasing choices and one in two seeing it as crucial in making a product more environmentally friendly.

Antonio Cellie, CEO of Fiere di Parma, reiterated this concept also referring to foreign countries, saying that “trends such as organic, driven by Generation Z and millennials, continue to grow overseas.” 

This is an important element to consider for companies that want to export agribusiness And stand out from competitors.

Particular attention was paid to the American market, valued at $1.5 trillion considering retail and alcohol, thus turning out to be ten times larger than that of Europe. 

During the conference USA4 Cibus, carried out in collaboration with the American Chamber of Commerce in Italy, opportunities for Italian companies to invest in the United States, especially in the era of the Inflation Reduction Act, were discussed. This program offers substantial tax credits for clean energy-related projects, also involving the agribusiness sector. In addition, the program SelectUSA will further facilitate investment in the country by foreign companies.

Caroline Chung, Principal Commercial Officer of the U.S. Consulate General in Milan, pointed out that. “no other food influences culture in America and around the world like Italian food. The Italian food industry is globally successful because of the quality of its products and the fame it has earned.”

export agribusiness

Export of Made in Italy food, which countries are most affected?

What are the most promising target countries for companies involved in export agribusiness, beyond the United States?

Germany

The Germany, historically Italy's main trading partner in various sectors, is also confirmed as the preferred destination for agrifood exports. In 2023, sales to Germany exceeded 10 billion euros, registering a growth of 7.3% over the past five years. The biggest demands come from the beverage, pasta and bakery sectors.

France

The France is another major market, accounting for 11% of total Italian agri-food exports and registering 8.7% growth over the past five years. French consumers mainly demand pasta, baked goods, milk and dairy products.

In addition to European markets, new opportunities are emerging in countries with growing economies.

India

L’India, which sees Italian export growth of 9.3%, is the world's second largest producer of fruits and vegetables. It offers considerable opportunities in the sectors of agricultural machinery and agrifood preservation and processing processes. In fact, about 40% of Indian agricultural production perishes before it reaches consumers due to inefficiencies in preservation technologies. This creates room for innovation and efficiency in Italian technologies.

Vietnam

The Vietnam forecasts a growth in agri-food imports from Italy of 10.2% annually until 2028, offering significant new export opportunities for Italian companies interested in expanding their presence in this particularly dynamic market.

South Korea

Also the South Korea shows promising growth prospects, with a projected increase of 8.4% annually until 2028, thus presenting further expansion opportunities for Italian companies in the agribusiness sector.

Octagona offers internationalization strategies for Italian companies, also supporting them in the agribusiness export process. Our professionals help companies identify the most promising markets, adapt products to local regulations, and develop effective trade networks. Contact us for more information.

Frequently Asked Questions

What is the value of Italian agro-food exports in 2023 and how much has it grown compared to other exporters?

In 2023, Italian agro-food exports exceeded 62 billion euros, marking a new record increase of 6%. Among the world’s leading exporters, only Germany performed slightly better, with +6.2%, while France, China and the United States closed the year negatively. The growth was supported by the European Union and the Central and South American region, both at +9%.

What opportunities for Italian agro-food exports have emerged at Gulfood 2024 in the United Arab Emirates?

Gulfood 2024, the main F&B fair of the UAE and the region, saw the participation of 200 Italian companies in the Italian Pavilion. In November 2023, Italian agri-food exports to the UAE exceeded 412 million euros, with an 8.4% growth. The Italian Food Lab program counteracts the Italian Sounding and supports the UNESCO candidacy of Italian Cuisine.

Why are DOP and IGP certifications important for selling Italian food products abroad?

PDO and IGP labels are quality indicators that encourage consumption: according to the data presented at Cibus 2024, they increase overall purchasing propensity and encourage consumers to choose products priced higher. For those exporting agri-food products, this means being able to better position their products and stand out from imitations and Italian Sounding.

How can artificial intelligence be used to combat Italian Sounding and food counterfeiting?

Artificial intelligence can protect agricultural and food excellences from imitation. An example presented at Cibus 2024 is the Nina project, promoted by the Consortium of Bufala Campana DOP Mozzarella, which aims to protect the product from counterfeiting and combat the phenomenon of Italian sounding in international markets.

Why is the US market interesting for those who want to export agri-food products from Italy?

The US market is valued at $1.5 trillion, including retail and alcohol sales; this is about ten times that of Europe. At the USA4 Cibus conference, investment in the United States was discussed, facilitated by the Inflation Reduction Act, which offers tax credits for clean energy projects, and the SelectUSA program, which facilitates foreign companies’ investment.

Which are the most promising countries for exporting Italian agri-food products beyond the United States?

Germany remains the top destination, with over 10 billion euros in 2023, followed by France, which accounts for 11% of Italian agri-food exports. Among emerging markets, India marks +9.3% and offers space for machinery and preservation technologies, while Vietnam (+10.2% annually) and South Korea (+8.4% annually) grow until 2028.

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