The annual Food and Beverage Attractiveness (FBA) index, a co-production by IESE Business School and Deloitte, named the United States, China, and Germany as the most attractive export destinations for food and beverage companies.
The United States is the most attractive market in the index for the most attractive market for companies after gaining its position as the world's leader in terms of imports of both food and beverage. The western country is placed on top position in almost all specific import categories.
China follows the United States in the list due to its large population. China is the world's leader in terms of population. The Asian country is ranked second in terms of food and beverage import.
Germany ranks third on the index. The European country is one of the largest food and drink producers in the European Union. It is dependent on both domestic and foreign suppliers and it is integrated into the international trade of food and beverages.
The list also included the strengths and weaknesses of other nations in the import of the products. The United Kingdom fell five places in two years in its recent position at number 10 following the growing concerns over the Brexit. The uncertainty of the Brexit is said to slow down the growth of the United Kingdom which dragged the nation on the index. There is also a growing concern over tariffs that are about to be restored with the trading partners of the European Union. The report showed that 58 percent of food and beverage export of the United Kingdom and 61 percent of its exports will go to or from Europe.
Recently, leading British supermarket chains and local subsidiaries of fast food chains like McDonald and KFC warned about the risks of sharp prices increases and food shortages if the bloc agrees on the Brexit.
Despite the lead of the United States in the rank, Europe remained as the most attractive region for the food industry. Five European nations are on the top 10 and nine is included in the top 20 list.
European nations stood out in terms of the soundness of their economic and legal framework and their citizens' high incomes and per capita spending on food. The most attractive European markets included Germany, the Netherlands, France, Switzerland, and the United Kingdom.
Asia is ranked second as the most attractive region following Europe. China, Hong Kong, and Japan are among the top performers in the index for Asia.
