Spreads in Romania

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Market statistics: Excel workbook (download a sample)

Overview

Discover the latest market trends and uncover sources of future market growth for the Spreads industry in Romania with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Spreads industry in Romania, our research will save you time and money while empowering you to make informed, profitable decisions.

The Spreads in Romania market research report includes:

• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic volumes and values, company and brand market shares
• Five year forecasts of market trends and market growth
• Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

• What is the market size of Spreads in Romania?
• What are the major brands in Romania?
• How are manufacturers leveraging health and wellness trends like reduced sugar or organic sourcing?

Why buy this report?

• Gain competitive intelligence about market leaders
• Track key industry trends, opportunities and threats
• Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Sample Analysis

TRENDS

• The moderate current value growth in 2010 was mainly the consequence of the economic crisis, which affected retail sales. The explanation can be found in the high level of home production of jams, which increased in 2010 due to a reduction in consumer purchasing power and further financial problems among households resulting from the austerity budget. The home production of jams is also a tradition in most the rural households and the economic downturn favoured the continuation of the tradition. Consequently, sales failed to achieve their full potential. The purchasing of honey or jams and preserves directly from individual producers or in outdoor markets also remained high and undermined sales of branded spreads.

COMPETITIVE LANDSCAPE

• Cream Line Romania and its Finetti brand was the leading manufacturer in 2009, followed closely by the multinational player Orkla Foods Romania SA and the brand Bunatati de la Bunica (Grandma’s Delicatessen). Both companies owe their positions to extensive distribution in all channels and to nationwide coverage.

PROSPECTS

• The forecast performance by spreads will be in connection with the changes in lifestyle, sustained by the boom period 2006-2008, with growing consumer interest in natural and healthy food. Although the first years of the forecast period will be tough in terms of purchasing power, an economic recovery is expected, with growing incomes as one consequence, thus leading to the increasing acceptance of packaged products at the expense of home-made ones. Quality and healthy attributes will continue to drive the performance of spreads.

Trends

• 2010 represented the beginning of serious economic downturn in Romania, affecting most of the population through limitations on income and the threat of job losses. However, the strong growth of purchasing power over 2006-2009 led to changes in consumption habits and lifestyle, with an ultimately profound influence on consumer foodservice as a whole; this became evident in 2010, when consumers had to reduce expenditure on the acquisition of durable goods as well as on the renovation of dwellings and real estate. This situation did not have too pronounced an effect on busy lifestyles in Bucharest and other large cities, where Romanians’ propensity to engage in other activities such as tourism and weekend shopping remained quite strong. On the other hand, lower-income consumers had to reduce their levels of expenditure on foodservice and direct their income to paying bills, procuring medicines and purchasing fresh food to be cooked at home.

Competitive Landscape

• The packaged food industry in Romania was heavily fragmented in 2010, with a few multinational companies active within dairy products, confectionery, oils and fats, sweet and savoury snacks, sauces, dressings and condiments, and soup. Meanwhile, foodservice consisted of many small businesses, with an incipient emergence of chains, especially in kiosks and fast food. As a result, most small businesses remained loyal to local producers of meat, bakery and dairy products because of the low number of transactions, but became more pretentious in terms of quality and sophistication. As a consequence, the main producers of oils and fats, spreads, soup, pasta, dairy and bakery products also held the leading positions in foodservice.

Prospects

• Having in view the expected positive dynamics of foodservice over the forecast period resulting from changes in consumption habits and lifestyle, distributors will tend to take the initiative towards the creation of special divisions for foodservice. Macromex SRL, one of the leading distributors in Romania for frozen processed vegetables, has created a specialist division for foodservice following the experience gained in supplying small independent food stores, kiosks and petrol stations, dealing with many small and repeat orders. Given the extensive fragmentation of foodservice, the overall situation is similar to supplying a large number of retail outlets. The same steps have been taken by Delaco SRL in dairy products.

Trends

• Impulse and indulgence products have become a common presence among the urban population, since these people have higher disposable incomes compared with rural inhabitants. The expansion of modern retailing, especially supermarkets/hypermarkets and discounters, has made a strong contribution to the excellent dynamics following a change of perception concerning impulse and indulgence products from sophisticated items to convenience ones, with further impetus added by strong exposure near checkouts.

