European food processing companies believe the consolidation of the retail market is the biggest threat to future growth and profitability, according to the latest survey from KPMG Corporate Finance, AFX News reports. Significant changes are taking place in the retail environment as national players fight for market share and increased scale, with the enlarged entities commanding more negotiating power. The consolidation is being led by companies such as Dutch group Royal Ahold NV and the French group Carrefour. The survey also indicates that increasing raw material and transport costs together with difficulties in recruiting and retaining staff are also seen as key concerns in Europe. In addition, it suggests that food companies plan to take an aggressive approach in response to the expected overall low growth in the industry and continued margin pressure.