Entering the European market for table grapes

The European grape market is highly competitive and most of the supply is programmed by large retailers. New grape varieties can help you improve productivity and extend your season with high-quality grapes. Introducing new varieties will increase the level of competition and more efficiently fill in the gaps in the supply windows of producers from Peru, Chile, South Africa and India, which more often flood the market.

1. What requirements must table grapes comply with to be allowed on the European market?

Fresh table grapes must comply with the general requirements for fresh fruit and vegetables. You can find these in the general buyer requirements for fresh fruit and vegetables on the CBI market information platform. You can also use the Trade Helpdesk, which provides an overview of export requirements for fresh table grapes (HS code 08061010).

What are the mandatory requirements?

Pesticide residues and contaminants

Pesticide residues are one of the crucial issues for fruit and vegetable suppliers. This is especially relevant for grapes as they are directly consumed.

To avoid health and environmental damage, the European Union has set maximum residue levels (MRLs) for pesticides in and on food products. Products containing more pesticides than allowed will be withdrawn from the market. The same goes for contaminants such as heavy metals.

Note that buyers in several EU Member States, such as the United Kingdom, Germany, the Netherlands and Austria, use MRLs which are stricter than the MRLs provided for in European legislation.

Microbiological criteria

Food safety authorities can withdraw imported table grapes from the market or stop them from entering the European Union if salmonella, E. coli or other bacteria are present (Regulation No 2073/2005).

The European Food Safety Authority recommends good agricultural, hygiene and manufacturing practices to reduce contamination in grapes.

Phytosanitary regulation

As of September 2019, a new European Directive requires table grapes to go through health inspections before being entering or moving within the European Union.

Quality standard

For more information on quality, size, packaging and labelling requirements for table grapes, see the UNECE standards for TABLE GRAPES.

Table grapes must at least be:

• sound – produce must be free from rotting or deterioration likely to make it unfit for consumption;
• clean, practically free of any visible foreign matter;
• practically free from pests;
• practically free from damage caused by pests;
• free of abnormal external moisture;
• free of any foreign smell and taste;
• able to withstand transport and handling.

In addition, the grape berries must be:

• intact
• well formed
• normally developed.

Pigmentation due to sun is not a defect.

Europe almost exclusively requires Class I table grapes as a minimum. Berries must be firm, firmly attached and, if possible, have their bloom intact. Grapes in this class must be of good quality and within the following permissible imperfections:

• a slight defect in shape;
• slight defects in colouring;
• very slight sun burn affecting the skin only;
• a tolerance of 10% is allowed for fruit that meets Class II standards;
• a maximum of 10% of berries detached from the bunch.

In no case may the defects affect the fruit flesh, the general appearance of the produce, the quality, the keeping quality and the presentation in the package.

Maturity

Table grapes must be sufficiently developed and display satisfactory maturity and ripeness. Therefore the grapes must have reached at least 16° Brix. Fruit with a lower index are accepted if the sugar-acid ratio is at least equal to:

• 20:1 if the Brix level is greater than or equal to 12.5° and smaller than 14° Brix.
• 18:1 if the Brix level is greater than or equal to 14° and smaller than 16° Brix.

Size and packaging

Size is determined by the weight of the bunch. The minimum bunch weight is 75 g, but it does not apply to packages intended for single servings. There is a tolerance of 10% on bunches not meeting size requirements. In each sales package, one bunch weighing less than 75 g is allowed to adjust the weight.

The contents of each package must be uniform and contain only bunches of the same origin, variety, quality and degree of ripeness. However, a mixture of table grapes of distinctly different varieties may be packed together in a package, provided they are uniform in quality and, for each variety concerned, in origin.

Common packaging include:

• Clamshells or punnets with heat-seal or flow pack, various sizes, for example, 10x500 g or 18x250 g in a box;
• Bag-in-box between 4.5 kg and 9kg;
• Carry bags with grape bunches between 4.5 kg and 9 kg.

What additional requirements do buyers often have?

Variety

Europe’s table grape market is large and there are many varieties which you can export. The choice of variety depends on several criteria:

• the presence of seeds
• shape and colour
• skin thickness
• maturity period
• resistance against diseases and pests
• transportability
• storage period

With early, mid-season and late varieties you will be able to cover a large season. The rest is a combination of finding the right, sweet taste and cost-competitive grape cultivar.

There can be regional differences in grape preference. In northern Europe, mature seedless white grapes with thin skin and sweet taste are most preferred. Seedless grape consumption was developed later in southern Europe and berry size is sometimes of more importance in countries such as Italy.

Certification

Common certifications for blueberries include GlobalG.A.P. for good agricultural practices and BRCGS, IFS or similar HACCP-based food safety management systems for packing and processing facilities. Management systems recognised by the Global Food Safety Initiative (GFSI) are most recommended.

