High farming prices and labor shortages hurt food-makers’ profitability
M
Medium RISK for entreprises
-
Fragmentation
-
Internationalization
-
Capital Intensity
-
Profitability
-
Fragmentation
-
Internationalization
-
Capital Intensity
-
Profitability

- Farming upstream segment enjoys high selling prices
- Strategic sector usually supported by state aid in any case of social uprising risk
- Agrifood demand fueled by Asia’s new middle class and larger disposable incomes
- Resilience to periods of supply-chain disruptions as the global vaccination campaign expands
- Rising demand in the market niche of organic food and responsible farming principles

- Fierce price competition among food-makers in mass retailing
- Environmental concerns related to the heavy use of pesticides and water, on top of the necessity to reduce upstream greenhouse gas emissions.
- Labor shortages in the beverage segment, especially across Western Europe.
- Food processing companies’ limited pricing power against wholesalers and retailers.
- Food safety related to changing food supply/demand dynamics locally and globally.
Key players
Country | Role | Sector risk |
---|---|---|
![]() |
#1 market by revenue |
B
Medium risk |
![]() |
#2 market by revenue |
C
Sensitive risk |
![]() |
#3 Market by revenue |
B
Medium risk |