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Europe has always been ?where
it?s at? when it comes to exporting. Ireland, France,
the US and Spain have, for many years, been top of the
export pops thanks to their kindred taste buds, economic
stability, geographical proximity and recognition of UK
leadership in food innovation.
Germany, the Netherlands, Italy and Belgium have, for
some time, made up the remainder of the top eight most
popular European destination markets for UK food and
drink manufacturers. And if our latest research is
anything to go by, success in these markets isn?t going
to fall by the wayside any time soon. But ?soon? is the
operative word in this case. While these countries
currently offer UK manufacturers that all-important
comfort zone in these tough economic times, the future
isn?t looking all that bright for their economies,
either.
With July?s German trade data sparking fears of a
recession and doom and gloom sentiment elsewhere in
Europe, relying solely on these markets is not wise. The
Eurozone may well be the easy option for the time being,
but it is unlikely to provide a route to long-term
success. UK food and drink exporters must look further
afield.
Longer-term, economic growth in emerging
markets such as Eastern Europe, south east Asia, India
and the Gulf States will change the face of the world.
While the IMF has recently cut its GDP growth forecasts
for Russia, the country will still see economic gains of
6%-7% a year to 2010. Compare that with 1%-1.5% GDP
growth in the Eurozone as a whole. Emerging markets
really do offer the brightest future. As global economic
powers continue to shift inexorably, avoiding the
emerging markets now means risking losing them in the
future.
With India?s retail market forecast to grow 20%-30% per
year for the next five years, it is essential to get
involved and harness the power of this growth, either
through export, joint venture or some other such
arrangement. Ignoring these markets in favour of the
safe markets of Europe simply means these economic
powerhouses will bring the fight to you. And they will
win.
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