Overview
In 2022 imports of agriculture and related products (HS chapters 01-24) from the United States totaled $120.5 million, with consumer-oriented products accounting for $85 million. Meat (especially beef) and meat products, dried nuts and fruits, chocolate snacks, coffee and cocoa, wine and spirits, and frozen fish are the most widely imported consumer-oriented products from the USA to the Czech Republic.
The Czech market offers good opportunities for U.S. exporters of selected products for the local food processing and food service industries as well as consumer-oriented products. Local food retailers, food service companies, and wholesalers usually do not buy directly from the United States. Instead, they work with specialized local or even more often foreign (German, Dutch) traders. These traders look for long-term partnerships rather than a one-off business transaction.
All leading food retailers in the Czech Republic are part of large German or British retail groups. The top three companies (Schwarz Group, Rewe, Ahold) have a 59 percent market share. With a turnover of $2.9 billion and boasting 267 outlets, discounter Lidl (German) became the country’s leader among grocery retail chains. The Schwarz Group-owned retailer has had a presence in the country since 2003.
The Czech Republic is experiencing an internet retail boom, including online shopping for all food categories. The trend began in 2017 and was strengthened by the COVID-19 pandemic. Grocery and food service delivery are the most popular businesses, challenging companies to focus on innovation and a customer-care approach.
Food and beverage production is an important industry accounting for 7 percent of the GDP. The most important subsectors include meat, dairy, and milling/bakery ingredients. For the beverage industry, ingredients for brewing beer, particularly hops, are interesting niche products imported from the USA.
Table 1: Beef (US$, thousands)
|
|
2020 |
2021 |
2022 |
2023 (Estimate) |
|
Total Exports |
51,549 |
57,714 |
77,429 |
80,000 |
|
Total Imports |
155,599 |
188,984 |
217,227 |
220,000 |
|
Imports from the US |
1,587 |
2,719 |
4,239 |
5,800 |
|
Exchange Rates |
20.754 |
21.417 |
22.102 |
21.245 |
Units: $ thousands
Sources: Czech Statistical Office; Bureau of Fiscal Service, U.S. Department of the Treasury
Czech consumers have discovered the tastiness of chilled high-quality U.S. beef which has become a very promising prospective U.S. product for the Czech market. (HS code: 0201)
Table 2: Dried Nuts and Fruits (US$, thousands)
|
|
2020 |
2021 |
2022 |
2023 (Estimate) |
|
Total Exports |
149,436 |
173,603 |
170,305 |
156,000 |
|
Total Imports |
884,981 |
963,151 |
922,857 |
956,000 |
|
Imports from the US |
27,333 |
25,757 |
29,688 |
37,000 |
|
Exchange Rates |
20.754 |
21.417 |
22.102 |
21.245 |
Units: $ thousands
Sources: Czech Statistical Office; Bureau of Fiscal Service, U.S. Department of the Treasury
Almonds are imported almost exclusively from California and sell well in retail outlets, especially in hypermarkets. The processing sector (primarily bakers and confectioners) continually seeks lower-cost ingredients while consumers seek higher-quality products. Other highly sought imported dried fruits include raisins, prunes, cranberries, and pistachios. (HS code: 08)
Table 3: Hops (US$, thousands)
|
|
2020
|
2021
|
2022
|
2023 (Estimate) |
|
Total Exports |
57,001 |
60,367 |
60,794 |
36,000 |
|
Total Imports |
14,348 |
15,722 |
10,511 |
18,000 |
|
Imports from the US |
726 |
1,210 |
3,975 |
9,300 |
|
Exchange Rates |
20.754 |
21.417 |
22.102 |
21.245 |
Units: $ thousands
Source: Czech Statistical Office; Bureau of Fiscal Service, U.S. Department of the Treasury
(HS code: 1210)
Although the Czech Republic is known as a major exporter of both hops and lager beer, the 21st-century craft beer revolution has introduced heavily hopped beer styles such as IPAs or APAs to local beer drinkers. Czechs rank first in the beer consumption per-capita (136 liters in 2022). Despite traditional lagers keeping their position as the most popular beer style, the consumption of local craft beers made by booming microbreweries and hopped with USA imported aroma varieties, has been growing.