As European consumers become increasingly conscious of their food choices, the demand for high-quality, organic, and sustainably produced food has surged. This shift in consumer preference has opened doors for U.S. agricultural products, which are now meeting the needs of a discerning European market. We explore this trend in conversation with Jessica Loeser, Agricultural Marketing Specialist for Germany and Austria at the USDA Foreign Agricultural Service (FAS), who shares insights into the transatlantic trade dynamics and opportunities for European importers.
Rising Demand for Quality and Sustainability
“European consumers are increasingly seeking high-quality, organic, and sustainably produced food, driving up demand for respective U.S. agricultural products,” states Jessica Loeser. “They drive the change with their decisions every day. We see a trend of awareness emerging, where consumers make a link between their diets and climate change. The plant-based and indulging-health trends are the most prominent of them. Especially Gen Z and Millennials are embracing a more sustainable and healthy lifestyle.”
This growing demand reflects a broader societal shift towards environmentally responsible and health-conscious living, which U.S. agricultural products are well-positioned to meet.
Aligning with Dietary Preferences and Health Trends
European consumers’ dietary preferences have evolved to favor plant-based, gluten-free, and superfood options. “Within the plant-based trend is the trend of familiar and recognizable choices,” Jessica explains. “Consumers are increasingly embracing plant-based products, but they also seek familiarity and clarity; they don’t want to sacrifice convenience. This is why there is growing popularity in plant-based versions of well-known dishes and formats, as they offer a sense of comfort.”
Jessica highlights that the demand for U.S. plant-based options in snack foods and ready meals has increased by 25% since 2018. For instance, plant-based ice creams compete strongly with dairy options in convenience stores and restaurants in major European cities like Berlin. Additionally, the indulging-health trend has seen consumers favor healthier versions of sweet and snack foods, such as sugar-free, low-carb, and protein-enriched products, with nut butters gaining significant popularity.
Meeting European Sustainability Standards
Sustainability is a cornerstone of U.S. agricultural practices, resonating with European values. “The U.S. has a long history of sustainability and conservation,” Jessica shares. “Long before the perils of climate change were identified, we became aware of the importance of working in harmony with the natural environment by conserving where we can and restoring where we can’t.”
U.S. agricultural products adhere to practices such as reduced pesticide use, crop rotation, and conservation tillage, aligning with European standards. This commitment to sustainability has garnered trust and preference among European consumers who demand transparency and environmental responsibility from brands and producers.
Simplifying Organic Trade with the U.S.–EU Organic Equivalence Arrangement
The U.S.–EU Organic Equivalence Trade Arrangement, effective since June 1, 2012, has facilitated smoother trade between the two markets. “This arrangement has significantly simplified the process for sourcing, shipping, labeling, marketing, and selling products, making them more accessible and affordable,” Jessica notes.
Since the arrangement’s inception, organic food sales in the EU have soared from $24 billion to $55 billion today, with Germany and France leading the demand for organic products. This agreement has been instrumental in making U.S. organic products more readily available to European consumers.
Overcoming Logistical Challenges
Importing U.S. agricultural products involves navigating complex logistical and regulatory frameworks. “Challenges include non-tariff barriers like phytosanitary restrictions and traceability requirements,” Jessica points out. However, the USDA FAS offers robust support to help European importers overcome these hurdles.
“USDA’s Foreign Agricultural Service generates over 2,000 reports per year, helping understand markets, export opportunities, needs, and demands, as well as regulations and restrictions,” Jessica adds. This comprehensive support system ensures that European importers can effectively manage the intricacies of transatlantic trade.
Future Opportunities for Growth
Looking ahead, the potential for U.S. agricultural products in Europe remains strong. “Germany is the second largest organic market in the world (behind the United States) and presents great prospects for exporters of organic products,” Jessica emphasizes. “In particular, prospects for tree nuts, specialty crops, and healthy options of processed products look promising as European consumers continue to prioritize health, quality, and sustainability.”
The growing role of U.S. agriculture in European markets highlights the alignment of American farming practices with European consumer trends and values. As demand for high-quality, organic, and sustainably produced food continues to rise, U.S. agricultural products are well-positioned to meet these needs, providing significant opportunities for European importers and consumers. This alignment between U.S. agricultural offerings and European market preferences is paving the way for continued growth and collaboration in transatlantic trade.
