Demand for margarine and spreads will continue to decline in 2020, as the product is expected to continue to struggle due to its less healthy and more processed reputation compared with butter. Originally, margarine benefited from being marketed as containing less fat but the use of preservatives and additives by some products is likely to continue to push consumers towards brands that have more of a natural positioning in 2020, for which more affluent consumers are willing to pay, despite the much cheaper prices offered by margarine.
Butter with 82% fat content will remain popular in 2020, while spreads produced from vegetable oil are losing interest. In addition, the demand for high natural fat content in butter is increasing the popularity of ghee, a cooking fat produced with 100% milk fat originating from India.
Butter will record a positive performance in 2020 with strong retail volume sales. While some consumers previously had doubts over the health and nutritional aspect of butter, education from producers is leading to a greater understanding amongst Lithuanians regarding its more natural and less processed positioning.
Private label will continue to gain current retail value share within butter and spreads into the forecast period, with Lidl Lietuva and Maxima LT expected to remain highly placed behind branded producers. These retailers are able to offer a wide range of products that target lower-income consumers, making the previously higher priced butter accessible to a wider range of customers.
Consumers are expected to remain adventurous and try new products into the forecast period, with new product developments in butter and spread expected to offer healthy options and more innovative products. For example, Žemaitijos Pienas’ three new flavours of Saulute spreads are likely to retain their popularity into the forecast period, including Saulute with herbs which contains onions, garlic, parsley, carrots, and pepper, Saulute with chives which is low in salt and enriched with vitamin C, and Saulute with roasted hemp seeds, which is enriched with omega 3.
As a result of changing health trends, with consumers switching to more natural, high fat butter products, margarine is expected to continue to shrink in Lithuania into the forecast period. Small players in margarine are expected to disappear from Lithuania, just like Sostines Pamarys, shrinking the current retail value share of margarine even further.
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Understand the latest market trends and future growth opportunities for the Butter and Spreads industry in Lithuania with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Butter and Spreads research and analysis database.
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