Exporting to the United States: the most successful Made in Italy products

Exporting to the United States is proving to be an increasingly attractive opportunity for many companies in our country. 

Just look at the trend that has characterized Italian exports to the US in recent years. From 2013 to 2022 the exports of goods and services have recorded a growth of 66%.

The main strengths of this nation, which propel it to be one of the largest destination markets for our exports, are as follows:

• Market size: The U.S. is the third largest and fourth most populated country in the world and the world's leading economy, with a GDP of $25,462,700 billion in 2022;
• Purchasing power: With $73,398 per capita income per year, the United States manages to provide a secure outlet market for Italian products;
• Competitiveness: The United States finds innovation and financial market efficiency to be its main strengths.

Selling in the United States, the most successful commodity sectors for Italian exports.

According to the Istat data, Italy is the second European country as the volume of exports to the United States, ranking only behind Germany. 

Le product categories Most exported to the US are:

• Machinery and equipment n.e.c, Which constitute nearly 19% of Italian exports to the U.S.
• Means of transportation that cover the share of 17.2%
• Pharmaceutical, chemical-medicinal and botanical items representing the 12,3%
• Food, beverages and tobacco products (9,8%)
• Textiles, clothing, leather and accessories constituting the 8.3%

Exporting to the U.S. has become, therefore, a winning opportunity mainly due to a fruitful exchange in terms of supply and demand, fostered by the strengthening of ties between the two countries. The reasons for this success are motivated by the quality expressed by the Made in Italy brand. It is not at all surprising that the demand for food products from Italy is increasing, as well as that of the’clothing. 

As for the sectors most attractive in which to invest in the United States, it is worth mentioning:

• Electricity, gas, steam and air conditioning (including from renewable sources), as it is one of the most advanced sectors in the world. In addition, the U.S. is a leader in energy production and supply;
• Motor vehicles, trailers and semi-trailers, as the country is investing in new technologies to meet the fuel efficiency targets set for this century. From this comes many opportunities for companies, as the demand for new technologies for materials and production machinery grows;
• Other means of transportation (ships and boats, locomotives and rolling stock, aircraft and spacecraft, and military vehicles), sectors for which growth is expected in the coming years;
• Machinery and equipment, as the COVID-19 pandemic has undermined the supply chains of U.S. companies. The challenge they now face is to make them more resilient without weakening their competitiveness.

Exporting food to the US, what you need to know

Agrifood products are increasingly in demand on the U.S. market. This is confirmed by the fact that in the first quarter of 2023, exports of this sector reached 3.2 billion euros. We are talking in particular about cheese, oil, wine, but also chocolate and pasta of durum wheat. 

The U.S. market therefore shows a marked appreciation for Made in Italy foods, despite the presence of legislation that can be complex to deal with, especially after the adoption of the Food Safety Modernization Act (FSMA). This law, which has regulated food safety in the country since 2016, provides for greater oversight by the Food and Drug Administration (FDA), which is the agency that regulates every aspect of food safety.

Any Italian company wishing to export food to the US is therefore required to prepare:

• the HARPC plan (Hazard Analysis and Risk Based Preventive Controls) to analyze all kinds of risks related to product production;
• the above plan is intended to supplement the HACCP plan (Hazard Analysis and Critical Control Points), already known to Italian companies since it is mandatory in the European Union.

Not all food products are subject to these requirements: excluding meats, milk and dairy products, and alcoholic beverages above 7 degrees. These categories are regulated by another jurisdiction. 

In addition to the HARPC plan, the company that wants to sell food in the U.S. will also have to prepare the Food Safety Plan (FSP), which should contain all documentation pertaining to the preventive controls under the HARPC plan.

They then remain mandatory the three steps main things to be accomplished, predating the legislation introduced in 2016:

• Registration with the FDA (Food Facility Registration), mandatory for all establishments that produce, process, package food for consumption in the U.S;
• The appointment of the FDA Agent (or US Agent), which is that figure residing in the United States who must be appointed by the company To connect FDA and plant in case of urgent communication;
• Sending Prior Notice (“advance notification”) whenever a shipment is made to the United States. 

Exporting to the U.S., the forecast for the future

Therefore, trade exchange between Italy and the United States is expected to grow in the coming years. According to the Export 2023 Report, it will be particularly the investments in sustainable transition to bring a Increase in profits by 4.6% during 2024.

However, opportunities will grow for all those companies wishing to expand their business in the US. Nevertheless, it will be necessary to know how to deal with this thriving market after devising a truly effective strategy in order to successfully embark on a path of internationalization. 

A sound strategy will include analysis of the U.S. market, the’competitor analysis, identifying fairs and outlining a proper plan of action supported by expert figures such as the temporary export manager.

There are many factors to consider in order to start selling in the United States profitably, and in order to avoid loss of budget and time, it is recommended to receive support from professionals who are familiar with this market due to extensive experience in the field.

Octagona, present with two locations in the country (New York and Orlando), can give your business activity a decisive help in this regard, Supporting it through the intervention of experts in internationalization. To get more information, do not hesitate to contact us.