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Country Commercial Guides
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CHAPTER V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS
A. Best Prospects for Non-agricultural Goods and Services
1. Computers and Peripherals (CPT)
The total market for computer technology in Greece is estimated at $4.7 million in 1998 with annual growth rate of 25 percent. Industry experts forecast continued growth in this market as public-sector entities begin a long overdue computerization program using $500 million in European Union funds, and private sector companies continue to feed their hunger for cutting edge information technology solutions.
An array of other opportunities will develop over the next several years as Greece shifts to the use of the common European currency, girds to solve the "year 2000 problem," and most urgently, upgrades its information infrastructure to host the Athens 2004 Olympic Games.
U.S. firms are well positioned to exploit these opportunities and dominate the market. American companies already account for almost 65 percent of the market for information technology products in Greece. U.S.-made PCs, servers, printers, networking products, and software enjoy an excellent reputation for their performance, quality and technological superiority. Industry watchers estimate that imports from the U.S. will continue to grow over the next three years at a real rate of 19-25 percent.
The main competitors of American companies are European companies, including Bull (France), Philips (Netherlands), and Siemens-Nixdorf (Germany). Two Greek assembly companies, Altec and Quest, cover a significant portion of the market.
(US $ Millions)
1997 1998 1999 A. Total Market Size 626.0 857.0 1054.0 B. Total Local Production 252.0 353.0 436.0 C. Total Exports 30.0 33.0 39.0 D. Total Imports 344.0 471.0 579.0 E. Imports from the U.S. 223.0 306.0 376.0The above statistics are unofficial estimates.
2. Medical Equipment (MED)
The Greek market for medical equipment and supplies is dominated by imports. Imports supply approximately 90 percent of the Greek market, mainly from Germany (21%), the U.S. (17.6%), Italy (14%) and the Netherlands (7.8%).
Imports in 1997 were approximately $438.4 million and are estimated to increase to $473 million in 1998 with a real growth rate 8-10% annually over the next three years.
Local production of medical equipment is limited. Several small to medium-sized factories supply hospitals with furniture, inexpensive manual wheel chairs, bandages, gauze, and other rudimentary hospital supplies. Only one dynamic Greek company manufactures high-technology medical equipment, such as artificial kidney equipment and hemodialysis equipment.
It is anticipated that the total market for medical equipment and supplies will grow over the next three years at a real rate of 10 percent per annum. This projection is based on an ambitious program announced by the Ministry of Health for the establishment of new hospitals, and on the need for modernizing most existing facilities.
There is an increasingly strong demand for advanced and sophisticated medical equipment for which U.S. manufacturers enjoy an excellent reputation. As a result, imports from the U.S. have increased from $11 million in 1989 to $63.2 million in 1997.
Medical equipment consumption is concentrated mainly in the public sector, which accounts for 65-70 percent of total value of purchases of medical equipment and supplies. U.S. suppliers should be aware that agents and distributors of medical equipment sometimes experience long delays in payment from state-owned hospitals. These delays are generally covered by the local business partners.
The Greek government has received approximately $1.6 billion from the EU Delors Package II for medical projects. The funds will go toward the construction of new hospitals, the expansion and modernization of existing ones, and the purchase of medical equipment. The steady increase in number and quality of private clinics will also play a substantial role in the increase of imports of technologically advanced equipment.
Most promising subsectors are in surgical appliances and supplies, surgical/medical instruments, and electro-medical equipment.
(US $ Millions) 1998 1999 2000 A. Total Market Size 473.0 521.0 564.66 B. Total Local Production 11.6 11.7 11.8 C. Total Exports 10.1 10.2 10.3 D. Total Imports 475.3 520.0 563.16 E. Imports From the U.S. 68.0 75.0 81The above statistics are unofficial estimates.
3. Building Products (BLD)
In September 1997, the International Olympic Committee (IOC) announced that Athens would have the honor of hosting the 2004 Summer Olympic Games. While observers agree that it is likely that most major contracts for Olympics-related works will go to Greek firms, major subcontracting opportunities will definitely develop for American firms.
