Dubai, UAE; May 13, 2019: As per the latest financial data released by Parmigiano Reggiano Consortium, the GCC region has emerged as a key market for Parmigiano Reggiano exports with exports for 2018 reaching 105.2 tons.
Earlier this year Parmigiano Reggiano Consortium launched a large-scale awareness campaign in Saudi Arabia, UAE and Kuwait to educate Arab consumers on the specific characteristics of Parmigiano Reggiano, a cheese that stands out for its selection of the best and 100% natural ingredients and for using the same recipe for one thousand years.
The breakdown of Parmigiano Reggiano exports to GCC region are as follows:
Parmigiano Reggiano Wheels: 11.5 tons
Parmigiano Reggiano Wedges: 92.1 tons
Grated Parmigiano Reggiano: 1.1 tons
Parmigiano Reggiano Snacks: 0.4 tons
Nicola Bertinelli, president of the Parmigiano Reggiano Consortium, says: “Parmigiano Reggiano continues to grow and expand its market. 2018 has been again a positive year: we reported an increase in production (+1.35), quotations (+2%) and exports (+5.5%). In spite of an increased product offer on the market, the price was steady and settled around 10 euro per kg (12 month Parmigiano Reggiano from producing dairy, average price at production).”
“The foreign market is increasingly more important,” continued Bertinelli. “In 2018 we have exceeded the record share of 40%, an amazing performance considering that the figure was 34% only five years ago. Our key markets are France, United States, Germany, United Kingdom and Canada.
The Consortium is investing a considerable budget (over 24 million euro) in promoting the PDO designation in Italy and abroad, with specific focus on new destination areas for consumption for our cheese, such as the United Arab Emirates, where we launched a communication campaign to educate the consumer on the differences between the ‘real' Parmigiano Reggiano and the fake Parmesan”.
2018 was a record year for Parmigiano Reggiano PDO production, which saw a total increase of 1.35% over the previous year.
The 3.7 million wheels of cheese (about 148 thousand tons) produced in 2018 represent the highest peak in the age-old history of Parmigiano Reggiano. Parmigiano Reggiano not only is the first PDO brand in the world as far as influence (“The Most Influential Brands 2018” ranking prepared by IPSOS), but it is also number one PDO/PGI food product in terms of value at production (Qualivita-Ismea report). 2.4 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 two years, production rose from 3.47 million to 3.7 million wheels, a 6.6% increase.
Parmigiano Reggiano is also enjoying a very good period as far as price are concerned. While in 2016 the cost per kg was 8.60 euro, in 2018 the average price stood at 10 euro, a 16.3% increase (average price of 12 month Parmigiano Reggiano from producing dairy, source: bulletins from Borsa Comprensoriale Parma) Today, Italy accounts for 60% of the market, while the export share is 40% (+5.5% over the previous year).
France is the largest market (11,333 tons), followed by United States (10,493 tons), Germany (9,471 tons), United Kingdom (6,940 tons) and Canada (3,030 tons). France and the United Kingdom grow (respectively +12.6%, +2.2%) Germany slows down (-4.4%) due to competition from similar products. On the other hand, exports to Canada increase (+17.7%), thus confirming, thanks to the CETA agreements, the expected opportunities for development.
Aiming at increasing demand, the Consortium's budget includes an investment in communication for over 24 million euro destined to the development of sales in Italy and abroad, 1.5 million more than in the previous year.