Nicolas Ranninger, Milan Office, Bord Bia – Irish Food Board
Food culture is deeply embedded in the Italian population and the country enjoys a 
vibrant and dynamic food manufacturing sector that accounts for 13% of the GDP and generates in the region of €38 bn of exports, nevertheless Italy is highly reliant on food imports such as meat, dairy and seafood products which generated Irish food and beverage exports valued at € 311 million in 2014.
Unlike other European nations, the Italian food retail and distribution sector continues to resist consolidation. Small, traditional grocery stores (so-called Mom and Pop stores) continue to represent the largest segment of the food retail sector, followed by open-air markets. Nonetheless, consolidation is slowly gaining momentum, as a few Italian and foreign operators are starting to expand their network of stores. Larger food retailers are starting to appeal to those consumers who are attracted by the convenience that one-stop shopping offers, and appreciate the wide range of products and additional services that larger retail formats provide.
Most of the supermarkets, hypermarkets, and large shopping malls are mainly located in the North of Italy, while the south continues to lag behind with fewer retail outlets and a still underdeveloped distribution network.
Due to the effects of the recent economic recession, many of Italy’s leading grocery retailers have been forced to rethink their distribution strategies, faced with reduced consumer spending power as well as increases in fixed costs and higher levels of taxation on commercial space. In light of this, the size of these grocery retailers outlets has declined substantially as retailers are shifting away from hypermarkets towards supermarkets and convenience stores as consumers are increasingly keen on purchasing their groceries in smaller quantities but more often.
As a result of the financial crisis, the Italian retail and food service sector is looking for ways to compete more effectively, gain market share or improve margins. Irish companies focusing on innovation and/or providing niche products are likely to find gaps in the market that may not have been initially apparent.
Language, culture and logistics can prove challenging for exporters.. In order to facilitate market entry Bord Bia has compiled a report intended for Irish consumer food and beverage exporters who wish to understand the opportunities and constraints within the Italian market and identify the appropriate agent or distributor, who will develop and secure their business within the market.
The Food and Beverage Agent & Importer Guide-Italy is available upon request.
For more information please contact Nicolas.ranninger@bordbia.ie