According to data recorded by greenfield investment monitor fDi Markets, foreign direct investment in the food, tobacco and beverages sectors soared during 2017, enjoying their most successful year since the database’s records began in 2003.
Food and tobacco accounted for 86.4% of 2017 projects and beverages 13.6%. From 2013 to 2014, FDI into the sectors in terms of project numbers increased from 566 to 616, followed by a 11.9% drop to 543 projects in 2015. From 2015 onwards however, FDI into both sectors has increased rapidly. Project numbers increased to 615 in 2016, up 13.3% from the previous year. In 2017, a total of 684 projects were recorded, an additional 11.2% from 2016. Job creation has also climbed year-on-year since 2015, with 95,694 jobs created in 2015, 104,431 in 2016 and 106,499 in 2017, an overall increase of 11.3%. Capital investment also rose from $24.5bn in 2016 to $29.83bn in 2017, an increase of 19.6%.
The US was the leading destination for FDI in the food, tobacco and beverages sectors in 2017 with a total of 74 projects, followed by France (45) and the UK (36). The US attracted the highest level of capital investment with $3.31bn, followed by Russia and Mexico. The US also came out on top in terms of job creation, followed by Russia and China.
Notable projects include AB InBev’s planned $756m brewery in Apan, Mexico, which will create 1200 permanent jobs; NutriBiotech’s planned $100m investment to expand in Garland, Texas, creating 1600 jobs; and Zhongding Dairy Farming’s plans to construct new livestock complexes in Primorsky Krai, Russia, which will create about 2000 jobs.