The positive effect maintained by the Food and Beverage sector on critical growth indicators, as well as important findings that clarify the role of the sector in standardized (processed) foods in relation to more general inflationary pressures, especially in the last four years, were highlighted by two studies prepared by the Foundation for Economic and Industrial Research (IOBE) on behalf of the Association of Greek Food Industries.

One study focuses on the positive impact of the Food and Beverage Industry on the Greek Economy, maintaining 163,000 direct jobs, while the other study concerns Food Inflation in Greece, which shows that domestic food production has systematically maintained a milder rate of upward fluctuation of prices from 2020 to today, compared to imported food.

Both studies analyze official statistics from ELSTAT and EUROSTAT, from the processing of which important conclusions emerge:

According to the IOBE study on the impact of the Food and Beverage Industry on the country’s economy, the Greek Food and Beverage Industry emerges as an important sector for Greek manufacturing and the wider economy and occupies the first place in terms of production value in the country’s Manufacturing Industry with 24.4% of the total.

Containment of Food Inflation by the Food and Beverage Industry

In the IOBE study on Food Inflation in Greece, the data on the evolution of food inflation was also analyzed.

Specifically, from the latest available data from ELSTAT and EUROSTAT processed by IOBE (up to May 2024), it appears that:

– Standardized food inflation excluding olive oil in May 2024 was -0.8%, indicating that it has entered a phase of gradual deceleration from early 2024 onwards.

– Excluding olive oil, standard food prices on average have remained essentially unchanged since March 2023.

– Examining the Import Price and Producer Price Indices for the food sector in combination, it is found that since 2020 the prices of food produced (by Industry) in the country increased at a lower rate compared to imported food, indicating that domestic production absorbed the increases costs, more smoothly for the consumer.

The largest employer and investor in Research & Development

– At the same time, the Food and Beverage Industry is the largest employer in the domestic manufacturing sector, employing 40% of workers in this sector, of which almost 4 out of 10 are University graduates, demonstrating the Industry’s ability to create quality jobs work.

– At the same time, the Greek Food and Beverage Industry is one of the biggest investors in Research and Development, with the industries’ annual investment representing 10.9% of the total expenditure of domestic Manufacturing on Research and Development, a top performance in Europe. In addition, the sector’s performance in Innovation is highlighted, with Greek food and beverage processing being in 4th place at the European level, together with countries such as Denmark, Estonia and Finland.

Key driver of export growth

– In terms of exports, the Greek Food and Beverage Industry recorded an increase of 12.6% in 2023 compared to 2022, exceeding 6.8 billion euros, which highlights the quality and diversification of domestic processed foods and beverages, but also the dynamics of the domestic food industry.

The President of the Association of Greek Food Industries, Ioannis Iotis, said in this regard:

“Recent studies confirm that the Greek Food and Beverage Industry has been and remains an important pillar for Greek manufacturing and a high-yield investment for the country. It is also confirmed by evidence that Greek manufacturing companies have succeeded – with great effort – in containing the inflation of food and beverages to the extent they can. And that’s because at the end of the day the Industry doesn’t want opportunistic price increases, but wants the products to be affordable for the consumer to enjoy.”

Also, the General Director of IOBE, Professor Nikos Vettas, stated that “the role of the Food and Beverage Industry is of high importance in the general need to develop critical branches of processing. Especially with new investments and strengthening of production capacity and innovation, the sector it can contribute on the one hand to the increase of product exports and on the other to the achievement of low food prices in the country. These two dimensions are of key importance for the Greek economy in the coming years.”