In addition, interest of the Greek population in the ownership of real estate continues to drive the construction of new buildings and the renovation and expansion of existing structures. As a result, it is anticipated that the market in this sector will increase in real terms by 10-15 percent annually over the next three years. The private sector and the Greek government are also trying to modernize existing houses, commercial buildings, hospitals, airports and ports.
The Greek government has also announced a number of priority infrastructure projects, which have an estimated cost of $8 billion, that are expected to be completed by 1999.
The "do-it-yourself" market is also a growing market in Greece.
Although there is extensive local production and heavy competition from the EU-suppliers, U.S. products enjoy excellent reputation for their quality and durability. Italian, German and French manufacturers of building products have a predominant presence in this market. U.S. companies are represented through local firms that act as agents, distributors and importers. Most European companies have established joint-ventures with local businessmen or are in the process of establishing wholly-owned subsidiaries.
Glazed ceramic flags and pavings, hearth or wall tiles, sawn or chipped, sliced or peeled wood, painters fillings and faucets, indoor walls and floors are among the most promising products to be imported to Greece.
Greece requests an ISO certificate as well as EU certificates for building products/equipment. U.S. companies need to have such certificates to enter the Greek market.
(US $ Millions) 1998 1999 2000 A. Total Market Size 4,865 5,295 5,734 B. Total Local Production 3,567 3,853 4,161 C. Total Exports 18 19 20 D. Total Imports 1,316 1,461 1,592 E. Imports from the U.S. 61 68 76The above statistics are unofficial estimates.
4. Telecommunication Services (TES)
The deregulation of the telecommunications market that has been mandated by the EU will not take effect in Greece until 2001 because of a special exemption. Value-added services are no longer under the state run monopoly.
The Hellenic Telecommunications Organization (OTE), Greece's state-owned telephone service provider, has undertaken a massive program of service expansion and upgrading in order to compete after deregulation. OTE's multi-million dollar modernization program foresees the upgrade of its telecommunications network, including the addition of value-added services such as cellular telephony, data communication, paging, cable TV, satellite communications, and internet services.
The Greek cellular telephony market is a huge success story. Deregulated in 1992, the market continues to boom. The two private cellular telephony providers, PANAFON (52%) and TELESTET (33%), have close to 1,500,000 subscribers. In the spring of 1998 OTE's subsidiary, COSMOTE (15%), finally introduced its mobile telephony service, which uses DCS 1800 technology. The three companies have invested a total of close to $1 billion already and are continuing to invest.
Following is a list of telecom services with excellent market potential:
Leased circuits for the transmission of data, voice, and video, security systems links, and other applications in the banking, insurance, and services sector.
- Wireless communications systems and DECT technology products.
- VSATs (very small aperture terminals) that are used primarily for remote areas communications via satellite. Hotels, plants, multi-national or national company outlets are the best customers for VSAT services.
- Transportable TV signal transmission stations.
- Fast public switched data networks.
- ISDN high-speed digital networks.
- Paging systems compatible with the HERMES pan-European paging system.
- Videotex for graphic display applications and video conference applications.
- Marine communications via satellite.
- New cellular telephony applications in GSM environment.
(US $ Millions) 1997 1998 1999 A. Total Market Size 1,010.0 1,130.0 1,729.0 B. Total Local Production 808.0 877.2 1,394.4 C. Total Exports 0.2 2.6 3.4 D. Total Imports 200.0 260.0 338.0 E. Imports from the U.S. 20.0 39.0 50.9The above statistics are unofficial estimates.
5. Commercial and Residential Air Conditioning and Refrigeration (ACR)
It is anticipated that the market in this sector, now estimated at $245 million, will increase in real terms by 8-10 percent annually over the next three years. Adding to the opportunities in the private sector is a huge Greek government infrastructure program that includes the installation or upgrading of air conditioning systems in facilities around the country. Facilities targeted for construction or improvement include major airports, subways, hospitals, and government buildings. Experts believe that the U.S. share of this market, now valued at around $11.0 million, could grow as much as 10 percent per year. Some trade sources put the U.S. share of the ACR higher than official statistics, near $36.0 million.
