Europe’s Food and Beverage Industries

All through its history, Europe’s identity as a continent has been shaped by the interdependencies of the European states. This is still true today, and is mainly influenced by the European Union (EU). In Europe’s food-and-beverage marketplace, harmonizing efforts by the EU have made way for easier access. However, the cultural and political differences between the European states and their citizens have to be considered when doing business in Europe.

First, the facts
In total, Europe has a population of close to 730 million people, which accounts for almost 12% of the world's population. Approximately 460 Million (over 60%) live in the 27 states of the European Union (EU). The nonmember states include Russia, Ukraine, Belarus, Norway, Switzerland, Iceland, Albania and some Balkan nations. The EU has the world's largest economy, even slightly larger than that of the United States. The GDP per EU citizen is approx. $28,100, while the value in the United States is approximately $40,000. Differences in GDPs between the EU member countries exist, especially where the Eastern European nations still show relatively lower values, yet are ‘emerging markets.’ However, when compared to Western EU States, the annual GDP growth is higher for many of the Eastern EU nations.

An aging population
Although Europe’s population is larger than that of the United States, birth rates are declining in almost all countries of Europe.

The consequences of declining birth rates is a dramatic shift toward an older, geriatric population. The background fact is that women in the EU are, on average, bearing just 1.5 children. The number of births necessary to maintain an existing population size is 2.1 children per couple.

In the food and beverage market, the age distribution shift is reflected in recent product development targeting the aging population, including a host of nutritional and fortified products that address issues of:

• Osteoporosis (calcium);

• Support of tendons (magnesium), vitality (vitamins);

• Digestion (multi-grain foods);

• Gut health (probiotic dairy products).

Organically certified fruits and vegetables, and prepared foods made with organic ingredients are also strong in the food and beverage marketplace.

Muslim demographics in Western Europe
During the past 50 years, the Muslim population has exploded in Western Europe, from less than 250,000 to approximately 25 to 30 million. For many, the food they eat must be halal certified, meaning the food is prepared under the dietary laws of their religious faith. Therefore, halal-labeled products have seen tremendous growth in the states of Western Europe. Especially when it comes to prepackaged or processed foods, questions arise, such as how can the Muslim consumers be sure the spaghetti sauce they buy at the supermarket does not contain traces of wine, or how can they be sure the candies they give their children are not produced with gelatin made from pork? According to MSNBC TV, some restaurants in Tuscany, Italy, have been supplied since 2006 with steaks of the famous Florentine quality by butchers who are halal certified. The national origins of the Western European Muslim communities vary from historical reasons for their immigration. The major ethnic backgrounds in the various countries of Western Europe are as follows:

• BeNeLux: Moroccan, Turkish or Indonesian

• France: mostly Algerian

• Germany: mostly Turkish

• Spain: mostly Moroccan

• UK: Pakistani, Bangladeshi or Indian