Portuguese Agrofood Sector Isabel Braga da Cruz knowledge

Portuguese Agro-food Sector Isabel Braga da Cruz (knowledge Division | Portugal. Foods) Alimentaria & Horexpo Lisbon, 29 th March, 2011

Outline: • Characterisation of Agro-food sector in Portugal over an European context; • Portugal. Foods Observatory (example) – analysis of food product launches in the Portuguese market; • Conclusions

General context: Agro-Food Sector in Europe • EU Food and Drink industry (2008) * Source: CIAA

General context: Agro-food sector in Portugal • Agro-food sector is the biggest industrial sector in Portugal, as well as in Europe; • Portuguese Agro-food sector corresponds to 16% of the total transformation industry in Portugal; • Portuguese Agro-food sector is mostly composed by SME’s, highly dispersed; • It represents a turnover of 13. 500 M€ (2009); • Major food production is focused on a reduced number of enterprises. • It contributes to 7, 6% to GNP. • Total number of enterprises in food field ranges 11. 000; • Total number of employees in food field ca. 111. 000 Source: FIPA, based on INE data

General context: Agro-food sector in Portugal 13. 500 M€ Turn-over (M€) • Turnover evolution* year • Source: FIPA projections for 2008 and 2009, INE data (2003 to 2007)

General context: Agro-food sector in Portugal • Relative weight of the different sub-sectors to the turnover (2009)* • PT: Beverages, Meat, and Dairy and the major sub -sectors representing 44% of total turnover • EU: Beverages, Meat, and Dairy and the major sub -sectors representing 50% of total turnover * Source: FIPA, based on INE data

General context: Agro-food sector in Portugal • Distribution (%) of the enterprises by sub-sector • PT: Beverages, meat, oil & fats and dairy Source: FIPA, based on INE data

General context: Agro-food sector in Portugal • Employee distribution, relative weight of the different sub-sectors. Source: FIPA, based on INE data

General context: Agro-food sector in Portugal Great majority of the enterprises are of small dimension: • 80% of the enterprises has less than 9 employees, representing 9% of total turnover; • Highest contribution to turnover (21%) comes from enterprises with a number of employees (10 -49); • Only 2, 8% of the enterprises has more than 50 employees. Source: FIPA, based on INE data

General context: Agro-food sector in Portugal Import & Export • Agro-food products represent ca. 12% of the total importation in Portugal (6. 000 M€ in 2007); • Spain and Germany are the biggest players in EU; Source: FIPA, based on INE data

General context: Agro-food sector in Portugal R&D investment • Agro-food sector traditionally has a reduced investment in R&D, when comparing with other production sectors; • R&D investment in Portugal represents 1, 2% of GNP; • Despite the low investment on R&D, a high intensity and activity on innovation is evident, specially connected with differentiation of food products and processes, according to market trends and consumer demands. Source: FIPA, based on INE data

General context: Agro-Food Sector in Portugal Over the last decade Portuguese Agro-food sector has been learning how to value their uniqueness towards innovation, reacting to the new challenges of the global market and consumer demands. How? • Over important changes on production units (evolving environment concerns and sustainability issues); • By introducing Quality and Safety on their products, through HACCP and several certification processes; • By improving communication with consumer (through marketing and label information).

Observatory approach “Food products in Portugal”

Outline • Global analysis of new food products launched in Portugal (tracked by the Innovadatabase); • Five years period of analysis: 2006 – 2010; • Food products detected: 5. 111 (products found); Market Analysis: Product Launch Activity Positioning Analysis - Stand-outs & Product Trends

Product Launch activity in Portugal • Distribution analysis over the last 5 years, reveals a strong increase in food product launches beyond 2007; • Slight increase between 2007 -2010.

Product Launch activity Company (Top 10 ) % Retailer (Top 10 ) % LIDL 16, 1 CONTINENTE 23, 6 MODELO CONTINENTE HIPERMERCADOS 4, 7 LIDL 18, 4 NESTLÉ 4, 1 HYPERMARKET 12, 8 KRAFT 2, 4 JUMBO 7, 2 DANONE 2, 3 MODELO SUPERMARKET 4, 1 UNILEVER 2, 2 PINGO DOCE 3, 3 JOAQUIM MOREIRA PINTO & FILHOS 1, 6 CARREFOUR 2, 8 PINGO DOCE 1, 5 ALI SUPER 1, 5 CARREFOUR 1, 4 Hypermarket JUMBO 0, 8 BIOREGIME 1, 3 MODELO CONTINENTE HIPERMERCADOS 0, 8

Market analysis ↗ Market distribution (top 15)

Market analysis ↗ Market category (top 10)

Market analysis ↗ Positioning

Conclusions: agro-food sector in Portugal • Quality and Safety in parallel with certification, are the basis of whole agro-food scenario; • Major trends in food sector, show that consumer demands healthier products, more convenient and of easy preparation; • Nowadays is stated that food is seen a new cultural approach, leading to new experiences and learning, beyond the inherent nutrition of food, leading to high opportunities of differentiation in food market and business.

Dzięki! Isabel. bcruz@portugalfoods. org Alimentaria & Horexpo Lisbon, 29 th March, 2011