In general, imports supply about 90 percent of the market, mainly from the Far East, the European Union (EU), and the United States. Commercial and residential air conditioning and refrigeration equipment (ACR) accounts for about 55 percent of these imports. Local production has increased and supplies mainly air handling units, fan coils, and chillers, designed for small and medium-size industrial and commercial firms.
The refrigeration portion of the domestic air-conditioning and refrigeration market is currently being strengthened by countless modernization projects. Applications for new projects involving cold storage rooms, freezing tunnels and other refrigeration systems and equipment have reached $40.0 million in the first quarter of 1997. The Greek government is also trying to install and/or upgrade the cooling chamber, freezing tunnels, and food storage equipment used by agribusiness cooperatives to assist them in competing in the European market. The refrigeration portion of the domestic market will also be strengthened by future modernization projects and by the replacement, due to heightened environmental concerns, of old equipment.
There are around 15-20 ACR manufacturers in Greece, out of which five are major companies. There are 50-60 which are medium size companies dealing with imports. Twelve companies deal with refrigeration equipment.
There are no restrictions on the importation of air conditioning and refrigeration equipment from the U.S., nor are there any non-tariff barriers affecting their imports. However, all imported ACR equipment needs the CE mark and certificate.
There are three U.S. subsidiaries of ACR equipment producers in Greece: Carrier Hellas, Trane Hellas, and Lennox - D. Daskalopoulos. Although most of the major foreign air conditioning firms are represented in Greece, U.S. manufacturers of ACR equipment can still find capable distributors interested in selling products new to the market. U.S. air conditioning companies are known in Greece for the high quality, durability and low maintenance costs of their products.
Very good sales prospects exist for products under Harmonized System (HS) codes 84.14.90.90, 84.15.82.90, 84.18.60.90, 84.18.61.90, 84.18.99.80, and 84.15.90.90, including machinery and equipment for cooling chambers, compressors, condensing units, water chillers, air coolers, and packaged units.
(US $ Millions) 1997 1998 1999 A. Total Market Size 226.0 245.0 258.0 B. Total Local Production 21.0 24.0 25.5 C. Total Exports 22.0 22.0 23.5 D. Total Imports 227.0 247.0 250.0 E. Imports from the U.S. 11.0 11.0 12.5The above statistics are unofficial estimates.
6. Franchising (FRA)
The system of franchising was first applied in Greece in the mid 1970's, but the rapid growth it is presently experiencing did not start until the early 1990's. While there are several successful franchise systems operating in Greece, there is room for many more and some industries are still practically untapped.
"Quick service eating outlets" is the area with the highest concentration of franchise systems operating in Greece. Many of the key players, like McDonald's, Pizza Hut, and Dunkin Donuts, are active, but as changing lifestyles allow less and less time for meal preparation at home, new opportunities are appearing. Clothing, houseware, giftware, and a broad range of services such as computer training are other areas where franchise systems are proving successful in taking over from traditional independent outlets. In the services sector franchising is doing very well and there are great opportunities with concepts for children, i.e. Computer trainning, teaching languages etc.
Greece has a large and dynamic middle class that can provide in abundance two of the basic elements for the success of franchising: ambitious prospective businessmen to become franchisees, and clients to frequent the new businesses. Forty percent of Greece's population lives in or around Athens. Most businesses are concentrated in that area and in a few other major cities like Thessaloniki, Patras, Larisa, and Heraklion. During the summer, more than 10 million tourists visit Greece, presenting an excellent market for some franchise businesses.
The Franchise Association of Greece plans to develop some statistics on the activity of its members but nothing is available now.
7. Residential Natural Gas Equipment and Accessories (OGM)
Residential Natural Gas Equipment and Accessories (RNGE) at present is an undeveloped sector in Greece despite its considerable potential. However, the sector is attracting more and more attention, heating and cooking units getting the most notice.
Even though no more than 8,500 end-users are now served with natural gas, rapid development is foreseen over the next eight to ten years. Eventually around 500,000 homes will use natural gas for heating, out of which over 400,000 will also use natural gas for water heating and cooking in Greece. Refrigerators using natural gas have also good opportunities in this new market.
