The economic situation in Greece has created several challenges for the food retail market. According to a recent USDA Foreign Service report, a number of factors have resulted in lower consumer spending on food items, a situation that poses challenges for those wishing to export products to Greece.
The Greek economy contracted in 2009 and has led to several problems, one of which is a high unemployment rate. Resulting government budget deficits have been met with increased VAT rates to make up deficits. This has led to a decrease in consumer spending overall and a decrease in sales in the food market. Retail food sales in Greece have dropped 17.7% since 2010.
The retail food industry in Greece is a high-growth sector and makes up about a quarter of the country's most profitable companies. With the slowdown in consumer spending, food retailers are susceptible to the economic situation.
The majority of US food exports to Greece were in the form of tree nuts, with exports valued at $32 million sent to Greece in 2010. The USDA report recommends those wishing to export to Greece find local contacts due to European Union trade standards which restrict the products which may enter European markets.