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Market Analysis: Pandemic boosts sales of seed breeders and traders
Mathieu Geuskens published on December 27, 2021
We believe you need reliable insights to make the correct strategic decisions. That is why we analyzed the financial data of around 400 European fruit and vegetable companies. They are in four chain links: breeding, cultivation, trading, and processing. We analyzed for 2016-2019, while including an indication for 2020, and mapped out the most important developments within the sector. Read some of the noteworthy conclusions in our blog and download the trendreport for the full analysis.
Seed breeders and traders outperform in 2020
Based on preliminary market data, the growth in the European fruit and vegetable industry continues in 2020 (+5.7%), in line with the development in previous years. However, strong differences are visible between the value chain links: suppliers (seed breeders) and traders are benefiting from the COVID-19 pandemic, while growers and processors are suffering from it.
The growth of suppliers can largely be explained by hoarding behavior. Just as consumers hoarded products like toilet paper and painkillers, the pandemic has scared the industry of seed shortages, prompting them to buy large amounts and store them for later use.
Traders, on the other hand, make use of their flexibility, managing to adapt well to the developments in the market. Furthermore, traders seem to profit most from tapping into the growth categories exotics and soft fruits, as these are typical import-export segments.
Download our Trendreport of the European Fruit & Vegetable Industry for free via the button below. The trendreport delves further into:
Whether it is more profitable to focus on wholesale or on retail?
- Which part of the sector demonstrates most growth: fresh, frozen or preserved?
- Why processors should watch their returns closely?