The Turkish Food and Beverage Sector Market Report November 2015 Authors: Simla Çınarand Raphael Pauwels Flanders Investment and Trade, Istanbul c/o Consulate General of Belgium Siraselviler Caddesi 39 34433 Taksim Istanbul Turkiye
21Intro The following report aims to guide the trade and investment strategies of Flemish companies seeking to expand into the Turkish food and beverage market. First of all we need to point out that Turkey itself is a big producer of food and beverages. The sector has an 18.9% share in GDP (2014). This has to do with the fact that the country is blessed with a suitable climate and ecological conditions for agricultural production, for a wide variety of fruits and vegetables. Turkey is the 7th largest agricultural producer in the world, and the largest one in Europe. It is the world’s largest producer of apricots, hazelnuts, figs, cherries and sour cherries, quinces. It is Europe’s largest producer of apples, green beans, beeswax, chestnuts, chick peas, green chilies and peppers, cotton lint, cottonseed, cucumbers and gherkins, eggplants, grapefruits, natural honey, leeks, lemons and limes, lentils, chicken meat, melons, whole fresh sheep milk, dry onions, green onions, pistachios, safflower seed, spices, spinach, strawberries, tea, tomatoes, vanilla, vetches, walnuts, watermelons. No wonder then that Turkey’s exports of food and beverages are much larger than its imports. In 2014 Turkey’s exportsof the food & beverage industry reached USD 11.1 billion, coming from USD 4.3 billion in 2005 and USD 6.7 billion in 2010. Its main export markets are: Iraq, Germany, Syria, The Netherlands, USA. In 2014 Turkey’s importsin the food & beverage categories stood at USD 5.6 billion, coming from USD 2.1 billion in 2005 and USD 3.4 billion in 2010. The main import markets are: Russia, Indonesia, USA, Ukraine, Germany. So both exports and imports show rapid growth. The current economic climate may not be too favourable in the short term, with Turkey’s GDP growth expected to be around 3% in 2015 and in 2016 as well, according to most financial institutions. Far below the 8 and 9% growth figures of a few years ago. But…… the fact remains that Turkey is a growing market with a large population of nearly 78 million people, a young population (50% is younger than 30), of increasing affluence, and more and more open to international flavours, to imported foods and drinks, to convenience food. A market with continuously increasing market share of the ‘organisedretail’as well. Fuelled by increasing disposable income levels and strong consumer demand, the Turkish food retail sector reached USD 121 billion in 2014. The share of food in the total retail sector is 60% and the food retail sector is expected to grow 8% annually in the 2015-2018 period.