Butter and Spreads in Poland

2021 DEVELOPMENTS

As Poles continue to work remotely from home and refrain from travel, demand for butter and spreads remains high as Poles turn to cooking and baking

With many consumers remaining at home in the first half of 2021 as the COVID-19 pandemic rages on, Poles continue to prepare meals from scratch in their kitchens and indulge in baking as a pastime and a source of comfort. This is anticipated to result in continued high demand for butter and spreads in 2021, improving the performance of all product areas, although margarine and spreads, which is suffering from an increasingly unhealthy image in Poland, as it does in most Eastern European countries, continued to record negligible growth in retail volume terms due to awareness of the level of harmful fats in these products in light of the health and wellness trend.

In line with increasing demand for butter, local dairy producers strengthen their positions during the pandemic

Despite continuing to lose value share in 2021 Upfield Polska Sp zoo remains leader of overall butter and spreads in Poland followed by ZT Kruszwica SA. Upfield took over leadership from ZT Kruszwica SA in 2020 due to intense competition within the product area of margarine and spreads, while Upfield also dominates cooking fats.

Discounters strengthens distribution of butter and spreads aided by expanding network and increasing demand for affordable private label products

Private label continues to gain value share in 2021, driven by demand for butter, as price-sensitive Poles search for more affordable options during the pandemic. This trend is supported by the strengthening position of discounters as a distribution channel for butter and spreads, which has gained further value share from hypermarkets and supermarkets.

PROSPECTS AND OPPORTUNITIES

Return to normalisation for retail sales of butter and spreads from 2022 in line with predicted stronger demand through foodservice

As consumers return to their normal daily routines as COVID-19 related measures are further relaxed in Poland, they are less likely to be able to dedicate as much time towards cooking and baking at home. In addition, the gradual relaxing of COVID-19 related measures is likely to support greater demand for foodservice as these outlets continue to reopen and gradually operate at full capacity, depending on the threat level if the virus remains in circulation into the early part of the forecast period.

Stronger demand for butter to continue, driven by clean eating and provenance trends

Provenance and clean eating are two trends which are likely to continue to support demand for butter over the forecast period, with this product set to record a stronger performance in retail volume terms compared to the review period, despite ongoing rising price rises. Depending on their financial circumstances, Poles’ purchasing decisions are still likely to be influenced by origins and lack of GMO ingredients.

Margarine and spreads set to continue on declining path although niche areas offer further development potential

Despite a marginal improvement in its performance during the pandemic, margarine and spreads is predicted to decline, with the rate of decline gaining momentum over the course of the forecast period. Offering a much lower average unit price compared to butter, this product will continue to struggle to gain consumers’ attention due to its overly processed and unhealthy perception amongst Polish consumers.