Sustainability and social compliance

Complying with sustainable and social standards has become common for all fresh fruit and vegetables. Besides GlobalG.A.P. to ensure good agricultural practices, a social certificate such as Sedex Members Ethical Trade Audit (SMETA) is highly recommended to get your product up to retail standards.

Retailers can also impose their individual standards, such as Tesco Nurture. Especially larger retail chains in northern Europe are more prepared to buy your product if you comply with social and sustainability standards.

What are the requirements for niche markets?

Organic certification can increase the value of your table grapes

Organic certification can be an interesting way of setting your table grapes apart and marketing them at higher prices. The demand for organic table grapes is growing, although it is mainly supplied from within Europe. For non-European suppliers, it is important comply with European legislation. You must use sustainable and organic production methods and apply for an organic certificate from an accredited certifier.

Some specialised organic buyers work with table grapes, such as OTC Organics and Eosta (the Netherlands).

2. Through what channels can you get table grapes on the European market?

The main channel for table grapes in Europe is supplying to retail chains, which requires high volumes of almost exclusively Class I grapes or higher. You can best reach this sales channel with the help of grape importers and service providers that supply to those retailers. Your offer will be most interesting to them when you are able to extend your season with appealing grape varieties.

How is the end market segmented?

The most common market segment for table grapes are consumer packed, Class I grape bunches. Most of these grapes are seedless and sold under private label. There is no exact data available on varieties, but you can expect the majority of the grape consumption to be white or green grapes, followed by red grapes and in much smaller volumes blue or black grapes.

The grape sector is large enough to offer opportunities for differentiation, for example by supplying certified organic grapes or special aromatic varieties, such as Sable Seedless and Cotton Candy grapes. You can also add value by branding a product high-quality, but this takes a lot of promotion in your target market.

On the low end of the market you will find less popular and older grape varieties that are not in favour anymore with the large retailers. These include seeded and unpacked grapes, often from local origin, and mostly sold in traditional grape countries, such as Italy, but also in eastern European countries.

Figure 1: Market segments for table grapes in Europe

Through what channels do table grapes reach the end market?

Importers and service providers

Importers have a central role in the distribution of table grapes. They are familiar with all the different requirements of end clients and are able to distribute to different markets.

Table grape specialist importers are well integrated with grape producers, which makes them attractive service providers to large retailers. By sourcing grapes from different regions they assure their clients have a year-round grape supply. Some of these companies have their own packing stations, although most of the packaging takes place at origin. When they do provide different services, such as retail packing and multiple origin sourcing, they can become service providers to large retailers.

Some of these companies include large integrated fresh suppliers, such as Greenyard, which have their own procurement offices in producing countries. But there are also companies more specialised in table grapes, such as Grapes Direct in the United Kingdom.

Fresh grapes for processing, for example, for salads and mixed fruit packers, can be supplied by importers as well. But this is a small segment compared to the direct fresh consumption.

Supermarket programmes

Most table grapes are sold through supermarkets. Grapes are a typical product that is programmed under supply contracts and marketed as a private label product.

Many supermarkets select external service providers to supply them with table grapes for a contracted period or programme. Some work with annual contracts, while others select an exclusive service provider such as German discounter Lidl has done with OGL Food Trade.

In large volume fruit categories, which is the case of table grapes, retailers get much more involved in sourcing and sometimes look for direct trade in origin countries. By direct sourcing grapes, these retailers improve cost efficiency and control the supply chain with maximum transparency. However, only large producers will qualify to directly supply to a supermarket chain and most likely they will still have a service provider to assist the retailer with import and logistics.

Wholesalers (spot market)

Although table grapes are largely traded on a contract basis, this trade still needs a spot market, which helps with regulating supply shortages and oversupply, and services small outlets as well.

Traditional fruit wholesalers cover the spot market and move with the fluctuations of the trade. They supply to specialised shops, street merchants, restaurants and hotel chains. Sometimes import and wholesale activities are combined, but a traditional wholesaler does not take many risks with importing long-distance table grapes. Typical wholesale markets for table grapes and other fruit include Rungis in Paris and Mercabarna in Barcelona.

Non-specialised (cash & carry) wholesalers, such as Metro, supply to the same food service end markets, but they are able to work with long-term contracts, just like supermarkets. Metro Cash & Carry, for example, has its own Valencia Trading Office (VTO) to source table grapes in Spain and from international producers.

Figure 2: Market channels for fresh table grapes

What is the most interesting channel for you?

The most interesting channel to aim for depends largely on the size and structure of your company. The higher your production volume and the longer your supply season, the more interesting you become to large buyers that have programmed supply or direct sourcing deals with supermarkets. You will have to accept all the specific requirements of supermarkets to trade with them, without making concessions or negotiating rules. Either way, being closely connected with the primary production is key.

