Parmigiano Reggiano Records 62.3% Growth in GCC Markets

 

Dubai, UAE - 11 March 2021: 2020 was a record year for Parmigiano Reggiano PDO production, which saw a total increase of 4.9% globally over the previous year. The export share was 44% (+10.7% of volume growth vs. previous year). Of the main international markets, the best performance was recorded in the GCC countries (+62.3%), followed by the United Kingdom (+21.8%), Germany (+14.8%) and France (+4.2%).

 

“Despite the difficulties associated with the pandemic, Parmigiano Reggiano ended 2020 with a successful result that has rewarded the reputation, the quality of the PDO product with the highest value in the world. Consumers forced to give up out-of-home meals for several months have shown their preferences very clearly on all markets.  We are ready to deal with a challenging 2021: the Parmigiano Reggiano brand can become a true global brand and we are working in this direction,” comments Nicola Bertinelli, President of the Parmigiano Reggiano Consortium. 

 

The 3.94 million wheels of cheese (about 160 thousand tons) produced in 2020 represent the highest peak in the age-old history of Parmigiano Reggiano. 2.35 billion euro turnover for the protected designation of origin product, which is increasingly expanding abroad: an outlet for a constantly growing production that needs new market spaces. In the last four years, production rose from 3.47 million to 3.94 million wheels with a 13.5% increase. 

 

Parmigiano Reggiano also enjoyed a very good 2020 as far as prices are concerned. If in the first semester, the price of 12-month Parmigiano Reggiano cheese (average price of 12-month Parmigiano Reggiano from producing dairy, source: bulletins from Borsa Comprensoriale Parma) was 7.55 euro/kg, at the end of the year it rose above 10 euro/kg. The average annual price (8.56 euro/kg) was below the 2019 price, but the remarkable increase in the second half of the year led to a recovery of margins. 

 

Italy – which accounts for 56% of the market for Parmigiano Reggiano – recorded a 7.9%  increase of the sales volumes.  Globally, Large Retail is still the top distribution channel (61%), followed by normal trade (13%), retail (12%) and food industry (4%). The Horeca channel accounts for only 2% - thus with open to considerable margins for improvement - and experienced a drastic fall caused by the closure of restaurants during the pandemic.  The remaining 7% is distributed in other sales channels.