05 March 2026
The Greek supermarket basket is cheaper than eight European markets. The recent January 2026 survey by the Institute for Retail Research of Consumer Goods confirms that prices on Greek shelves are comparatively low. Even with VAT included, the average basket remains 35% cheaper than Germany, 34% cheaper than France, and 23% cheaper than the United Kingdom.
Yet beneath this surface lies a paradox: Greece records the second-highest average VAT rate on food among the markets surveyed, at 15.6%. In most other countries, the equivalent rate hovers around 9–10%. When a product is taxed at 13% or 24% in Greece, while elsewhere in Europe it is taxed at 4% or 5%, the margin left for industry, distribution, and retail is significantly smaller.
The consumer sees the final price. They don't break down how much goes to the state and how much stays in the supply chain. But for brands, this difference is decisive. When at least 15.6% of the price is tax and the total price must remain competitive, margins shrink dramatically. Large brands with economies of scale can absorb part of the cost. Smaller players, new entrants, and premium products that rely on higher margins face disproportionately greater difficulty.
In a market with compressed margins, every mistake costs more. An out-of-stock, a flawed demand forecast, a poorly negotiated deal — all have a greater impact when you start with a lower margin. VAT is the one cost factor you cannot negotiate, optimise, or reduce through better operations. It is fixed, given, and occupies space that elsewhere is used differently.
The question every brand faces is not whether it can keep its price low. The question is whether it can keep its margin high enough to invest and grow. The tax structure is not within your control. But operational efficiency, forecasting accuracy, shelf effectiveness, the ability to maximise sell-through and minimise losses — these are. And in a tight-margin market, these make all the difference.