Butter and Spreads in Slovenia

2021 DEVELOPMENTS

Butter and spreads is largely unimpacted by pandemic trends due to longer consumption cycles

Butter and spread products are considered staples but are not consumed in large quantities, and Slovenians have continued to purchase these products during the pandemic as they are usually inexpensive. Moreover, increased home-cooking, particularly baking, has helped boost demand.

Cash strapped consumers favour margarine and spreads in the wake of COVID-19

As well as offering lower-fat options that appeal to Slovenia’s health-conscious consumers, margarine and spreads will benefit from the lower price point of these products (compared to butter), as Slovenians face ongoing constraints on their household budgets in the wake of COVID-19. The economic situation in Slovenia was already complex before the pandemic, and an estimated 15,000 jobs were lost early in the year, taking the unemployment rate up to 10% (from 8%).

Private label brands utilise social media advertising during lockdown as Atlantic Trade retains the lead

The competitive landscape in butter and spreads is set to remain largely unchanged in 2021, with Atlantic Trade doo retaining a strong lead ahead of its closest rival, Pomurske Mlekarne dd, thanks to the popularity and widespread availability of its Rama brand.

PROSPECTS AND OPPORTUNITIES

Exotic ingredients and innovation will fuel current value growth in the years ahead

As Slovenian consumers become increasingly discerning in the coming years, ‘exotic’ tastes and health and wellness trends will become more visible in butter and spreads. For example, players are expected to add ingredients such as chia and flax seeds to margarine and to highlight the added fibre, protein and cholesterol-lowering properties of their products.

Cooking fats will continue to falter in Slovenia due to rising health concerns

Over the forecast period, the growing health and wellness trend will continue to deepen in the wake of the pandemic. Slovenians will increasingly pay more attention to the relationship between diet and overall health, and this will lead to a decline in demand for unhealthy, fatty foods as consumers prioritise products with added health benefits.

Private label will benefit from consumers economising over the forecast period

Private label is expected to see its value share grow over the forecast period as a result of the COVID-19 pandemic. This will be due to more Slovenians having to economise at the beginning of the forecast period as purchasing power is restricted.