The
Strategy Briefings

The New Europe: Marketing Opportunities in the Enlarged EU

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Chapters: 8  |  Tables: 54  |  Publication date: Mar 2007
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  • Get insight into trends in market performance
  • Pinpoint growth sectors and identify factors driving change
  • Identify market and brand leaders and understand the competitive environment

Regional coverage

Western Europe; Eastern Europe; North America; Latin America; Asia-Pacific; Oceania; Africa and the Middle East

Table of contents

1. EXECUTIVE SUMMARY

1.1 DEMAND FACTORS

Summary 1 SWOT Analysis of EU-8 and Newly Acceded Countries 2006

1.2 CONSUMER MARKET TRENDS

Chart 1 Sales by Market in New Europe and Newly Acceded Countries 2001/2006

1.3 COMPANY DEVELOPMENTS

1.4 RETAIL DEVELOPMENTS

OUTLOOK

Chart 2 Forecast Sales by Market in the New Europe and Newly Acceded Countries 2006/2011

2. INTRODUCTION AND OVERVIEW

2.1 DEFINITIONS

2.2 HISTORICAL DEVELOPMENT OF THE EU

Summary 2 Historical Development of the EU 1951-2007

2.3 EU GOALS AND ENTRY CRITERIA

Copenhagen criteria

2.4 ENTRY TO THE EURO-ZONE

EU-8 countries

3. SOCIOECONOMIC DRIVERS

3.1 ECONOMIC INDICATORS

GDP growth

Table 1 GDP Growth in the EU 2000-2005

Chart 3 Total GDP in the EU-8 and Newly Acceded Countries 2005

Chart 4 Per Capita GDP in the EU-8 and Newly Acceded Countries 2005

Inflation

Chart 5 Inflation Rate 2005

Chart 6 General Government Budget Surplus/Deficit as a % of GDP 2005

3.2 INCOME AND EXPENDITURE

Disposable income

Table 2 Per Capita Disposable Income in the EU 2000-2005

Consumer expenditure

Table 3 Total Consumer Expenditure in the EU 2000-2005

3.3 DEMOGRAPHIC FACTORS

Table 4 EU Populations 2000-2005

3.4 MIGRATION

Chart 7 Net Migration in the EU 2005

3.5 TRADE AND AGRICULTURE

Free movement of goods

Reform of the CAP

Organic farming in the Czech Republic

Restrictions on newly acceded countries

Manufacturing boosted by FDI

4. CONSUMER MARKET OPPORTUNITIES

4.1 PACKAGED FOODS

Sales nearly double in Bulgaria and Romania

Convenience and quality are key trends

Poland leads the pack

Hungary leads by per capita spend

Romanian market remains unsophisticated

Rising spending power boosts Bulgarian market

Slovakian growth fuelled by spread of supermarkets

Table 5 Sales of Packaged Foods by Country Group 2001/2006

Table 6 Sales of Packaged Food by Country 2001/2006

4.2 ALCOHOLIC DRINKS

Estonia and Romania see strongest growth

Vodka gives way to other spirits and wine

Abolition of import duties benefits foreign brands

Spirits sees trend towards premium brands

Growing incomes create higher demand for wine

Counterfeit wine remains a problem

White wine dominates in region

Table 7 Sales of Alcoholic Drinks by Country Group 2001/2006

Table 8 Sales of Alcoholic Drinks by Country 2001/2006

4.3 SOFT DRINKS

Healthier drinks fuel growth

Polish consumers become more demanding

New labelling rules in the Czech Republic

Slovakians remain price-sensitive

Table 9 Sales of Soft Drinks by Country Group 2001/2006

Table 10 Sales of Soft Drinks by Country 2001/2006

4.4 COSMETICS AND TOILETRIES

Bulgaria and Romania beginning to develop

Direct sales channel fuels growth

Poland leads the way

Younger generations behind growth in Czech Republic

Advertising stepped up in Romania

Baltic consumers more price sensitive

Table 11 Sales of Cosmetics and Toiletries by Country Group 2001/2006

Table 12 Sales of Cosmetics and Toiletries by Country 2001/2006

4.5 OTC PRODUCTS

Increased focus on personal health drives sales

Government switches contribute to growth

Poland leads the way

Smoking cessation aids benefit from stricter tobacco regulations

Table 13 Sales of OTC Products by Country Group 2001/2006

Table 14 Sales of OTC Products by Country 2001/2006

4.6 CONSUMER FOODSERVICE

Fastest growth in newly acceded countries

International chains bring about structural changes

Case Study: The Rise of Coffee Shops

Poland most developed consumer foodservice market

Romania sees dramatic growth

Baltic states remain underdeveloped

Table 15 Sales of Consumer Foodservice by Country Group 2001/2006

Table 16 Sales of Consumer Foodservice by Country 2001/2006

5. COMPANY DEVELOPMENTS

5.1 PACKAGED FOOD COMPANIES

Nestlé and Groupe Danone have strongest presence

Shelf-stable products offer growth potential

Dairy market remains highly fragmented

PepsiCo strengthens snack foods position

Royal Numico dominates baby food market

Table 17 Packaged Food: Shares of Key International Players in Selected Markets 2005

5.2 COSMETICS AND TOILETRIES COMPANIES

Local companies struggle to compete

Procter & Gamble and Avon remain ahead of rivals

L’Oréal is relative latecomer

Table 18 Cosmetics and Toiletries: Shares of Key International Players in Selected Markets 2005