Competitive Landscape

• Aside from artisanal products, overall the largest category within impulse and indulgence products by a substantial margin, Wrigley Romania Produse Zaharoase SRL was the leading manufacturer thanks to its prominence in confectionery where the company’s gum and sugar confectionery brands have a very strong impulse character. Kraft Foods Romania SA, Cadbury Romania SA and Nestlé Ice cream Romania SRL were close competitors due to their leading positions in chocolate confectionery and ice cream. Thanks to its commanding lead within sweet and savoury snacks, Star Foods EM Srl, itself owned by the giant PepsiCo Inc, ranked fourth overall in 2009.

Prospects

• The economic crisis, anticipated to exert its effects throughout 2010 also, will diminish in force over the forecast period, by the end of which a recovery can be expected. However, impulse and indulgence products will be less affected by this, a fact which creates a basis for good dynamics. Since these products are less affected by fluctuations in income, penetration of all distribution channels can also be expected. Multinational retail chains, with timely advertising and product testing at point of sale, will remain the main distribution channel, although certain impulse products such as gum, small-sized cakes, countlines, snack bars, and sweet and savoury snacks will also achieve a significant presence in small independent food stores and kiosks due to their universal nature.

Trends

• The evolution of nutrition/staples was affected by the economic downturn. The higher incomes of 2009 continued to have an impact on the majority of consumers in terms of lifestyle alterations towards increasing consumption of healthy food, although Romanians generally have little interest in health and dietary issues. Traditional Romanian cuisine features a significant amount of animal fat and deep-fried dishes. Nevertheless the rising level of health awareness was reflected in a slight reorientation of consumer preferences towards healthier options, although this eating behaviour was mainly restricted to highly educated, wealthier middle-aged consumers, people who were in fact less affected by the economic crisis. The majority of the population continued to eat in the traditional way, in other words without really thinking about how healthy the food is, as long as it is tasty and costs little.

Competitive Landscape

• Aside from the substantial share of artisanal products, particularly in the largest category of bread, there remained a high degree of fragmentation, with only three companies holding retail value shares of 4% or more in 2009. Vel Pitar SA and Titan SA were in first and second places respectively, a result of their leading positions in packaged/industrial bread, but these were challenged by the multinational companies prominent within the large categories of dairy products (Danone Romania SRL and Friesland Romania SA) and oils and fats (Bunge Romania SRL).

Prospects

• Romania is expected to represent an excellent locality for the production of nutrition/staples, with a strong interest in the development of both organic and functional food as a result of the anticipated economic recovery and greater investment by multinationals. Domestic manufacturers will be the main winners in this area, but only those which have already established strong operations. Higher disposable incomes will tend to cause a reduction in sales of artisanal products in favour of packaged alternatives, especially within bread and dairy products, where foreign investment will likely remain significant.

Trends

• Despite the economic downturn, consumers in Bucharest and other large cities remained time-poor in 2010, with professional employees required to work increasingly long hours. This resulted in a large number of consumers having less time available for food preparation yet sufficient disposable income to pay more for meal solutions. This need was addressed by the launch of new ready meals, frozen processed food, soup and sauces, dressings and condiments, all of which benefited from a change in perception from sophisticated to convenience products.

Competitive Landscape

• Cris-Tim 2 Prodcom Srl retained the leading position within meal solutions in 2009 due to its pre-eminence within the largest category of chilled processed food. Angst RO, Aldis SA, TC Affaires Srl and Tabco Campofrio Romania Srl, all with prominent positions in chilled processed food, also fared well in meal solutions as a whole. The trend towards increased branding as a means of differentiating products in this highly competitive area led to a concentration of packaged items in the hands of a few large manufacturers. These have developed their packaging and product quality since Romanians have become more cautious regarding provenance, labelling and product information.

Prospects

• The anticipated economic recovery following the recent crisis is expected to also lead to higher disposable incomes. These in turn are likely to encourage a modest sales performance over the forecast period given the poor economic outlook for the initial years of the forecast period, with constant value expected to rise slightly faster than volume. The anticipated rapid expansion of discounters and even of hypermarkets such as Kaufland in medium-sized cities is likely to provide strong support for volume growth but will also prove an important factor in slowing down unit price increases. Higher disposable incomes will also have an impact on consumer lifestyles, and since the recovery of the economy would most likely lead to longer working hours there will be less time available for cooking at home; this would in turn boost sales of meal solutions.

