The food processing industry is expected to be a booming business in 2016. Growth in recent years has been strongest in the production of frozen foods, pasta, and roasted coffee. But like the Italian retail sector, the food processing industry is highly fragmented, and, in recent years, has been characterized by a growing consolidation of the smaller companies and an increase in the number of joint ventures. The ten Italian leading food processing companies account for approximately 40% of the sector’s sales, excluding exports. Italy depends heavily on imports of canned food, most of which come from other EU countries and the U.S.
As the Italian lifestyle has become busier, already prepared meals are on the rise. Chilled, ready meals have been more successful than dried or frozen products as they are perceived to be fresher and more natural. Major Italian food companies in this sector include Gruppo Cremonini, Amadori, and Unipeg, which are active in the country’s processed meat and poultry sectors.
Diverging trends affected the processed fruits and vegetables sectors in 2015. On one hand, shelf stable fruits and vegetables have declined in popularity as these products are perceived to be less fresh and many consumers have shifted to fresh or frozen vegetables. Manufacturers are trying to change this trend by introducing products with a focus on provenance and naturalness. The leading player in processed, frozen fruits and vegetables is CIA, Cia Surgelati Italiana, with 15% of the market share. Nestlé ranks second with a 6% market share through its brands Buitoni and La Valle degli Orti, followed by Orogel Surgelati with value shares of 5%.
Frozen processed vegetables, on the other hand, have enjoyed increased popularity as they offer both convenience and freshness and also make it easier to cut down on food waste. Within the processed frozen fruits and vegetables category, aside from Orogel, the top players are international. As Italian consumers tend to appreciate food products that carry an Italian label, the international companies have incorporated that focus in their marketing efforts. For example, in the case of Nestlé Italiana, the company has focused its brand strategy on its Buitoni and La Valle degli Orti brands, the first being one of the oldest Italian brands and the second promoting traditional values.
