Spain, Italy, Ireland best markets for new entrants: report

Most Western European food and drink sectors are highly concentrated, making it difficult for new entrants to come in and quickly capture market share according to a new report from Business Monitor. On this factor, the report identifies Spain, Italy and Ireland as the most promising markets, as they are less developed and have room for growth in certain sub-sectors. However, the report says, this relative immaturity has to be balanced against the third factor, per capita food consumption. Fiscal tightening and weak economic growth is expected to put downwards pressure on consumption over the next five years across all markets in the region. However, it is those markets facing greater pressure such as Greece, Spain and Italy that score poorly on this factor, with the UK a clear leader. The report details how Western European markets continue to grapple with the continuing fallout of the eurozone crisis, as austerity measures continue to challenge growth. Stubborn unemployment levels and accompanying weakened consumer confidence remain serious obstacles. The UK leads the pack on Business Monitor’s Risk/Reward Ratings table, with Germany, France and the Netherlands close behind, and Spain, Ireland and Italy forming another cluster beneath.