EU-Mercosur Trade Agreement to Encompass 28% of Global Packaged Food Retail Sales by 2024
SAO PAULO, BRAZIL – The European Union (EU) – Mercosur trade agreement will result in the new economic bloc’s packaged food industry representing 28% of global retail sales by 2024.
Global market research company, Euromonitor International, launched a white paper, “EU-Mercosur Trade Agreement: Opportunities for Latin America”, analyzing the impact of the agreement on the global economy.
According to the white paper, the combined packaged food industry is worth $678 billion in 2019 with Mercosur representing $119 billion and the EU $559 billion. By 2024, the bloc is expected to add an additional $51 billion in retail sales, Mercosur will account for 23 billion and the EU $28 billion. Together this represents the size of the packaged food market in Spain plus more than half of Argentina’s.
The EU-Mercosur agreement strives to eliminate tariffs for 90% of traded products. When formalized, the economic bloc will encompass USD 21 trillion of the world’s global GDP, roughly 25% of global consumer expenditure, creating a market of 776 million people.
“The EU consists of large and mature markets while Mercosur encompasses what are considered growth countries despite of the recent economic slowdown in the region. What is interesting is that both will add roughly the same contribution in actual value to the consumer industries by 2024, explains Marcel Motta, Brazil director at Euromonitor International in Sao Paulo. The new white paper also discusses the impact of the agreement in the beauty and personal care industry and a case study about South Korea´s economic opening compared to Brazil’s economic isolation.
To download a copy of “EU-Mercosur Trade Agreement: opportunities for Latin America”, please click here.
For further information, please contact:
Communications Executive – Euromonitor International
Tel: +55 (11) 2970-2150 ext. 2175
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