Filipino exporters should not be daunted but should look seriously at tapping into the tremendous potential of the European Union (EU) agri-food trade because the diversity of this singular bloc creates opportunities for those determined to enter this affluent market, according to a trade expert.
Nelli Hajdu, EU market access expert at the International Trade Centre, made these encouraging remarks at a recent conference in Manila, where she invited local entrepreneurs to explore the export possibilities in the EU region.
“There is no such thing as a ‘one EU market’ as its diversity creates opportunities,” she said, explaining that “markets, preferences, and dynamics are heterogeneous and differ in national, regional and local context.”
She shared some notable agri-food trends in the European consumer landscape, such as that 21.4% of household expenditure is spent on food and drinks and such spending reaches about EUR1,551 billion annually.
“Population and income growth will continue to drive food demand,” Hajdu said.
She underscored the considerable unrealized export potential for the Philippines in the EU agricultural products, food and beverages sector.
Philippine products with strong potential in the EU and West Europe include fruits, vegetable oils and fats, processed or preserved food products, processed fish products, non-alcoholic beverages, paper products, and fish and shellfish.
Hajdu said Philippine companies eyeing the EU market can take their cue from emerging trends that pertain to the rise of bioeconomy; convenience and the unused potential of e-commerce; pleasure; and health and wellness.
Bioeconomy refers to the production, use and conservation of biological resources such as plants, animals and microorganisms to create sustainable products, services and solutions across sectors, said Hajdu.
Convenience and e-commerce also show promise because online grocery and meal delivery are expected to outpace offline growth in Europe.
Moreover, Europeans are increasingly focusing on pleasure and indulgence, which have become important factors in their food choices. They are reportedly looking for mood boosters and food products that promote enjoyment and sensory experiences.
Hadju bared that hot drinks are the leading indulgent category for launches in Europe, followed by bakery, confectionery, alcoholic beverages, and desserts and ice cream.
“European consumer trends research indicates that when looking for indulgent tastes, they most often choose sweet products,” she continued.
In terms of health and wellness, gaining popularity are function-focused hydration products and beverages, including those containing “clean caffeine,” as well as sleep-promoting drinks and gut-friendly prebiotics andprobiotics.
Other emerging agri-food trends have to do with growing consumer concern over animal and livestock production and how this is tied to decarbonization, animal welfare, and the impact on human health and climate.
EU consumers are also looking for food and drinks that require less water to grow or produce, as well as meat alternatives and plant-based proteins and the sustainability features of products.
Hajdu encouraged Filipino firms to study closely the European single market to strengthen their odds of entering it. The many benefits the market gives suppliers include access to large markets, unified standards, a predictable trade environment, premium market opportunities, and trade facilitation agreements.
Finally, she stressed that sustainability has become a new condition for successful market access to the EU. “Meeting the additional demand will depend on the availability of resources and capacity to boost sustainable production,” she said.
