Greece: Bread Prices Rise 39% Since 2020, Yet Remain 2nd Cheapest in Europe

Despite a significant increase in bread prices, Greece still boasts Europe’s second-lowest cost of fresh bread. A recent report reveals that the price of half a kilo of fresh bread has risen 39% since 2020, now standing at €1.21—48% lower than the European average of €1.80.

These findings come from a nationwide survey conducted by the Federation of Greek Bakers and presented by the Athens Chamber of Crafts. The report attributes the price hike to rising raw materials, electricity, natural gas, and labour costs.

Price Trends

• Raw Materials: The price of milled wheat surged from €230/ton in August 2021 to €400/ton by June 2022, significantly impacting bread production costs.
• Electricity: From 2019 to 2023, Greece’s electricity prices were consistently above the EU average but fell below those in several countries, including France and Italy, in 2023.
• Natural Gas: Prices for natural gas also spiked across the EU in 2022 but declined in 2023. Greece’s rates remained lower than those in countries like Germany and the Czech Republic.
• Labour Costs: Labor expenses rose by 17% in 2023 compared to 2019, with a further 25% increase noted in the second quarter of 2024.

Bread Industry Landscape

In 2021, Greece had 8,391 businesses in the bread production sector, the highest ratio in the EU at eight businesses per 10,000 residents. Despite Greece ranking 23rd in net turnover within the EU—€1.856 billion—the average revenue per business was €221,294.

Over the past decade, the sector established 2,622 new businesses, though 429 were deregistered.

Declining Consumption

Bread consumption in Greece has steadily decreased, with a drop of 22,164 tons recorded from 2019 to 2022. The decline in disposable income, which fell by 30%, has influenced this trend. On average, Greeks spend €24.18 monthly on bread, with the highest consumption levels observed among households earning between €1,800 and €2,000.

Consumer preferences are shifting, and there is a demand for additional services from local bakeries, such as coffee, ready meals, and specialty products like gluten-free bread.

Make your own – Bread, a basic recipe