SECTORS :: FOOD & BEVERAGE

Turkey’s food industry has registered a steady growth in recent years, with the Turkish consumers becoming increasingly demanding, driven by the multitude of choices offered by mass grocery retail outlets. Rising disposable income and changing consumption patterns, along with the increase in the number of females in full-time employment, have all led to an increase in interest as regards packaged and processed food, such as ready-to-eat meals and frozen food.

 

As the sector is getting more sophisticated, Turkey is becoming one of the largest markets for baked goods with its bread - an important element of the Turkish diet - leading to some of the highest rates of per capita consumption in the world. On the other hand, subsector dairy products including milk, yoghurt, cheese, kefir and ayran (a drink made of yoghurt and water) form an integral part of the traditional Turkish diet. Traditionally, artesian, unpackaged products have dominated the Turkish dairy market, holding back widespread growth but also posing a potential to the investors.

 

The food, beverage and tobacco industry also has the highest share in household consumption in Turkey, with 27 percent in 2010. The strengths of the industry include 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 contributes to Turkey’s exports as well, achieving USD 6.7 billion --accounting for around 6 percent of the total exports in 2010.

 

Turkey’s food, beverage and tobacco industry has been one of the most attractive areas for foreign investors. It has attracted 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.