Turkey’s food industry has registered a steady growth in recent years, with the Turkish consumers becoming increasingly demanding, driven by the multitude of choices offered by mass grocery retail outlets. Rising disposable income and changing consumption patterns, along with the increase in the number of women in full-time employment, have all led to an increase in interest as regards packaged and processed food, such as ready-to-eat meals and frozen food.
As the sector is getting more sophisticated, Turkey is becoming one of the largest markets for baked goods with its bread - an important element of the Turkish diet - leading to some of the highest rates of per-capita consumption in the world. On the other hand, sub-sector dairy products including milk, yoghurt, cheese, kefir and ayran (a drink made of yoghurt and water) form an integral part of the traditional Turkish diet. Traditionally, artesian, unpackaged products have dominated the Turkish dairy market, holding back widespread growth but also serving a potential to the investors.
In addition to its large domestic market, Turkey is the number one food and beverage exporter in its region and historically holding a very strong and leading position.
The Turkish beverage sector is one of the leading industries in Turkey, constituting an important portion of the country’s GDP. The strengths of the industry include the size of the market in relation to the country’s young population, dynamic private sector economy, substantial tourism income and favorable climate. The market for soft drinks in Turkey increased drastically between 2001 and 2008, growing at an annual average rate of 5.2 percent. Per capita consumption of beverages in the country is around 300 liters, which points out to a big potency of growth. There are more than 40 soft drink brands from 35 producers in the country and 596.3 million liters of production was registered in 2007.
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Alcoholic drink sales in Turkey are foreseen to grow 17.8 percent until 2013. The growing number of young Turkish consumers, rising income and high touristic potential of the country, are expected to contribute immensely to the growth of the alcoholic drinks industry.
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- With its young and growing population, food and beverage consumption and production are both increasing in Turkey.
- The Turkish food industry has important export opportunities due to the diverse agricultural products available in the country.
- Being a developing country, the GDP per capita is expected to increase in coming years, which will also have the effect of increasing consumer spending.
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- The economically volatile environment affected by the global economic crisis may hinder consumer spending.
- Low level of alcoholic drinks when compared with the European countries due to Islamic traditions and the high Special Consumption Tax on alcoholic drinks.
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- An interested young population is open to trying new brands and products.
- Growth in the tourism sector also benefits consumption in the food and beverage industry.
- Since the market is still not mature, there are many opportunities for new products to enter Turkey.
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- The unstable regulatory environment in agriculture also affects the food industry.
- High energy and raw material costs have a negative effect on food and beverage manufacturers’ performance.
- Competition in the wine industry due to new wine producers producing high-quality and low-priced wines on a global scale.
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