Executive Summary

Aug 2018
Prospects
Estonians show growing interest in foreign cheese products

According to statistics from the Bank of Estonia, Estonians visited foreign countries 3.7 million times in 2017, which is a huge number when the size of the population is taken into consideration.

Rising health awareness benefits small local cheese producers

In line with global trends, Estonians increasingly prefer more natural and health-oriented packaged food products. This has resulted in growing demand for cheese products from small local producers, which look set to continue gaining ground in this category over the forecast period.

Speciality cheese shops gain popularity

The vast majority of Estonians buy cheese from supermarkets or hypermarkets, with most preferring locally produced packaged and pre-sliced products. However, specialty cheese shops are also gaining popularity, especially among more demanding consumers.

Competitive Landscape
Large local manufacturers continue to lead cheese

Estover OÜ continued to lead cheese in value terms in 2018. The success of this company is based on its wide selection of locally produced hard cheese products.

Competitive environment remains relatively fragmented

The top three companies in cheese accounted for a large combined share of retail current value sales in 2018. However, the remainder of the category remained quite fragmented, with a wide and diverse selection of local and foreign products present.

Prospects
Estonians continue to favour full fat fresh milk

Estonians traditionally prefer full fat fresh milk. The most popular fresh milk products on retail shelves typically have a fat content of 2.

Global trend for organic drinking milk products reaches Estonia

Organic dairy products in Estonia has historically been a relatively niche area dominated by farms and smaller manufacturers. However, in 2018 Saaremaa Piimatööstus became the first large dairy manufacturer in the country to launch organic drinking milk products.

Fresh milk remains much more popular than shelf stable varieties

Fresh milk products are widely available via grocery retailer outlets of all types and sizes in Estonia. Shelf stable milk meanwhile is considerably less popular, and distribution of this niche product type is mainly confined to bigger supermarkets outlets.

Competitive Landscape
Future of Tere remains unclear

While Tere continued to lead drinking milk products in value terms in 2018, the company’s restructuring was still ongoing. MAAG Grupp AS, the owner of Farmi Piimatööstus, acquired the loan claims of the biggest creditors of Tere and its related companies in spring 2017.

Local manufacturers remain dominant

Drinking milk products in Estonia is dominated by local manufacturers. These include Valio Eesti, which belongs to larger international group Valio Oy but is considered a local manufacturer due to its maintenance of a production site in Estonia.

Competitive environment remains highly consolidated

Drinking milk products remained highly consolidated in 2018, with top three players Tere, Valio Eesti and Farmi Piimatööstus accounting for the lion’s share of retail current value sales. Farmi Piimatööstus was the most dynamic of these players in current value growth terms, while Tere continued to see its value share decline due to the negative publicity and uncertainty surrounding its restructuring process.

Prospects
High-fat yoghurt products gain popularity

The trend towards eating low-calorie and low-fat foods has largely passed in Estonia. When it comes to yoghurt and other dairy categories, consumers now increasingly favour products that are made with natural ingredients and high in fat.

Sour milk products remain popular despite growing threat from drinking yoghurt

Sour milk products continue to hold a strong position in Estonia. Buttermilk and kefir have played an important role in Estonian cuisine for decades, and traditional varieties of these product types remain popular among older people.

Innovation picks up in yoghurt

Flavoured yoghurt in Estonia offers a huge number of different products in a variety of pack sizes. While large and small manufacturers in the category are constantly active in terms of new product development, genuine innovations have historically been relatively rare.

Competitive Landscape
Local manufacturers dominate yoghurt

Local manufacturers dominate yoghurt in Estonia. Estonians traditionally prefer the taste of locally manufactured yoghurt products, and also consider them to be healthier than imported alternatives.

Sour milk products remains highly consolidated

Tere, Valio and Farmi Piimatööstus remained the top three players in sour milk products in 2018, and together accounted for the lion’s share of the category’s retail current value sales. As in yoghurt, leading company Tere saw its value share decline over the review period due to negative publicity arising from its financial problems and restructuring efforts.

Valio launches new high protein drinking yoghurt products

The PROfeel range was launched by Valio in 2015, and quickly gained popularity among health-conscious consumers in Estonia. In late 2017 this range was expanded with the launch of PROfeel protein drinking yoghurt in a number of flavours.

Prospects
Growing preference for natural, high-fat products creates opportunities for curd

Estonia has a long history of curd production. For centuries, almost every farm in the country made its own curd.

Positive development of cream set to continue

Cream is widely used in Estonia. Depending on the fat content, it is used in the preparation of desserts and sauces, or as a coffee whitener.

Outlook for chilled dairy desserts and chilled snacks remains bright

Chilled dairy desserts and chilled snacks remain popular among Estonians. For example, Glasuurkohuke (glazed curd snack), which is considered a local specialty, appeals to consumers of all ages.

Competitive Landscape
Local players continue to dominate fromage frais and quark

Domestic manufacturers continued to dominate fromage frais and quark in Estonia in 2018, reflecting the traditionally strong consumer preference for products of local origin in this category. Tere remained the leading player in value terms, closely followed by Farmi Piimatööstus.

International companies maintain strong presence in chilled snacks

Ferrero SpA remained the clear leader in chilled snacks in value terms in 2018. Its famous Kinder Pingui brand and other Kinder products are especially popular among children and young teenagers in Estonia.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Estonia 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 Dairy industry in Estonia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Estonia 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 Dairy in Estonia?
  • What are the major brands in Estonia?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

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.

Butter and Spreads

Cheese

Drinking Milk Products

Other Dairy

Yoghurt and Sour Milk Products

Packaged Food in Estonia - Industry Overview

EXECUTIVE SUMMARY

Increase in living standards supports the development of packaged food
Increased consumer purchasing power supports manufacturers
Successful players follow the trends
Competition remains intense among grocery chains
Positive outlook for the economy to support sales

FOODSERVICE

Sales to Foodservice
Changes in consumer habits also impact foodservice suppliers
Sanitex and Kaupmees continue to lead
Importance of the as-cheap-as-possible strategy diminishes
Category Data
Table 1 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 5 Sales of Packaged Food by Category: Volume 2013-2018
Table 6 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 7 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 8 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 9 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 10 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 11 Penetration of Private Label by Category: % Value 2013-2018
Table 12 Distribution of Packaged Food by Format: % Value 2013-2018
Table 13 Distribution of Packaged Food by Format and Category: % Value 2018
Table 14 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 15 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 16 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 17 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources