Potential for growth in the HoReCa & food retail market in Turkey

In 2015, the Turkish HoReCa sector grew 3 times more than the world average, increasing by 11 percent. The market for HoReCa (hotels, restaurants and catering) and retail in Turkey, especially food retail, has enjoyed continuous growth trends and will continue to grow in the coming years due to the young population, continuous urbanization rate, the rising upper-middle class and the tourism sector.

 

Good climate, social people and more time outdoors

Turkish people are very social, living mainly the Mediterranean culture where family, friends and joyful activities are at the center of their lives. Turks prefer to eat out at least two or three times a week. Turkey is a traditional country, but is certainly not stuck in the past. The dining scene is mixed with both traditional and modern values. The population is dynamic and eager to explore international patterns, especially in the food sector where Norwegian food, including seafood producers and exporters, should take a closer look.

There is a strong culture for dining out in Turkey. Photo is taken in Istanbul.

Photo credit: ThinkStock, There is a strong culture for dining out in Turkey, especially in larger cities including Istanbul.

Overview of HoReCa in Turkey

Based on the survey “Foodservice monitor 2015”, conducted by Turkish Horeca Suppliers Association in cooperation with Ipsos Research; HoReCa sector grew 3 times more than the world average in 2015, increasing by 11%. By the end of 2015, the sector had reached 55 billion TL (approx. 140 billion NOK). The annual HoReCa spending in Turkey per capita is 1900 NOK/year whereas in the Eurozone it is 6650 NOK/year. This shows that there are still growth opportunities in the market. The annual growth of HoReCa spending the last few years has been steady, at around 15%.

Major cities in Turkey such as Istanbul, Ankara, Izmir, Adana, Muğla, and Antalya make up 50-55% of the sector’s market share. 62% of the HoReCa spending is related to food whereas 36% is for non- and alcoholic beverages, 2% for cleaning supplies.  Almost half of the expenditures are made in restaurants and fast-food chains.

A glance at food retail

Food retail in Turkey is divided into two groups as organized and unorganized/traditional retailing. Organized retailers include hyper-, supermarkets, discount stores, local markets/chains and gas station stores whereas unorganized retailers are individual convenience stores and open-air bazaars. During the last years there has been a shift towards organized retailing in the market.

Fish counters and imported food products are mainly found in super- and hypermarkets. But lately, smaller supermarkets and discount stores have started to offer vacuum packed or frozen meat, vegetable and seafood products. During the last few years convenience goods and high-value imported items are increasing in number and variety in super- and hypermarkets.

Due to the failed coup attempt in July, the economic climate has been less favorable in 2016 and is expected to be similar in 2017, before it continues to grow. However, the fact remains that Turkey will continue to be a fast growing market with a large young population who will be the trendsetters for the future. Therefore it is the right time for Norwegian food, including seafood producers and exporters to approach the Turkish market in order to grab the possibilities to satisfy the lifestyle of the generation that have a desire for a greater variety of products. This highly interested consumer group has an appetite for new tastes and brands!

For more information:
Please contact Innovation Norway in Istanbul.

Gülin Kan Yükseltan, Senior Market Advisor
T: +90 212 284 43 62
M: +90 532 260 82 84

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