For each category and subcategory you will receive the following data in Excel format:

From Passport

• Market Size
• Market Share
• Brand share
• Distribution
• Analysis by flavour
• Pricing
• Products by Ingredient
• Products by Ingredient Actuals

Market size details:

• Retail Volume
• Retail Volume % growth
• Retail Volume per capita
• Foodservice Volume
• Foodservice Volume % growth
• Foodservice Volume per capita
• Total Volume
• Total Volume % growth
• Total Volume per capita
• Retail Value retail selling price % growth
• Retail Value retail selling price local currency, USD, EUR, GBP, CHF, JPY
• Retail Value retail selling price per capita local currency, USD, EUR, GBP, CHF, JPY
• Retail Value retail selling price real (constant 2008) Prices % growth
• Retail Value retail selling price real (constant 2008) Prices local currency, USD, EUR, GBP, CHF, JPY
• Retail Value retail selling price real (constant 2008) Prices per capita local currency, USD, EUR, GBP, CHF, JPY
• Retail Value manufacturer selling price % growth
• Retail Value manufacturer selling price local currency, USD, EUR, GBP, CHF, JPY
• Retail Value manufacturer selling price per capita local currency, USD, EUR, GBP, CHF, JPY
• Retail Value manufacturer selling price real (constant 2008) Prices % growth
• Retail Value manufacturer selling price real (constant 2008) Prices local currency, USD, EUR, GBP, CHF, JPY
• Retail Value manufacturer selling price real (constant 2008) Prices per capita local currency, USD, EUR, GBP, CHF, JPY
• Retail Volume (Tonnes)
• Retail Volume (Tonnes) % growth
• Retail Volume (Tonnes) per capita
• Foodservice Volume (Tonnes)
• Foodservice Volume (Tonnes) % growth
• Foodservice Volume (Tonnes) per capita
• Total Volume (Tonnes)
• Total Volume (Tonnes) % growth
• Total Volume (Tonnes) per capita
• Retail Value retail selling price Nominal (Current) Prices % growth
• Retail Value retail selling price Nominal (Current) Prices local currency, USD, EUR, GBP, CHF, JPY
• Retail Value retail selling price Nominal (Current) Prices per capita local currency, USD, EUR, GBP, CHF, JPY
• Retail Value manufacturer selling price Nominal (Current) Prices % growth
• Retail Value manufacturer selling price Nominal (Current) Prices local currency, USD, EUR, GBP, CHF, JPY
• Retail Value manufacturer selling price Nominal (Current) Prices per capita local currency, USD, EUR, GBP, CHF, JPY

Global insight and local knowledge

With 40 years’ experience of developed and emerging markets, Euromonitor International’s research method is built on a unique combination of specialist industry knowledge and in-country research expertise.

This approach is what enables us to achieve our goal of building a market consensus view of size, shape and trends across the full distribution universe of each category. We factor in whichever channels are relevant, from large-scale grocery to direct sellers, from discount stores to local mom-and-pop outlets.

Industry specialists

Each industry we cover is managed by an Industry Manager and team of Industry Analysts who research and report on their specialist categories all year round.

Our collaborative approach to research means that these industry teams are in constant dialogue with industry players and opinion formers. The planning of our research programmes reflects latest market trends and industry events. In completing each update project, this provides invaluable input to the testing, review and finalisation of our data.

The specialist in-house teams bring together findings from all stages of the annual research process. They work closely with in-country analysts, assess and challenge data and exercise final editorial control over the publication of new data and analysis.

Country and regional analysts

Our in-country analyst network is managed by country and regional analysts in our offices around the world. Working closely with each in-country team, the regional research management team ensures that all country researchers are well schooled in best practices, from the information collected in store checks, to the dialogue we build in trade surveys. Our country analysts ensure that national reports explain the data trends and provide clear insights into the local market’s dynamics.

In-country research network

To deliver fresh insights every year in countries all around the world, we believe the strongest approach is to use analysts on the ground. They bring fluency in local language, physical proximity to the best sources, an ability to engage directly with local industry contacts, and an awareness of how the products and services we study are advertised, sold and consumed. These are essential parts of our ability to report incisively on these markets.

Our research methods

Each Euromonitor International industry report is based on a core set of research techniques:

Desk research

With industry events, corporate activity, trends and new product introductions tracked year round by our industry team, desk research provides a starting point for the in-country research programme. Our in-country researchers will access the following sources:

• National statistics offices governmental and official sources
• National and international trade press
• National and international trade associations
• Industry study groups and other semi-official sources
• Company financials and annual reports
• Broker reports
• Online databases
• The financial, business and mainstream press

Accessing sources is only the first step. The ability to interpret and reconcile often conflicting information across multiple sources is a key aspect of the added value we provide.