In accordance with two Presidential Decrees, issued in 1987 and 1988, builders must provide natural gas facilities for heating, hot water, and cooking in all new houses, as well as in commercial and industrial buildings, built in the Attica, Viotia, Thessaloniki, Larissa, and Volos areas.
In addition, Greek policy concerning the acquisition of new RNGE units is contained in a number of laws that permit a tax exemption of 75 percent of the cost of new residential natural gas burning equipment.
Imports of natural gas heating equipment and accessories are minimal, the data available from the Greek National Statistical Service for 1997 and previous years include only imports and exports of city gas and liquefied petroleum gas (LPG) distribution equipment, instruments, and household appliances. According to this data the total Greek market for residential gas equipment is estimated at $35 million for 1997. Imports supply approximately 85% of the heating generators and 90% of the cooking equipment market. Apart from a small percentage of LPG/city gas stoves, no household appliances using city gas, gas burners, and water heaters are manufactured in Greece. The size of the market for RNGE equipment is estimated to reach $110 million by 2002 with the completion of the medium pressure, and the development of the low pressure, natural gas distribution networks in Attiki, Thessaloniki, and Larissa/Volos regions.
According to industry data, the U.S. share of the market for residential gas burning equipment was estimated at around 3.0 percent in 1997. It is estimated that over the next five years the U.S. market share will grow at a real rate of 8 percent per annum because of the interest in RNGE expressed by Greek companies in the sector in representing U.S. manufacturers. This data does not include RNGE equipment and parts produced by European subsidiaries of U.S. firms.
There are no restrictions on the importation of RNGE equipment and parts from the United States nor are there any non-tariff barriers affecting their import. Although most of the major foreign RNGE equipment manufacturers are represented in Greece, U.S. firms can still find capable importers and distributors interested in selling products that are new to the market. U.S. RNGE equipment, products, and parts are known in Greece for their high quality and durability.
Very good sales prospects exist for products under Harmonized System (HS) codes 84.03.10.00, 85.16.60.00, 84.18.21.00 including gas heating generators and burners, kitchen stoves, water heaters and refrigerators.
In addition, joint venture or licensing arrangements for the local production of RNGE accessories and parts have excellent sales and prospects.
(US $ Millions) 1997 1998 1999 A. Total Market Size 35.0 46.0 53.0 B. Total Local Production 4.0 5.0 5.5 C. Total Exports 1.0 1.0 1.5 D. Total Imports 32.0 39.0 49.0 E. Imports from the U.S. 1.0 1.1 1.5The above statistics are unofficial estimates.
8. Food Processing and Packaging Machinery and Equipment (FPP)
The Greek food industry is very dynamic and profitable, and the food processing industry and packaging industry is one of the most important sectors of Greek industrial activity. In total, it accounts for about 20 percent of total manufacturing activity in Greece.
According to industry sources, there are about 10,000 food processing units and 700 beverage units. These units employ about 100,000 workers or approximately 17 percent of the total industrial workforce. Fruit and vegetable canning and processing entities as well as bakeries are the sector's largest employers, followed by sugar and confectionery, beverage, and meat processing. This sector processes about 70 percent of Greece's agricultural production. The largest concentration of food processing units are in Macedonia, Thessalia, Crete, and the Peloponese.
The Greek market for food processing and packaging machinery and equipment is estimated by industry experts to be around $221.1 million in 1998. The Greek market is dominated by imports, which cover about 83 percent of the total market. Over 65 percent of the imported machinery and equipment is Italian or German. Greek manufacturers hold a 20 percent share of the market, with domestic production limited to simple equipment. There are no official equipment production statistics available.
The U.S. market share was around 6.6 percent in 1998 and, based on projections by market sources, is expected to grow over the next three years at a real rate of 10-12 percent. This market share does not include equipment imported from European subsidiaries of U.S. firms. The principal equipment imported from the U.S. continue to be machinery for processing fruits and vegetables.
U.S. food processing and packaging machinery and equipment has an excellent reputation for quality and durability. U.S. manufacturers operate in Greece mainly through local agents and importers.
There are no restrictions on imports of food packaging machinery and equipment, nor any non-tariff barriers affecting imports from the U.S.
