The new geopolitical turmoil in the Middle East is creating conditions of heightened concern and unpredictable consequences for the global and domestic economies. However, the Greek food and beverage industry remains one of the most important pillars of stability and growth for the Greek economy. This was recently stated by Ioannis Giotis, president of the Hellenic Food and Beverage Industry Association, during the Association’s annual general meeting.
With a turnover of 26.2 billion euros, the Greek food and beverage industry is the largest sector of Greek manufacturing. It contributes significantly to the country’s productive capacity, with investments of €7.2 billion over the 10-year period 2015–2024. It is the largest employer in manufacturing, providing more than 160,000 direct jobs, a number it continues to grow steadily. Over time, it has been one of the country’s most important export forces, with Greek food and beverage products recording exports of €7.4 billion, representing 15% of Greece’s total exports.
Speaking to the Athens-Macedonian News Agency, Apostolos Petalas, general director of the Hellenic Supermarket Association (ESE), emphasizes that the food industry in Greece has played a significant role in recent years in ensuring quality, product availability, employment, and investment. However, he notes that “its impact on exports could be much greater if it could count on strong government support in this direction. Especially in terms of investment, energy costs, and, of course, distribution channels in international markets.”
As he explains, energy costs in Greece are excessively high, creating a problem for the Greek food industry. “The food industry produces products in Greece for Greece. It could become a major exporter and contribute significantly to the national economy. In other words, one should be able to find standardized Greek food products all over the world. Unfortunately, this is not the case because the products are expensive, mainly due to energy costs, while the companies are relatively small and cannot build international export systems on their own. The government could seriously address this issue and provide a solution to the problem, but it does not.”
At the same time, according to Mr. Petalas, the government is creating obstacles to business activity through interventionist measures. After all, as he points out, government interventions aimed at curbing inflation—including the imposition of a cap on gross profit margins and the imposition of fines on businesses—make it difficult for businesses to operate.
It should be noted that the cap was imposed in mid-March with a target completion date of late June and applies to more than 60 categories of food and other essential items for every Greek household. Under the measure, no one may sell with a higher gross profit margin per item code than the average margin for that code in 2025.
What is driving food price increases
SEVT President I. Giotis, speaking at the general assembly, asked that the food industry not be targeted for price increases. “As the food and beverage industry, we fully recognize the importance of our role and support Greek society not only by keeping prices in check, but also by distributing products to socially vulnerable groups and responding immediately during times of crisis. “Inflation is our worst enemy—we don’t want it, we don’t seek it,” he stated emphatically.
Mr. Giotis referred to the criticism the sector has faced regarding food price hikes. He recalled that two years ago, the food industry was targeted for rising inflation, mainly due to the increase in the price of olive oil. Today, there is once again a tendency to demonize the sector for price increases stemming from other product categories—such as fruits, vegetables, fish, and meat—that have no connection to branded, standardized foods.
The rise in food prices during the first four months of 2026 is mainly linked to price increases in fresh and unprocessed products, according to data from an IOBE study presented at the SEVT general assembly.
The data show that in April, food inflation in Greece stood at 4.4%, with the largest increases recorded in unprocessed foods, where the relevant index rose to 9.2%. In contrast, price increases for processed foods remained particularly limited, at 0.6%.
A significant portion of the price pressures stems from categories such as fruits, vegetables, and fish, products whose pricing is directly influenced by factors such as weather conditions, the effects of climate change, production availability, and fluctuations in international agricultural markets. In contrast, prices for packaged and processed foods remained nearly stable, despite the ongoing pressure from energy costs and raw materials.
A similar picture is observed in the Eurozone, where food inflation stood at 2.2% in April. Price increases for unprocessed foods reached 4.6%, while those for processed foods were limited to 1%. However, inflationary pressures appear significantly stronger in the Greek market.
The study also notes a significant divergence between the cost of imported products and the production costs of the domestic food industry. In 2025, the Food Producer Price Index fell by 0.7%, while the Import Price Index rose by 6.3%, a trend that reflects the pressures being transmitted to the market from the external environment.
A similar picture emerges from the most recent data. Over the past five months, food producer prices rose by an average of 1.7% on an annual basis, while food inflation stood at 4.1%. In March 2026, specifically, producer prices rose by 1.8%, compared to a 4.4% increase in consumer prices. This difference suggests that the price increases observed in the market do not stem exclusively from manufacturing but are also influenced by factors related to international prices of raw materials, energy, and imported goods.
According to the IOBE analysis, energy costs remain a key factor driving inflation in the first months of the year. Energy’s contribution to the rise in prices is considered particularly significant, as without its impact, overall inflation in the Greek economy would be at significantly lower levels.
Inflation at supermarkets reached 1.14%
As Mr. Patalas explains in an interview with APE-MPE, fruits and vegetables are products affected by seasonality and therefore do not have a stable price. He also notes that the Greek food market, compared to the European food market, is largely unorganized, particularly in the fruit & vegetable and fresh meat sectors. Approximately 50% of meat and 60% of fruits and vegetables are sold outside the organized retail sector (open-air markets, fruit stands, greengrocers, etc.). For this reason, the channel’s productivity is low, and prices are generally unregulated. Supermarkets, as an organized market, ensure quality through quality controls and secure better prices for customers.
In May 2026, inflation in supermarket chains, according to IELKA, was +1.14% compared to 2025. The price index for May 2026, compared to the previous month of April 2026, increased by 0.29%. Overall, the rolling 12-month period (May 2025–April 2026) recorded an increase of +1.79%. It should be noted that half of the inflationary pressure is attributable to the fresh fruits and vegetables category, which has been affected by adverse weather conditions and seasonality over the past two months. The remaining categories show comparatively very small fluctuations. Of the 23 categories examined in the survey, 10 show an increase and 13 a decrease.
The largest price decreases in May 2026 compared to May 2025 were recorded in frozen foods (-4.37%), pet food and supplies (-3.20%), fresh and frozen dough (-1.92%), detergents and cleaning supplies (-1.42%), paper products, cosmetics, and personal hygiene items (-1.41%). The recorded decreases are the result of both market normalization and a reduction in producer prices for certain products. The largest increases in May 2026 compared to May 2025 were recorded in fresh fruits and vegetables (+8.59%), baby and children’s food (+5.05%), deli meats (+4.14%), fresh meat (+3.64%), and ready-to-eat meals (+3.64%).The increases in fresh fruits and vegetables are mainly attributed to weather conditions from January through early May 2026, including increased rainfall, low temperatures, and flooding, as well as delays in the new harvest of seasonal produce. The remaining categories show relatively small fluctuations. For example, the 22 categories excluding fresh fruits and vegetables show a total inflation rate of just 0.45%.