When your production is not as large, you can either look for cooperation with other producers and look for mutual benefits in size and season, or you can build commercial relations with traders and established importers. For example, Greencell (United Kingdom) and Direct Source International (Netherlands) source grapes from many different origin countries, while full-service providers, like Kölla (Switzerland), have multiple sales and purchase offices throughout Europe. They will do the quality checks and make sure the table grapes find the right end market.

There are many importers and traders that can represent your product in the European market. This can be tricky because you depend on the performance and network of your buyer. Grapes are often traded on commission, therefore it is important to check if your importer has a wide network to market your product, preferably having supply contracts with retailers in place.

3. What competition do you face on the European table grape market?

In table grapes you will encounter competition from both local producers in Europe as well as non-European suppliers, depending on the season. Developments in grape varieties can have great influence on competitive strength but also increases global yields and closes gaps in the grape calendar. Exporting more grapes to an established market, such as Europe, often puts extra pressure on prices, so it helps to have other export markets outside Europe, including a domestic market.

Where are your competitors located?

Table grapes in Europe is a very competitive market. Italy and Spain are the main supplying countries of table grapes to EU markets in the European season. Your main counter seasonal competitors will be producers in South Africa and Chile, as well as increasing supply volumes from Peru and India.

Figure 4: Indicative supply calendar of table grapes to Europe

Italy and Spain

Europe’s table grape production is estimated at 1.6 million tonnes. Italy, Spain and Greece account for most of it. In the European grape season, Italy and Spain are your main competitors. They have a local advantage and as long as their supply is abundant and competitive, especially during their peak in August and September, it will be difficult to be in the market at the same time (see supply calendar in figure 4). On the other hand, European production of table grapes is becoming expensive and competition from nearby regions, such as Egypt and Morocco, is increasing.

Italy is the main supplier to the EU market, but according to industry sources, Spain has recently advanced with investment and development of seedless grape varieties. The prevalence of small growers in Italy make the transition to seedless more complicated. Several professional Italian growers are joining the seedless trend, but seedless supply only accounts for 30%–35% of Italy’s output, mostly cultivated in Puglia. Italian growers also look for late varieties to extend their season.

Spain’s production season of table grapes reached 266 thousand tonnes in 2017, while the Italian production is much higher: approximately 1 million tonnes, but declining.

In the export trade, Spanish grapes are 30% more expensive per kilo than Italian grapes. While Italian growers compete with low-priced grapes, Spanish producers focus on exporting seedless grapes, which should be your aim, too, as a foreign supplier.

Italy’s strength, in addition to volume, is the large area of organic grape cultivation. According to FiBL Statistics, Italy had 2,177 hectares of organic table grapes in 2017; Spain had 368 hectares. Altogether, these fields can yield tens of thousands tonnes of organic table grapes.

South Africa

The South African supply to Europe again passed 200 thousand tonnes in 2018, as it did in in 2015 and 2017 (see figure 3). Europe is South Africa’s main export market, in particular the United Kingdom, where nearly a quarter of all South African exported grapes go to. Still, most of South Africa’s grape exports go to the Netherlands, then on different European destinations.

South Africa is a preferred supplying country because of its producers’ long experience in grape production and their large volume of seedless white and red grapes. South Africa’s grape production is expanding, having reached an estimated 315 thousand tonnes of table grapes in 2018-2019, produced from mid-November to mid-April. Approximately 5,400 hectares are younger than three years old. Newly planted high-yielding varieties will keep South African table grapes competitive for many years to come.

Increased production from new vineyards can occasionally result in overproduction, which invariably affects prices for all suppliers that share the same supply season as South Africa. But, when European importers start to rely too much on the South African supply, a negative weather factor, such as drought, can increase the need for importers to find alternative supply sources. For table grape exporters, the annual South African harvest is something to take into account when planning to export to Europe.

Peru

Peru is a relative newcomer in the international grape market. Peru’s grape production increased rapidly to reach 340 thousand tonnes in the 2018-2019 harvest, growing 20% from the previous season, according to Peruvian authorities. The Foreign Agricultural Service of the United States Department of Agriculture indicates that Peru has a much larger production: 658 thousand tonnes. This growth was achieved thanks to larger planting areas and conversion to better varieties.

The seeded Red Globe used to be dominant in Peruvian cultivation, but growers have been updating their vineyards with several popular seedless varieties. Large volumes and popular varieties have turned Peru into a strong counter seasonal supplier to Europe.

Thanks to two different growing regions, Peru has an extensive supply season. Strong growth in the northern Piura region is helping Peruvian growers enter strong in the supply window between September and November. The main hazard in the north are the effects of El Niño, which can ease the expected volumes. The southern supply from the Ica region follows at the end of November up to February and with smaller shipments towards the end of the season until April.

