Despite challenges from climate change to geopolitics, the sector remains steady
![](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/sector-reports/agrifood/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co_239421252/grid-0-par/wrapper/wrapper/image.img.82.3360.png/1722255058565/medium-risk-erd.png)
MEDIUM RISK FOR ENTERPRISES
Last Update: July 2024
Strengths & Weaknesses
![Strenghts](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/sector-reports/agrifood/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-0-par/wrapper_copy_copy_co/wrapper/image.img.82.3360.png/1720687529774/plus.png)
- Steady and growing market thanks to growing population
- High pricing power for most companies and producers
- Diverse market with growing demand for alternative products (proteins, plant-based etc.)
![Weaknesses](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/sector-reports/agrifood/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-1-par/wrapper_copy_copy/wrapper/image.img.82.3360.png/1720687542983/minus.png)
- Vulnerable to climate change: More frequent and severe floods and droughts affect crops and livestock
- Food-processing and packaged-food companies continue to struggle with high energy, transportation and input costs.
- Labor shortages, especially in the upstream segment and in Western Europe
- Global inflation has exacerbated price competition