Concentration Processes in the Retail and Meat Processing Industry in Poland and Competitive Relationships in the Food Chain

The study investigates the consolidation of Poland’s food retail and meat processing industry from 2010 to 2022. The aim was to assess the relative changes in concentration in these two sectors and to determine whether these processes affected competitive conditions in the food chain. For this purpose, the k-firm concentration ratio (CRk) and HHI index were estimated using Central Statistical Office data supplemented by revenue data for Poland’s largest meat processing and food retail companies. The research reveals a notable trend of mergers and acquisitions among food retail entities. As a result, the share of the top four retailers (CR4) increased from 25% in 2010 to 46% in 2022, and the market moved from a highly competitive to loose oligopoly. At the same time, the concentration of the meat industry increased, but to a lesser extent – CR4 in 2022 reached 33%. This would indicate that food retail firms’ bargaining power towards meat industry firms has increased. However, given the economic potential of firms, there is a slight improvement in the meat industry’s position vis-à-vis food retail. The concentration in the latter has been growing steadily, nevertheless, the sector itself has not been developing as dynamically as the meat processing one.