Peru has no other option than to export the table grapes because the local market opportunities are very limited. However, Peruvian grape volumes have grown so large that at peak supply, they affect the exporting potential and profitability of suppliers, not only in Peru, but also in Brazil, Chile and South Africa.

In 2018, Europe became more important to Peruvian exporters because the United States was not able to absorb all of the Peruvian surplus. Peru’s grape supply to Europe suddenly increased by almost 70% in one year to reach 93 thousand tonnes.

Chile

Chile is a traditional grape exporter and one of the largest in the world. With 112 thousand tonnes, they were the second non-EU supplier to Europe in 2018, even if the United States remains the most important market for Chile’s grape exports.

Despite Chilean producers’ long experience, Chile’s grape production volumes are declining, and so are exports, partly due to varietal transitions, but also due to water and labour shortages. Water and labour costs will be major issues for the Chilean grape sector’s future.

The main season for Chile runs from January to May. Most of Chile’s grape exports to Europe ship at the end of the Chilean season, because there are still large overlapping supplies available from Peru and South Africa in the first months of the year.

Chile’s reputation in table grapes will keep competitors at a distance, but due to increasing production costs and declining production volume, new opportunities will arise for table grape growers from other countries.

India

European grape imports from India have been rising for several years in a row. India’s grape supplies have had problems in the past due to traces of chemical residues, but that has since completely changed and India has become a very competitive grape exporting country.

India has a great advantage of having a huge grape production in combination with significant domestic consumption. Indian growers can switch between exporting when it is more opportunistic and falling back on the internal demand. This is a big plus that South Africa, Chile and Peru do not enjoy. Moreover, India can also compete quite well with low prices.

European buyers mainly source white seedless grapes from India and also often turn to India when Chile and South Africa do not meet the required volumes or price-quality combination. The 88 thousand tonnes of grapes from India imported into Europe in 2018 can easily increase if Indian growers can maintain the quality of their seedless grapes.

Who are your competitors?

The grape market is highly competitive, so you must find or create your competitive advantage. This includes diversifying export markets, products or grape varieties, or working together with other grape cultivators to extend your seasons and supply volume. The following companies employ these and other practices.

Fruitsland

Italy’s Fruitsland has a highly diversified offer of table grape varieties from July to December. This is an innovative company that has invested in marketing as well, including promoting the technology and production methods they use on a modern website.

Good presentation and an attractive product assortment are essential for any company in the European market. But it is the promotion of your unique selling points that makes you stand out.

Fruitsland’s self-presentation as an innovative and diverse grape grower is definitely a strength which supports their expanded network throughout Europe.

The Grape Company

One large grape exporter from South Africa is The Grape Company. It is actually a group of affiliated growers covering the entire South African growing season. The Grape Company is socially engaged and focuses on quality. Approximately 90% of their production consists of seedless grapes and all of their growers are certified with GlobalG.A.P., Sedex and Tesco Nurture, which make The Grape Company a very suitable partner for European importers. For example, one of the leading fresh produce companies in the world, TotalProduce, buys grapes from The Grape Company, which shows how important primary production is for large buyers.

Verfrut

Verfrut is a Chilean fruit company. As producers in neighbouring Peru quickly ramped up grape cultivation, Verfrut decided to integrate an orchard in Peru, which extended their supply season by several months before the Chilean harvest. In terms of joining supply programmes of large European retailers, such as Tesco, this arrangement is a good option to ensure reliable supply.

Companies like Verfrut do not rely exclusively on a few markets, which makes them more resilient to market fluctuations. According to Verfrut’s website, only 18% of their grapes are destined for Europe, while most of their production goes to the United States, Russia, China and several other markets.

Which products are you competing with?

Grapes can best be compared with other fruits that are easy to snack on, such as berries or fresh cut tropical fruit. These are the fruits that are most likely to be used as an alternative for grapes. However, table grapes are a main category fruit. High availability and affordable prices will keep plenty of grapes on supermarket shelves.

The most notable substitute for table grapes are actually other table grapes from improved and mostly seedless varieties. Interest in seedless and superior taste provides opportunities to diversify your table grape supply.

4. What are the prices for table grapes?

Average prices for table grapes have been relatively stable over the past years in Europe; the main fluctuations are caused by product availability. Wholesale prices vary normally between a little under €2/kg and just above €3/kg. If you work with an importing company or trader, expect to pay them approximately 8% commission plus handling costs.

Retail prices are usually between €4/kg and €6/kg. Retail promotions can push prices below these averages, while premium and organic grapes can fetch significant higher prices. Be aware that retail prices have no relation with trade prices.

This study has been carried out on behalf of CBI by ICI Business.

Please review our market information disclaimer.