In this article, we will look at the Top 20 Food Exporting Countries in the World with insights into factors like the value and volume of food exports, the number of food export products, and the growth rate. For a quick overview of the top 5 food-exporting countries, read our article Top 5 Food Exporting Countries in the World.
The global food export industry is constantly changing. Events like the COVID-19 pandemic, the Russia-Ukraine conflict, and rising inflation have messed with how food gets traded globally. But one thing has yet to change: how important it is for countries to sell food to other countries.
Currently, the global population is more than 8 billion, and this number is expected to go up to 11.2 billion by 2100. As the population grows and climate change alters annual food production in some countries by large numbers, the need for food exports will play an even bigger role in food security. Countries that can keep up with this demand are expected to do well in the global food export industry.
Several food companies are dealing with the volatility in the commodities markets by taking several steps. For instance, Bunge Ltd (NYSE:BG), a global agribusiness and food company, uses hedging to protect itself from the risk of rising commodity prices. This means that the company locks in a commodity’s worth in advance, protecting it from price fluctuations. Bunge Ltd (NYSE:BG) declared that the cost of goods sold went up by 10% in 2022 as compared to the end of 2021, driven by inflation.
Bunge’s stock performed well so far in 2023, returning around 18%. Despite the volatility in the commodities markets, the earnings increased by 11.9% in the past year. Bunge Ltd (NYSE:BG) also generated a trailing EPS of close to $13 and currently has a trailing P/E of less than 9. The company declared a quarterly cash dividend of $0.6625 per common share on August 17, 2023.
A Look into the Food Industry
One of the top food exporting countries in the world, the United States, is also home to some of the largest supermarket chains in the world. Walmart (NYSE:WMT), for example, is the largest supermarket chain in the United States. As of August 2023, Walmart (NYSE:WMT) holds a market capitalization of $425.02 billion. With an 8.3% share in VanEck Vectors Retail ETF, Walmart (NYSE:WMT) holds the third rank among the list of 25 largest retail firms. It’s a multi-category store, but the food and beverage category alone makes up to 60% of Walmart’s US business.
These chains have benefited from the growing food demand by expanding their operations and increasing their market share. In its Q2 earnings, Walmart (NYSE:WMT) disclosed that half of its sales come from food and related items. Walmart is the 39th most popular stock among the 900+ equity hedge funds tracked by Insider Monkey at the end of June.
Nestlé (OTCMKTS:NSRGY), one of the world’s largest beverage companies, has a market cap of approximately $323 billion and has reported sales of $52.8 billion in the first 6 months of 2023, with net profit margin rising by 70 basis points to 12.2% as compared to last year. Nestle, known for its Kit Kat chocolate bars and Nescafe coffee, saw its earnings per share jump by 10.6% in the first half of 2023. This growth followed a 9.5% average price increase across its products. At the moment food companies don’t experience any pushback from the consumers regarding passing along the increases in food prices.
The Impact of Climate Change on Food Export
Climate change is having a significant impact on the global food exports. Changing weather patterns make it more challenging to grow crops and raise livestock. This is leading to food shortages in some parts of the world as well as an increase in food prices.
For example, in 2021, a drought in California caused a shortage of fruits and vegetables, impacting more than 37 million people. The forecast for processing tomatoes in 2022 decreased to 10.5 million tons. This is a 10% decrease from the original prediction of 12.2 million tons. The drought has made it difficult to grow tomatoes, and it has also led to higher costs for water. The higher prices have made it less profitable for farmers to grow tomatoes, and some have switched to other crops.
Moreover, two major factors, i.e., pollution and greenhouse gas emission, also play a negative role in the impact of climate change on food production. Utilizing renewable energy can reduce these negative impacts. In this regard, some prominent companies like Kellogg (NYSE:K) are playing their role. Kellogg (NYSE:K) is an American multinational food company, and it has set a goal of using 100% renewable energy by 2050. Kellogg (NYSE:K) has a current market capitalization of around $21 billion, making it one of the most valuable food companies in the world.
Nestlé is also partnering with the National Fish and Wildlife Foundation to invest $30 million in the BeefUp Sustainability project. The project aims to reduce greenhouse gas emissions from beef production by up to 30% by 2030.
For our list of the top 20 food exporting countries in the world, we used three key metrics: the value of food exports, volume of food exports, and food growth rate.
To ensure the accuracy and reliability of our analysis, we draw upon reputable indexes, i.e., The Food and Agriculture Organization (FAO Stat), World Integrated Trade Solution (WITS), and The Observatory of Economic Complexity (OEC). By integrating data from these reliable indices, we present a list of the top 20 food exporting countries in the world, shedding light on their economic contributions and growth trajectories in the global food export country ranking.
We started by scoring countries on each metric from 1 to 20 (1 indicating the highest rank and 20 the lowest in our study).
To provide a balanced evaluation, each metric was assigned a specific weight, reflecting its relative importance:
- Value of food exports: 30%
- Volume of food exports: 30%
- Food export growth rate: 40%
By considering these specific weights of each metric, weighted averages are calculated that reflect the relative significance of each criterion. We then ranked the countries in descending order from 20 to 1 (based on the weighted average results), with 1 representing the country with the most food exports and 20 representing the country with the least food exports on our list.
Below is our list of the top 20 food exporting countries in the world.
