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BMI View: Italy's food and drink industry will gradually improve over 2016
and 2017, with growth stemming from a continued economic recovery, low inflation
and high levels of consumer confidence. The country's large ageing population
will increase demand for traditional foods, while growth in convenience items,
such as frozen foods, remains slow. The Italian drinks market is highly
developed and we expect to see only modest growth in this sector, predominantly
driven by premiumisation.
Key Trends & Industry Developments
-The recovery of Italy's economic growth will boost private consumption to 1.0%
and 0.9% in 2016 and 2017, which will support consumer spending on food.
-US-based Starbucks announced its plans to open its first store in Milan in
early 2017, which we expect will benefit largely from the country's
well-established tourism sector.