EU-Mercosur Economic Bloc to Encompass 28% of Global Packaged Food Retail Sales By 2024

The European Union (EU) Mercosur trade agreement will result in the new economic blocs packaged food industry representing 28% of global retail sales by 2024.

Metadata
Provider: 
Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Thursday, December 5, 2019
Information
Tags: 
Food, Beverage, Retail, Continents, Organizations, Trade blocs, South America, Economy of South America, Customs unions, Free trade agreements, Mercosur, European Union
Geotags: 
Europe, South America, Brazil
⚠generated by AI ↴
Summary
Key Points: 
  • The European Union (EU) Mercosur trade agreement will result in the new economic blocs packaged food industry representing 28% of global retail sales by 2024.
  • According to the white paper, the combined packaged food industry is worth $678 billion in 2019 with Mercosur representing $119 billion and the EU $559 billion.
  • By 2024, the bloc is expected to add an additional $51 billion in retail sales, Mercosur accounting for $23 billion and the EU for $28 billion.
  • When formalized, the economic bloc will account for $21 trillion of the world's global GDP, roughly 25% of the global consumer expenditure, creating a market of 776 million people.


The European Union (EU) – Mercosur trade agreement will result in the new economic bloc´s packaged food industry representing 28% of global retail sales by 2024.

Global market research company, Euromonitor International, launched a white paper, “EU-Mercosur Trade Agreement: opportunities for Latin America,” analyzing the impact of the agreement on the global economy.

According to the white paper, the combined packaged food industry is worth $678 billion in 2019 with Mercosur representing $119 billion and the EU $559 billion. By 2024, the bloc is expected to add an additional $51 billion in retail sales, Mercosur accounting for $23 billion and the EU for $28 billion. Together this represents Spain´s packaged food market plus more than half of Argentina’s.

The EU-Mercosur agreement strives to eliminate tariffs for 90% of traded products. When formalized, the economic bloc will account for $21 trillion of the world's global GDP, roughly 25% of the global consumer expenditure, creating a market of 776 million people.

“The EU is composed of large and mature markets and Mercosur of what are considered growth countries despite the recent economic slowdown in the region. Interestingly, both will contribute roughly the same actual value to consumer industries by 2024,” explains Marcel Motta, Brazil director at Euromonitor International in Sao Paulo.

The new white paper also discusses the impact of the agreement in the beauty and personal care industry and a case study about South Korea´s open economy compared to Brazil’s economic isolation.

To download a copy of “EU-Mercosur Trade Agreement: opportunities for Latin America,” please click here.

ABOUT EUROMONITOR INTERNATIONAL

Euromonitor International is the world’s leading provider for global business intelligence, market analysis and consumer insights. From local to global and tactical to strategic, our research solutions support decisions on how, where and when to grow your business. Find the right report, database or custom solution to validate priorities, redirect assumptions and uncover new opportunities. With offices around the world, analysts in over 100 countries, the latest data science techniques and market research on every key trend and driver, we help you make sense of global markets.

Copyright: 
Copyright Business Wire 2019