The role of market concentration in the agrifood industry
The role of market concentration and potential market power exertion in the agrifood industry is a topic of longstanding interest and concern to policymakers, stakeholders, and researchers. This study provides a comprehensive overview of recent trends in market concentration upstream, midstream, and downstream the agrifood industry at the global, regional, and country level, and assesses how and to what extent concentration could be affecting market conduct and performance of food systems in developed and developing countries.
The analysis additionally discusses, to the extent detectable, implications of concentration, including vertical and horizontal integration that favor concentration, for food security and nutrition and environmental sustainability. While market concentration in the agrifood industry has increased across most segments, the evidence on market power exertion is inconclusive. Several knowledge and data gaps are identified and additional research is necessary to derive more general conclusions and policy recommendations.
Full citation: Hernandez, Manuel A.; Espinoza, Alvaro; Berrospi, Maria Lucia; Deconinck, Koen; Swinnen, Johan; and Vos, Rob. 2023. The role of market concentration in the agrifood industry. IFPRI Discussion Paper 2168. Washington, DC: International Food Policy Research Institute (IFPRI).