Food & Beverages
Food Sector in Turkey
The Turkish food industry has been growing steadily in recent years. As incomes have risen, Turkish consumers have become increasingly demanding. The multitude of choices offered by mass grocery retail outlets along with rising disposable income and changing consumption patterns, and more women in the workforce, have all led to increased interest in packaged and processed food, such as ready-to-eat meals and frozen food.
As the sector becomes more sophisticated, Turkey’s market for baked goods has increased—particularly for bread, a staple of the Turkish diet—leading to some of the highest rates of per capita consumption in the world. Meanwhile an integral part of the traditional Turkish diet is represented by the industry sub-sector of dairy products, which includes milk, yoghurt, cheese, kefir and ayran (a drink made of yoghurt and water) form. Traditional, artisan, unpackaged products tend to dominate the Turkish dairy market, holding back widespread growth but also posing potential opportunities to investors.
The strength of the food, beverage and tobacco industry is evinced by the fact that it holds the highest share of household consumption, with 27 percent in 2010 Further evidence of the strong position of this sector includes the size of the market in relation to the country’s young population, a dynamic private sector economy, substantial tourism income and a favorable climate.
The food and beverage industry accounted for around 6 percent of the total exports in 2010, achieving USD 6.7 billion.
One of the most attractive areas for foreign investors Turkey’s food, beverage and tobacco industry has been a magnet for a tremendous amount of foreign direct investment (FDI), attracting around USD 4 billion over the past ten years, as it offers lucrative investment opportunities to global investors.
Kesikli Law Firm provides legal & regulatory advisory services to its clients in relation to the food & beverages regulations, labeling requirements, legal restrictions and the management of their retail chains.