Challenges and Opportunities of Italian Food Products in the U.S. Market

Abstract

This thesis analyzes the current situation of Italian food in the American Market, with the aim of helping Italian companies to understand the peculiarities, opportunities and issues of the market. After pointing out the importance of the agri-food industry for the Italian economy and the key role of export, I will provide a general overview of the characteristics and new trends of the US market in this specific industry. Although a free trade agreement has not been reached yet, the United States is a fundamental market for the Italian food and beverage sector: it is the first extra-EU destination for Italian product and the first source of surplus for our country. On the other hand, Italy is one of the major suppliers of food for the US and it is the leader of the market for some traditional products, such as olive oil, vinegar, cheese and pasta.

However, the imitations of Italian food products, especially through Italian sounding practices, are a central issue in the market, causing huge losses of earning for Italian export, other than damaging the reputation of the entire “Made in Italy”. The different regulation system is considered the main trade barrier for international exchanges between the US and the EU, especially regarding Geographical Indications, which certify the quality of typical European food products. Italy has the highest number of Geographical Indications in the world: since American law does not recognize them, the imitation of Italian products continues to grow. Parmigiano-Reggiano, in particular is the most imitated food product in the world.

I decided to conduct a survey, addressed to consumers living in the metropolitan Atlanta area, in order to test their interest in buying original Italian food, their awareness of imitations and their willingness to pay a premium for authenticity. In fact, in order to fight against imitation practices and to plan the right strategy for a successful market penetration of Italian food products, it is important to understand consumers' sensitivity about this topic.