Prospects are good in all of the food-beverage processing and packaging machinery and equipment sector. The best sales opportunities are in: bakery, pastry and pasta equipment; fruit and vegetable processing, freezing and canning; juice extraction and canning; food filling, sealing, capping, wrapping machinery; meat processing equipment; fish canning; processing-packaging of snacks; and soft drink bottling lines. In addition, joint venture/licensing arrangements, and local assembly/production of equipment have excellent sales prospects.
1997 1998 1999 A. Total Market Size 197.7 221.1 247.3 B. Total Local Production 39.5 43.8 48.6 C. Total Exports 6.8 7.5 8.2 D. Total Imports 165.0 184.8 206.9 E. Imports from the U.S. 13.2 14.7 16.4The above statistics are unofficial estimates.
9. Defense Products (DEF)
Almost every ten years the government of Greece implements a major multi-million dollar purchase plan that aims to modernize the Greek Armed Forces. For the period 1998-2004 the Ministry of Defense (MOD) has been allocated $16 billion.
The Greek Armed Forces have released a very long list of goods that it hopes to purchase within the next two years and pay for within the next decade. The list of purchases that MOD is currently considering, is discussing with suppliers, or has at the evaluation stage follows:
Air Force:
Medium-sized transport aircraft
AmmunitionArmy:
The purchase of 250 new tanks;
Purchase of four more Apache helicopters;
Purchase of six M577 track vehicles;
Purchase of 80 M901A1 tow vehicles; and
Hawk missile upgrade;Navy:
Upgrade of Glafkos-type submarines and purchase of new sub batteries;
Purchase two landing craft air cushioned (LCAC) hovercraft;
Purchase of new frigates;Competition for many of these contracts will be stiff. Industry sources report that the French, German, Russian, and other European Governments have already been strongly promoting their industries and push their products through strong political pressure. Market analysts insist that defense companies proposing purchases to MOD should include in their package very favorable financing terms, including advantageous rates and deferred interest.
(US $ Millions) 1997 1998 1999 A. Total Market Size 390.0 470.0 564.0 B. Total Local Production 60.0 70.0 84.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 351.0 423.0 507.6 E. Imports from the U.S. 210.6 253.8 304.5The above statistics are unofficial estimates.
B. Best Prospects for Agricultural Products
1. Nursery Products
The yearly demand for plant material (floricultural and ornamental) in Greece, is estimated at $214 million and is expected to double over the next five years as public and private landscaping projects increases and Athens prepares for the 2004 Olympic Games. Expanded landscape activity is expected at all levels from home gardens to large public developments including re-landscaping existing buildings, land rehabilitation, soil stabilization and highway beautification projects. The U.S. share in the import market is currently estimated at approx. 0.15% for all nursery products, excluding cut flowers. In the next 5 years public works projects are expected to create demand for 95-100 million shrubs and trees suitable for public space landscaping, valued roughly $90 million, in addition to several new waste disposal sites which will need 60 to 65 million plants for landscape rehabilitation. Floricultural products (cut flowers and flowers in pots for interiors and outdoors) are also a fast growing market.
The EU accounts for over 90% of current imports. Domestic nurseries presently account for nearly 85% of all plant propagation material including arboricultural nursery products. By 2004 the domestic production is expected to be able to meet only 8-10% of total demand.
The potential for U.S. products, technology and investment in the Greek nursery sector is high. The most accessible market is for seeds (flowers, grass, environmental grasses for erosion control, wild flower seed mixtures), various propagation material, bulbs, grafting material and numerous species in pots.
(US $ Millions) 1998 1999 2000 Total Market Size(Domest Demand) 214 234 260 Total Local Production 152 150 152 Total Exports 2 1 2 Total Imports 64 85 108 Imports from the U.S. 0 0 1The above statistics are unofficial estimates
2. Planting Seeds
The Greek seed market includes crops like cotton, corn, wheat, sugar beets, alfalfa, industrial tomato and vegetables for immediate fresh consumption. The value of the field crop seed market is estimated at just over $100 million (value at retail price level paid by farmers), while the vegetable seed market is estimated at $30 million. Greece fully complies with EU regulations concerning the implementation of phytosanitary procedures and registration of genetics to the EU catalog. U.S. wheat seed, although preferred by a number of farmers and importers is not imported from the U.S. due to karnal bunt restrictions imposed by the GOG. GMO seeds face difficulties in the GOG's approval procedures. U.S. exporters should continue to target the traditional market for field seed imports, particularly those of corn hybrids, alfalfa, cotton seed, vegetables. U.S. exporters should explore the potential markets GMO seeds as well as other high value certified seeds (i.e., environmental grass seeds, hybrid vegetable seeds, forage plant seeds and other genetics not produced domestically, like strawberry seedlings and various cuttings).
