COUNTRY PROFILE
Discover more about the European market. Events, resources, and more are linked throughout the profile.
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In 2026, the market for U.S. exports of food products to Europe will remain both an opportunity and a formidable challenge. For European Union (EU) member states, the continued harmonization of external tariffs, common agricultural policies (CAP) and food regulations offer economy of scale for compliance on one hand, while creating higher barriers to trade on the other. The United Kingdom (UK) now years into “Brexit” is adapting its policies but remains in harmony with the EU on many agricultural issues and has some of its own disputes with the U.S. It is a mature, highly competitive, expensive and sophisticated bloc of individual markets.
Food Export’s strategies will continue to view Europe as a whole in the strategic plan, however this assessment focuses on the highest potential markets for activities and success with processed food exports from the U.S. There remains good potential for U.S. exports of high value food products (HVP) in many of the European countries, both in diverse market segments and various industrial sectors, which also rate highly for attention and action.
Euromonitor reports that Eurozone’s real Gross Domestic Product (GDP) growth is projected to gradually recover, driven by easing inflation and lower interest rates. However, Germany’s struggling manufacturing sector remains a drag on the region’s overall performance. The political instability in Germany and France represents another weakness, which could dampen investment growth in the Eurozone overall. Additionally, potential disruptions from U.S. trade policies under the current U.S. administration could lead to protectionism or higher tariffs, reducing demand for Eurozone exports, particularly in manufacturing, and further challenging trade-dependent economies such as Germany.
Inflation in the European Union (EU) is forecasted to stabilize at around 2% in 2025, aligning with the European Central Bank’s (ECB) target. The disinflationary trend is supported by stable energy prices and a normalization of supply chains after geopolitical shocks. However, wage growth and persistent service sector price pressures remain potential risks to sustained price stability. Additionally, U.S. economic policies, such as import barriers or fiscal stimulus under the Trump administration, could lead to global inflationary pressures or currency fluctuations, complicating the Eurozone’s efforts to maintain stable inflation.
External risks pose a major threat to the UK’s economic outlook, with heightened uncertainty surrounding President Trump’s new policies in his second presidential term. A potential hike in U.S. tariffs represents a key downside risk to the external sector, with the U.S. accounting for roughly 15% of the UK’s total exports. While the UK may avoid being directly targeted by these measures, its highly open economy is also exposed to the broader fallout of global protectionism, including slower global economic growth, disruptions to international supply chains and reduced global trade flows.
Due to the number of countries in the EU + UK region it is also a major importer of U.S. processed foods, ranking fourth as a region and totaling US$4.8 billion in 2024, growth of 13% from 2023, and a new record high.
Top U.S. exports of processed food products to EU-27 + UK in 2024 included:
According to Euromonitor, retail sales in the packaged food market in Western Europe had been estimated at US$788.1 billion in 2024. That represents growth of 32.8% and US$194.5 billion since 2020. That makes them the largest region in the world for packaged food. By the year 2029, the retail sales in the packaged food market in Western Europe is expected to reach just over US$1 trillion, growth of 29.4% or US$244.4 million from 2025.
High growth categories in the forecast include:
