The agri-food sector is a major contributor to Lebanon’s industrial sector growth and is expected to continue to play a major role in the economy, driven by government support and private sector initiatives to boost its competitiveness.

KEY FACTS AND FIGURES:

• In 2018, the agri-food sector was the largest contributor to the industrial sector output accounting for 38% of industrial output and generating 2.9% of the country’s GDP.
• The sector has an estimated size of 1.6 billion USD and has grown at a CAGR of 9.5% over the 2010 and 2018 period
• There are around 1,245 agri-food companies constituting the largest share of total industrial firms in Lebanon, with 48% located in Mount Lebanon Governorate.
• Exports of agri-food products accounted for 11.7% of total exports and for 12.4% of industrial exports in 2019. Despite all external and internal challenges, agri-food exports have been growing at a CAGR of 2% since 2010, highlighting the sector’s potential and resilience. 
• Lebanese agri-food production is diversified with a wide range of traditional and innovative products being exported to regional and international markets. Top 3 exported agri-food products in 2019 included dried fruits and nuts (10% of total), followed by processed chocolate (8%) and other vegetables and food preparations (7%).
• Arab countries are importing the highest share of Lebanese agri-food products, accounting for 48% of total agri-food exports in 2019 with Saudi Arabia, UAE, Qatar, Iraq and Kuwait importing more than 35%.

COMPETITIVE ADVANTAGES:

• Large and diversified agriculture land: Lebanon has the largest agriculture land share from its territory in the Middle East at 63%, supporting the development of a competitive agriculture processing sector.
• Skilled labor force with competitive wages: The agri-food sector benefits from a cost-effective labor force that can support its development and growth. In 2018, around 30,000 students were enrolled in Engineering and Agri-food studies.
• Government support: the government of Lebanon has placed the agri-food sector as a key priority to develop and support through its various technical and financial services including tax incentives, technical assistance and others.
• International treaties and agreements: Lebanon’s agri-food exporters benefit from favorable terms and access to external markets due to a considerable number of bilateral and multilateral agreements including GAFTA and EFTA.

MARKET OPPORTUNITIES:

• Wine: Lebanese wine have reached global reach with high penetration rates in countries with large diaspora population. Wine exports reached USD 21 million in 2019 with the UK (33%) and USA (17%) topping the destinations.
• Olive oil: Lebanon’s olive oil exports performed well over the years, growing at a CAGR of 6% during the 2010-2019 period, leaving room for various investment opportunities in the production of extra virgin olive oil from new varieties of olive.
• Dried fruits and nuts: Lebanon’s dried fruits and nuts value chain can be reshaped to create higher value products and become a consistent supplier to untapped regional markets such as Saudi Arabia, Egypt and Spain.
• Chocolate: Lebanon is a main supplier of chocolate for GCC countries offering premium chocolate pieces in sophisticated packages. Local brands have the capacity to tap into wealthier emerging markets with new healthier chocolate produces.
• Dairy products: The availability of livestock in the country paves the way for important investment opportunities in manufacturing high-quality dairy-based goods.