Sector & service specialists

Food and drink is the largest manufacturing sector in the EU with a turnover of €1.1 trillion, employing 4.6 million people. In half of the EU’s 27 member states, it is the biggest manufacturing employer. FoodDrinkEurope is the dominant Brussels trade association, and the sector is highly regulated. Despite its scale, no food and drink company appears in the top 50 corporate Brussels spenders – the sector is dominated by SMEs, with relatively few large multinational spenders. 

The EU-Mercosur trade deal is the sector’s most consequential single development in years. Under the agreement, 99,000 tonnes of Mercosur beef can enter the EU with a reduced 7.5% tariff – capped at 1.5% of total EU annual beef production. Poultry is capped at 1.3%. Emergency brake mechanisms allow the Commission to suspend or limit imports if serious injury to EU sectors is caused. Almost immediately after provisional application began, the EU voted to suspend imports of Brazilian meat products from September 2026 due to concerns about antimicrobial growth promoters banned in the EU – signalling that enforcement of standards will be active rather than symbolic. 

US tariffs are a significant second-order concern. The two-way transatlantic agri-food trade is valued at €40 billion, and Europe’s food and drink industry has been closely watching the EU-US trade framework negotiations and their implications for food exports including wine, spirits, chocolate, and olive oil. The Commission’s Affordable Energy Action Plan is also directly relevant: energy costs affect food processing significantly, and the sector has been vocal about the competitive damage from high energy prices relative to US and Asian competitors. 

Regulatory complexity continues to increase. Food labelling, additives, novel foods, food contact materials, and sustainability disclosure requirements are all generating active dossiers. The Farm to Fork strategy’s sustainability ambitions – reduced pesticides, lower food waste, more plant-based consumption – remain policy objectives even as the political environment has shifted toward prioritising food security and competitiveness.