5.3 OTC COMPANIES

GlaxoSmithKline is leading OTC player

Czech Republic remains dominated by local player Zentiva

Table 19 OTC: Shares of Key International Players in Selected Markets 2005

6. RETAILING DEVELOPMENTS

6.1 FOOD RETAILING TRENDS

Independent grocers still take highest share of food sales

Rapid expansion of hypermarkets and supermarkets

Discounters benefit from good quality/prices ratio

Convenience stores also on the rise

Chart 8 Food Sales by Channel in the Old Europe 2005

Chart 9 Food Sales by Channel in the New Europe 2005

Chart 10 Food Sales by Channel in the Newly Acceded Countries 2005

6.2 NON-FOOD RETAILING TRENDS

New shopping centres attract non-food multinationals

Direct sales channels of particular importance for cosmetics and toiletries

6.3 RETAILER DEVELOPMENTS

Retailers remains fragmented

Lidl expands aggressively

Race to enter Romania

Table 20 Retailers’ Market Shares in Selected Markets 2005

Table 21 Grocery Retailers’ Market Shares in Selected Markets 2005

Case Study: Tesco

Summary 3 Tesco: Development in Selected EU-8 Markets 2005

6.4 PRIVATE LABEL TRENDS

Discounters fuel private label growth

Hungary has most advanced private label industry

Brands fight back in Poland

6.5 TRENDS IN INTERNET RETAILING

Falling Internet prices contribute to growth in Poland

Czech banks introduce secure payments

Internet sales hampered in Romania and Bulgaria by on-line payment difficulties

Hungarian e-commerce remains undeveloped

Table 22 Number of Internet Users by Country 2000-2005

7. MARKET SNAPSHOTS

7.1 CZECH REPUBLIC

Summary 4 Czech Republic: Key Facts 2007

Economic picture

Table 23 Czech Republic: Economic Indicators 2000-2005

Market trends

Chart 11 Czech Republic: Sales in Selected Markets 2001/2006

7.2 ESTONIA

Summary 5 Estonia: Key Facts

Economic picture

Table 24 Estonia: Economic Indicators 2000-2005

Market trends

Chart 12 Estonia: Sales in Selected Markets 2001/2006

7.3 HUNGARY

Summary 6 Hungary: Key Facts

Economic picture

Table 25 Hungary: Economic Indicators 2000-2005

Market trends

Chart 13 Hungary: Sales in Selected Markets 2001/2006

7.4 LATVIA

Summary 7 Latvia: Key Facts

Economic picture

Table 26 Latvia: Economic Indicators 2000-2005

Market trends

Chart 14 Latvia: Sales in Selected Markets 2001/2006

7.5 LITHUANIA

Summary 8 Lithuania: Key Facts

Economic picture

Table 27 Lithuania: Economic Indicators 2000-2005

Market trends

Chart 15 Lithuania: Sales in Selected Markets 2001/2006

7.6 POLAND

Summary 9 Poland: Key Facts

Economic picture

Table 28 Poland: Economic Indicators 2000-2005

Market trends

Chart 16 Poland: Sales in Selected Markets 2001/2006

7.7 SLOVAKIA

Summary 10 Slovakia: Key Facts

Economic picture

Table 29 Slovakia: Economic Indicators 2000-2005

Market trends

Chart 17 Slovakia: Sales in Selected Markets 2001/2006

7.8 SLOVENIA

Summary 11 Slovenia: Key Facts

Economic picture

Table 30 Slovenia: Economic Indicators 2000-2005

Market trends

Chart 18 Slovenia: Sales in Selected Markets 2001/2006

8. FUTURE OUTLOOK

8.1 FUTURE ENLARGEMENT OF THE EU

Candidate countries

Potential candidate countries

Summary 12 Potential EU Enlargement

8.2 ECONOMIC OUTLOOK

Polish growth hindered by high unemployment

Latvia to see highest GDP growth rate over forecast period

Consumer confidence high in Estonia

Strong growth expected for Lithuania, Czech Republic and Slovakia

Newest members still face challenges

Euro to boost Slovenia’s exports

Table 31 Forecast GDP Growth in EU-8 and Newly Acceded Countries 2006-2010

8.3 RETAIL OUTLOOK

Large retailers plan further expansion in region

Still plenty of growth potential for hard discounters

Internet retailing set to take off once teething problems are overcome

8.4 MARKET TRENDS AND FORECASTS

Companies will keep coming

Packaged goods to see trend towards premiumisation

Food industry to see further consolidation

Growing concern over personal appearance and wellbeing

Table 32 Forecast Sales of Selected Markets in the New Europe and Newly Acceded Countries 2006-2011

8.5 SECTOR FORECASTS

Packaged foods

Table 33 Forecast Shares of Packaged Foods by Country Group 2001/2006/2011

Table 34 Forecast Sales of Packaged Foods by Country 2006-2011

Alcoholic drinks

Table 35 Forecast Shares of Alcoholic Drinks by Country Group 2001/2006/2011

Table 36 Forecast Sales of Alcoholic Drinks 2006-2011

Soft Drinks

Table 37 Forecast Shares of Soft Drinks by Country Group 2001/2006/2011

Table 38 Forecast Sales of Soft Drinks 2006-2011

Cosmetics and toiletries

Table 39 Forecast Shares of Cosmetics and Toiletries by Country Group 2001/2006/2011

Table 40 Forecast Sales of Cosmetics and Toiletries by Country 2006-2011

OTC products

Table 41 Forecast Shares of OTC Products by Country Group 2001/2006/2011

Table 42 Forecast Sales of OTC Products by Country 2006-2011

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