AGRIFOOD

Falling behind other sectors more resilient to external shocks

M

Medium RISK for entreprises

  • Fragmentation

  • Internationalization

  • Capital Intensity

  • Profitability

  • Favorable outlook in the long run, fueled by global population growth
  • Demand boost, given the rise of a new middle class, especially in Asia
  • Financial structure of beverage companies sound enough on a global average
  • Resilience to periods of downturns in mature economies
  • Market maturity in advanced economies leads to strong price competition
  • Farming sector suffering from low crop prices
  • Strong dependence of food processing companies on their major outlet that is (food) retail
  • Limited pricing power of food makers against retailing outlets
  • Investments to be made in the upstream to reduce GHG emissions

Key players

Country Role Sector risk
China

#1 market by revenue

B

Medium risk

United States

#2 market by revenue

C

Sensitive risk

Germany

#3 Market by revenue

B

Medium risk

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Sector Risk Analyst

Marc LIVINEC

marc.livinec@eulerhermes.com

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