Austria - AgricultureAustria - Agriculture

Overview

In 2018, Austria’s total agriculture, fish and forestry imports were USD 15.5 billion and exports were USD 15.3 billion.  In total, 84 percent of all imported agricultural products came from the EU and 79 percent of all exported goods were delivered to EU Member States. Austria’s most important agricultural trading partners are Germany and Italy.  

Austria imported USD 118 million worth of U.S. agricultural, fishery and forestry products in 2018.  Official import numbers do not include significant and steadily growing transshipments of U.S. products from other EU countries.  

When responding to polls, Austrian consumers usually express a preference for high quality, regionally and sustainably produced foods; but when it comes to actually buying patterns, price appears to be one of the major purchasing factors for a majority of the population.  However, for special events most people, even in lower income brackets, are willing to spend more for “exclusive” products.  In addition, the higher income and gourmet market segments (which regularly buy high priced foods) are growing.

Private consumption is projected to remain high and grow even further, as a result of higher disposable income due to tax relief, a low unemployment rate, a growing population— including an increasing number of migrants, and a relatively good economic situation.  

Food and beverage sales benefit from increasing total consumer expenditures.  In 2018, consumer expenditures on food and beverages (including alcoholic beverages and tobacco) are estimated at almost USD 3,500 per capita.  The share of food and beverage expenditures of total consumer expenditures remains fairly stable (about 13 percent) over the years. 

The traditional Austrian diet is based on pork, wheat flour, and vegetables. Cakes and bakery products are important parts of the diet.  But there is an increasing interest in healthy lifestyles.  Consumers are increasingly concerned about excess calories and healthy diets.  The younger generation also appreciates trying new products and is a logical segment to aim for with new food product introductions.  Since the population is steadily becoming older, the 50+ generation is also an important target market for food products considering their specific needs, including health foods.

Biotech, genetically engineered (GE) or ‘GMO’ food products have a very negative image among the Austrian public.  Food products that have to be labeled as biotech do not sell in Austria and cannot be found in Austrian retail stores.  Austrian retailers even promote biotech free food.  There is an Austrian label for biotech free products issued by “ARGE Gentechnik-frei” (Platform for ‘GMO-Free’ Food Products) which follows the requirements for biotech-free food products laid down by the Austrian food codex.  The label states “produced without biotech” (ohne Gentechnik hergestellt).  Major products are milk and dairy products (cows must not be fed GE feed), bread and bakery products, eggs (laying hens must not be fed biotech feed), soybean products, meat, fruits and vegetables.

A counterpoint to the negative view of biotech foods is Austria’s strong and still growing market for organic agricultural and food products.  The market share of organics in food retail accounts for about eight percent and Austria has the highest percentage of organic farm land within the EU.  Thus, opportunities exist for U.S. organic companies and exporters interested in the Austrian market.

Driven by the Austrian government and non-governmental organizations (NGOs), Austrian consumers are highly aware of environmental issues.  This creates a rapidly growing market for sustainably and regionally produced food products.  In reaction to this trend, retail chains started launching private labels promoting the “sustainability” and “regionality” of their products.

(total market size = (total local production + imports) - exports)
Units: $ thousands

Data Sources:
Total Local Production: Federal Ministry of Sustainability and Tourism (2016 – 2017), Foreign Agricultural Service Estimates (2018 - 2019)

Total Exports, Total Imports, Imports from the US, Exchange Rates: Global Trade Atlas International (2016 – 2018), Foreign Agricultural Service Estimates (2019)
 

Leading Sub-Sectors

Fish and Seafood Products
The Austrian market offers small but lucrative opportunities for fish and seafood products.  Fish consumption in Austria is growing as consumers associate fishery products with a modern healthy diet.  Domestic fish production is marginal and limited to fresh water fish like trout and carp.  Best prospects for U.S. fish and seafood exports are salmon, pollock, lobster, shrimps, crabs, caviar substitutes, catfish, and scallops.

Tree Nuts
In 2018, the United States was the fourth largest supplier of tree nuts (in value and quantity) to Austria.  Most tree nuts are used as ingredients by the food processing sector.  Almonds are the most important commodity within this category.  Further products with good sales potential include walnuts, pistachios, pecans, and hazelnuts.

Wine
Austria has traditionally a high share of domestic wine consumption.  However, good prospects exist for “new world wines,” including those from the United States.  In 2018, the United States was the fifth most important supplier (by value) of wine to Austria.

Processed Fruits and Vegetables
Austrian imports of processed fruits and vegetables are mainly prepared nuts/seeds and dried fruits.  Those products are mostly used as ingredients by the food-processing sector for the production of pastries and breakfast cereals.  Dried fruits and prepared nuts are also popular as a snack.

Fruit and Vegetable Juices
A very strong fruit juice industry makes Austria one of the most important juice importers worldwide.  The demand for fruit juices is high.  Good opportunities for U.S. fruit juices in the Austrian market are citrus and cranberry juices. (Note: EU retaliatory tariff on orange juice and cranberry juice of 25 percent, introduced by end of June 2018, are expected to have a negative impact on imports.)

Snack Foods (Excl. Nuts)
The Austrian demand for healthy, organic, innovative, and exotic snacks is at a high level.

Red Meats Fresh/ Chilled/ Frozen
Limited but lucrative and increasing opportunities exist for U.S. hormone-free, high quality beef, game and exotic meat for the upper scale gastronomy.

Whiskies (Bourbon)
When it comes to hard liquor, Austrians traditionally drink Schnapps but there is also a good market for whiskeys with increasing popularity.  The United States is the second largest supplier, after the United Kingdom.  (Note: EU retaliatory tariff on whiskeys of 25 percent, introduced by end of June 2018, are expected to have a negative impact on imports.)
 

Opportunities

Although foods and beverages from Austria, Germany, and other EU countries dominate Austrian retail shelf space, there are good market opportunities for U.S. products, particularly at the upper end of the market.  Consumer-oriented food and beverage products remain the most important agricultural imports from the United States.  In 2018, the consumer oriented sector accounted for USD 66.9 million, almost 57 percent of total agricultural, fish and forestry imports from the United States. 

Austrian consumer trends are creating good market opportunities for organic, health, diet, convenience, and ‘sustainable’ food products. 

Market opportunities for U.S. products include but are not limited to nuts, dried/processed fruits, spirits - especially whiskies, wine, fruit juices, snack foods, fish and seafood products, hormone-free high quality beef, game and exotic meats for the up-scale cuisine. 
 

Web Resources