Van Dam et al. International Journal of Behavioral Nutrition and Physical Activity (2021) 18:54 https://doi.org/10.1186/s12966-021-01117-8 RESEARCH Open Access A detailed mapping of the food industry in the European single market: similarities and differences in market structure across countries and sectors Iris Van Dam1,2, Benjamin Wood3, Gary Sacks3, Olivier Allais2 and Stefanie Vandevijvere1* Abstract Background: Food environments are influenced by food industries (packaged food and non-alcoholic beverage manufacturers; supermarkets and quick service restaurants). An important source of this influence is the significant market power held by a limited number of food companies. Market structure analysis, as part of a broader market power research agenda, has received limited attention from the public health community. The aim of this study was to analyse similarities and differences in market structure across countries and industries in the European Single Market. Methods: The companies with the largest market share at the national level for each industry were identified from Euromonitor sales data in 2017/18. The market structure was assessed by the following metrics: the number of global brand owners with ≥1% market share per country, the number of companies unique for one European Single Market member state, the most sold packaged food and non-alcoholic beverage categories, the number of quick-service restaurants and supermarkets per 1000 inhabitants and market concentration by means of the Herfindahl-Hirschman Index (HHI) and the four firm concentration ratio (CR4). CR4-values > 40% and HHI-values > 2000 indicate concentrated markets with limited competition. Results: The leading packaged food and non-alcoholic beverage manufacturers and the most sold food and beverage product categories were similar across countries in Europe. The observed levels of concentration were however different. Average CR4-values ranged from 21 to 72% among packaged food product markets and 60 to 76% for non-alcoholic beverage product markets. Average CR4-values for quick service restaurants and supermarkets were 50 and 60%, respectively. Across European countries the same leading quick-service restaurants were identified, while this was not the case for supermarkets. Conclusions: This study forms an important basis to understand key aspects of market structure of the European food industry, observing clear differences between food industries and European Single Market member states. This has potential implications for the implementation of food environment policies at different levels of jurisdiction. Keywords: Food industry, Packaged food, Non-alcoholic beverages, Supermarkets, Quick service restaurants, Europe, Food environments * Correspondence: [email protected] 1Sciensano, Service of Lifestyle and chronic diseases, Brussels, Belgium Full list of author information is available at the end of the article © The Author(s). 2021 Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/. The Creative Commons Public Domain Dedication waiver (http://creativecommons.org/publicdomain/zero/1.0/) applies to the data made available in this article, unless otherwise stated in a credit line to the data. Van Dam et al. International Journal of Behavioral Nutrition and Physical Activity (2021) 18:54 Page 2 of 15 Background competition in a market is generally considered to in- Since the second world war, diets and lifestyles in Eur- crease the market power of incumbent companies [18, ope have significantly changed together with the devel- 20]. However, market structure analysis has not received opment of the European Single Market (ESM) [1]. In much attention by the public health community. 2016, on average, 59% of the European adult population This study sets out to analyse similarities and differ- was classified as being overweight (Body Mass Index, ences in market structure across countries and industries BMI ≥ 25 kg/m2)[2, 3]. Overweight is often seen as an (i.e. packaged food and non-alcoholic beverage manufac- issue of individual responsibility, but there are important turers, supermarkets and quick service restaurants) in determinants, such as those related to food environ- the European Single Market (ESM). Following metrics ments, that are beyond the control of the individual [4– were used: the number of food companies with ≥1% 8]. market share per country, the number of companies Food environments are generally defined as: “The col- unique for one ESM member state, the most sold pack- lective physical, economic, policy and sociocultural sur- aged food and non-alcoholic beverage categories, the roundings, opportunities and conditions that influence number of quick-service restaurant and supermarket people’s food and beverage choices and nutritional sta- outlets per 1000 inhabitants; and market concentration tus” [9]. In many areas around the world, current food measured by the Herfindahl-Hirschman Index (HHI) environments can be described as environments that and the four firm concentration ratio (CR4) [18, 21]. Po- make the less healthy food choices the easiest choices, as tential implications of the similarities and differences in less healthy foods are often more available, heavily mar- market structure across countries and industries for the keted and cheaper [10]. Food companies, including food implementation of policies to improve the food environ- and beverage manufacturers, supermarkets and quick ment at national and European level are discussed. service restaurants, are considered to play a substantial role in shaping food environments [9, 11, 12]. Food companies directly influence food environments by Methodology manufacturing, distributing and marketing food prod- Selection of countries ucts that are made available to consumers. Food com- Sales and market share data from all countries within panies also indirectly influence food environments, such the European Single Market (European Union’s28 as through the deployment of political strategies that member states and 4 EFTA – European Free Trade As- serve to shape and influence public opinion and political sociation – members, ESM) were included. The Euro- decision making [12–14]. An important source of this monitor International Passport Global Market influence – both direct and indirect - on food environ- Information Database was found to have the best avail- ments is the significant market power held by a limited able data for the majority of the selected countries and number of food companies [12, 13, 15]. Substantial mar- product markets. Euromonitor is the world’s leading in- ket power can confer dominant food companies with the dependent provider of strategic market research and col- ability to structure food retail environments and food lects volume sales data from various sources including supply chains to suit their own private interests, and can trade associations, industry bodies, company financial re- also allow for the generation of considerable profits ports, and official government statistics. These data are above what would be possible in a competitive market validated by food industry representatives. environment. These profits can then be used to fund For this study, data were obtained at the most fine- practices that undermine public health (e.g. lobbying, in- grained level (212 food subgroups in total) over the tense marketing) [16, 17]. period 2009–2018 for packaged food and non-alcohol An important step in examining market power is to beverage manufacturers and supermarkets and over the analyse the market structure in which firms operate [18]. period 2008–2017 for quick service restaurants [21]. For Although market structure analysis alone does not pro- the following member states no Euromonitor data were vide a complete picture of the extent of market power available: Cyprus, Iceland, Liechtenstein, Luxembourg held by firms, it is nevertheless useful in understanding and Malta. As a result, a total of 27 EU countries were the structural power of firms relative to other market- included in this study to represent the ESM, 14 in West- based actors. Market concentration, in particular, is an ern Europe (52%) and 13 in Eastern Europe (48%). For informative market structure metric, which, for decades, these 27 countries Euromonitor data for both packaged has been considered a key component of market struc- food and non-alcoholic beverage manufacturers and su- ture analysis [19]. As market concentration increases, permarkets were available. For quick-service restaurants, the level of competition in the market generally de- data were only available for 22 out of these 27 member creases. In turn, given the inverse relationship between states, of which eight (36%) were in