(US $ Millions) 1998 1999 2000 Total Market Size 135 137 138 Total Local Production 37 40 40 Total Exports 0 0 0 Total Imports 98 98 99 Imports from the U.S. 29 29 30The above statistics are unofficial estimates
3. Frozen Fish and Seafood Products
Frozen fish consumption in Greece has increased 15% in the last few years, but at 24 kg per capita, is still relatively low compared to other European countries. Steady improvements in living standards coupled with the recent changes in consumption patterns towards healthier food have helped fuel this increase in demand for fish, especially frozen fish, which is cheaper than fresh fish, to a total market of 230,000 MT. The majority of frozen seafood is sold packed, with fillets and codfish being preferred. The main U.S. competitors are the EU and African countries as well as some local fish farms. Greece is one of the largest importers of U.S. frozen squid, although recent low squid supplies in the U.S. affected Greek imports. Salmon consumption and imports show an upward trend, although still at low levels. CY-1997 imports were 600 MT, (106 MT of U.S. origin), compared to 241 MT in 1996.
(US $ Millions) 1998 1999 2000 Total Market Size 150 155 158 Total Local Production 15 16 16 Total Exports 0 0 0 Total Imports 135 139 142 Imports from the U.S. 7 8 8The above statistics are unofficial estimates
4. Tree Nuts
Consumption trends in Greece show a gradual increase in tree nut utilization in the food and confectionery industry while the snack food sector remains stable. Good quality tree nuts are mostly used as snack food. Greeks are one of the highest nut consumers in the world, with about 8 kg per capita consumption, with peak in December and January. The market, approximately $214 million, is handled by 10-15 processors and packers who also are the major importers/exporters and cover 75-80% of the total amounts of marketed nuts. Imports are usually necessary, with almonds purchased from the U.S. (approximately 1,400 MT) and pistachios purchased from Iran (approximately 2,600). Other U.S. tree nuts (walnuts and pecans) are imported in small quantities. Walnuts face competition from the Turkish product and those purchased from around the Balkan area. The GOG applies EU standards for aflatoxin levels in tree nuts, sampling imported nuts for testing and requiring public health certificates citing the aflatoxin content.
(1,000 MT)
1998 1999 2000 Total Market Size 53 55 57 Total Local Production 30 30 31 Total Exports 5 5 5 Total Imports 25 27 28 Imports from the U.S. 3 3 4The above statistics are unofficial estimates
5. Wood Products
Local wood production falls for short of requirements (33% self sufficiency in industrial wood), with forestry product imports reaching approximately $340 million in 1998. The wood types imported into Greece are hardwoods (tropical timber, oak, ash, beech) and softwoods (douglas fir, SYP, spruce, redwood, pine and tropical timber). U.S. white oak is the main wood sold to Greece, accounting for 50% of U.S. exports to Greece. Thirty percent of the total hardwood and twenty percent of the softwood is imported in precut dimensions. Greek exports are limited to chipboards of negligible amounts. Greece was the sixth, in 1997 and 1998, largest EU market for American hardwood veneer with good trade opportunities in the future, especially in view of the 2004 Olympic games when construction is expected to reach peak levels. The total projected rate of import growth from all suppliers, through 2003, is estimated at 14.5 percent.
(US $ Millions) 1998 1999 2000 Total Market Size 485 500 505 Total Local Production 145 145 145 Total Exports 0 0 0 Total Imports 340 355 360 Imports from the U.S. 25 26 27The above statistics are unofficial estimates
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[end of document] Note* International Copyright, United States Government, 1998 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title 17, United States Code.
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