Store checks

Store checks are an integral part of our methods for product industries. Carried out on the ground across a relevant mix of channels, the information gained provides first-hand insights into the products we are researching, specifically:

• Place: We track products in all relevant channels, selective and mass, store and non-store
• Product: What are innovations in products, pack sizes and formats?
• Price: What are brand price variations across channels, how do private label’s prices compare to those of branded goods?
• Promotion: What are marketing and merchandising trends, offers, discounts and tie-ins?

Findings are cross-referenced with brand share data analysis. The results, combined with the findings of desk research, provide a strong basis for identifying key areas of questioning to take forward into our trade survey.

Trade survey

Interaction with global players at corporate HQ and regional levels is complemented by unique local data and insights from our in-country trade surveys around the world. Through the high profile of the Euromonitor International brand, we are able to talk directly to a wide range of sources and therefore inform our analysis with the knowledge and opinions of the leading operators in the market.

Trade surveys allow us to:

• Fill gaps in available published data per company
• Generate a consensus view of the size, structure and strategic direction of the category
• Access year-in-progress data where published sources are out of date
• Evaluate the experts’ views on current trends and market developments

In building our composite industry view, we engage with a variety of personnel in key players at all points of the supply chain: materials suppliers, manufacturers, distributors, retailers and service operators. We also interview desk research sources: industry associations; study groups; and third party observers from the trade and financial press.

Our objective is to engage in conversation with trade sources in which we exchange ideas and views on the industry, sharing our work-in-progress findings on supply/demand dynamics and potential. This dialogue enhances both parties’ understanding of the local market. The scope and reach of our trade survey also serves to eliminate bias (intentional and unintentional) from any single source.

Company analysis

At a global level, our company research combines our mix of industry interaction and use of secondary sources such as annual accounts, broker reports, financial press and databases. From a data perspective, the aim is to build “top-down” estimates of major players’ total global and regional sales.

At a country level, in line with local reporting requirements, we access annual accounts, national-specific company databases and local company websites. These are all invaluable sources as we build a view of each domestic player’s size and position within very specific categories of the industry.

Forecasts

Data projections and future performance analysis are key elements of Euromonitor International’s market intelligence. Working with historic trends of 15 years or more, a key aspect of our trade survey is to engage industry insider views of the next five years. Will volumes maintain their historic trend? Will price increases or falls of recent years continue, accelerate or slow down? Will increasing demand for one product cannibalise sales of another?

Forecasts represent many of the essential conclusions we have reached about the current state of the market, how it works and how it behaves under different macro and micro conditions. Our written analysis will state the assumptions and the trade opinion behind whether our predictions are optimistic or pessimistic, so that clients can use our statistical forecasts with confidence.

Data validation

All data is subjected to an exhaustive review process, at country, regional and global levels.

The interpretation and review of sources and data inputs forms a central part of the collaboration between industry teams and country researchers. Numbers are delivered to regional and global offices with an audit trail of sources and calculations to allow for a thorough evaluation of data sense and integrity.

Upon completion of the country review phase, data is then reviewed on a comparative basis at regional and then at a global level. Comparative checks are carried out on per capita consumption and spending levels, growth rates, patterns of category and subcategory breakdowns and distribution of sales by channel. Top-down estimates are reviewed against bottom-up regional and global market and company sales totals.

Where marked differences are seen between proximate country markets or ones at similar developmental levels, supplementary research is conducted in the relevant countries to confirm and/or amend those findings. This process ensures international comparability across the database, that consistent category and subcategory definitions have been used and that all data has been correctly tested. We make sure that possible discrepancies between different published sources have been reconciled and that our interpretation of opinion and expectation from each country’s trade sources has been applied to form a coherent international pattern.

Market analysis

Another integral part of all our research programmes is that all Euromonitor International data is accompanied by clear written analysis. From a research perspective, this explains and substantiates data findings. From a client perspective, this offers unique insights into local consumption trends, routes to market, brand preferences, channel dynamics and future trends.

Our country level analysis also provides invaluable input into the ability of our central industry specialist teams to marry local insights with strategic conclusions on the direction of the market regionally and globally.