Top 20 Food Exporting Countries in the World
20. Spain
Annual Volume of food exports (Million Tons): 12.6
Annual Value of food exports (USD Millions): 13.2
Olive oil, wine, and fruits are the top food exports from Spain. Around 27 million tons of vegetables and fresh fruits were produced by Spain in 2021, out of which 60% were destined for export.
19. Russia
Annual Volume of food exports (Million Tons): 15.1
Annual Value of food exports (USD Millions): 13.9
Key food export items of Russia are wheat, sunflower oil, and meat. Russia was forecasted to hit a record wheat export of 45 million tons in 2022-2023. It is also a major producer of fruits, vegetables, and seafood.
18. Italy
Annual Volume of food exports (Million Tons): 9.6
Annual Value of food exports (USD Millions): 14.9
Italy has a strong global presence in the food market with iconic products like pasta, olive oil, and wine. The agriculture industry contributes to around 2.2% of the country’s GDP.
17. Thailand
Annual Volume of food exports (Million Tons): 21.4
Annual Value of food exports (USD Millions): 6.8
Thailand is one of the world’s leading food exporters, with the value of food exports reaching $38.8 billion in 2022. Thailand is a major exporter of seafood, chicken, canned tuna, sugar, rice, fruits, and cassava products. The main export destinations for Thai food are Japan, the United States, Vietnam, China, and Cambodia.
16. Belgium
Annual Volume of food exports (Million Tons): 10.7
Annual Value of food exports (USD Millions): 17.3
Belgium is a member of the European Union, which gives it access to a large market. The country has a long history of food production and processing. The country’s top food exports include beer, chocolate, waffles, and pastries. Other important exports include potatoes, fruits, vegetables, and dairy products. In 2022, Belgium witnessed a 6.7% food export growth rate.
15. Switzerland
Annual Volume of food exports (Million Tons): 4.9
Annual Value of food exports (USD Millions): 12.1
Switzerland has emerged as a notable food exporting nation, renowned for its precision and quality. It is known for exporting chocolates, cheeses, and premium dairy items. In 2022, the country’s food export value stood at $881 million.
14. Norway
Annual Volume of food exports (Million Tons): 22.3
Annual Value of food exports (USD Millions): 8.1
Norway is a prominent player in the global food export market, showcasing its excellence in seafood production. Renowned for its high-quality salmon, trout, and other aquatic products, Norway’s commitment to sustainable fishing further enhances its reputation as a competitive food exporter.
13. Mexico
Annual Volume of food exports (Million Tons): 26.9
Annual Value of food exports (USD Millions): 8.2
Avocados, tomatoes, and coffee account for a significant portion of Mexico’s food exports. It is also a major producer of fruits, vegetables, and seafood. Its food exports are a significant economic driver, with a yearly value of approximately $10.7 billion. This underscores Mexico’s influence in global food markets.
12. France
Annual Volume of food exports (Million Tons): 19.3
Annual Value of food exports (USD Millions): 2.6
France exports a variety of food products, but wine, cheese, and pastries are among its top food exports. Its food exports are highly sought after globally, from gourmet cheeses to fine wines. France’s food exports are driven by its favorable food-growing climate and rich culinary tradition.
11. United Kingdom
Annual Volume of food exports (Million Tons): 15.8
Annual Value of food exports (USD Millions): 57.7
Primary food export items of the United Kingdom include meat, dairy products, and processed foods. The UK’s food exports are driven by its strong agricultural sector and proximity to the European Union.
10. United Arab Emirates
Annual Volume of food exports (Million Tons): 24.2
Annual Value of food exports (USD Millions): 6.4
Even though the UAE has a desert environment, it has used advanced farming methods to become a significant food exporter. Dates, fish, and dairy products are the UAE’s top food exports. It is also a major producer of fruits, vegetables, and processed foods.
9. Australia
Annual Volume of food exports (Million Tons): 12.1
Annual Value of food exports (USD Millions): 12.1
Australia is a major exporter of beef, wheat, and dairy products. In 2021 to 2022, the country’s agriculture, forestry, and fisheries exports reached around $76 billion. Australia’s food exports are driven by its large agricultural sector and favorable crop-growing climate.
8. South Korea
Annual Volume of food exports (Million Tons): 29.8
Annual Value of food exports (USD Millions): 12.3
Seafood, fruits, and vegetables are leading food export items from South Korea. South Korea’s food exports are driven by its proximity to major markets and favorable crop-growing climate. It is also a significant producer of processed foods and beverages.
7. Japan
Annual Volume of food exports (Million Tons): 77.7
Annual Value of food exports (USD Millions): 26.1
In 2021, Japan generated over $2.8 billion from the exports of processed food. Seafood, processed foods, and machinery are the top food exports of Japan. This food trade prowess reflects Japan’s culinary prowess and strengthens its economic standing on the world stage.
6. Canada
Annual Volume of food exports (Million Tons): 34.3
Annual Value of food exports (USD Millions): 23.2
Canada’s top food exports include wheat, canola, and beef. In 2022, Canada exported around $92.8 billion in food and agriculture products, including fish, seafood, and processed foods. Canada’s food exports are driven by its vast agricultural land and cold climate, ideal for growing certain crops.
Click to continue reading and see the Top 5 Food Exporting Countries in the World.
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Disclosure. None. Top 20 Food Exporting Countries in the World is originally published on Insider Monkey.