Developments in the US related to the election of Donald Trump and its expected effect on the US monetary policy path and international trade introduce significant uncertainty for EMEs in 2017.
While German food exports continue to increase, domestic market conditions have become increasingly difficult. Overcapacity is an issue in some segments.
Smaller food retailer and wholesalers margins remain under pressure and are expected to lose further market share, while customer behaviour is changing.
Exports are of major importance for the French food sector (especially for the beverages segment), positively contributing to the French trade balance.
Large food businesses are active globally and performing well, while smaller producers and wholesalers generally face tough competition and low margins.