Executive Summary

Aug 2019
Prospects
Interest grows in higher-quality cheeses which are relatively new to Poland

In parallel with Poland’s increasing wealth and developing economy, consumer interest in less common and atypical types of cheese is growing. Traditionally popular types such as Gouda and Edam are becoming slightly less popular in favour of Camembert, Salami, Mozzarella and Emmental in unprocessed cheese.

Strong growth of packaged cheese due to its convenience

While consumption of hard cheese continued to increase in 2019, there was an interesting difference between that of unpackaged and packaged cheese. The latter recorded much stronger retail volume growth, with packaged hard cheese boosting growth of cheese in general.

New spreadable processed cheese products take advantage of lower interest in margarine

Spreadable processed cheese benefited from the declining interest in margarine in 2019, as customers sought more flavoursome and potentially healthier alternatives. Taking advantage of this, SM Mlekovita, one of the leaders in butter, launched a spreadable processed cheese under its Wypasione umbrella brand in September 2018.

Competitive Landscape
Innovation focuses on packaging to suit the rapid pace of life

After recent packaging innovations focusing on resealable packs or portioning, a new trend was observed in 2018/2019, with spreadable processed cheese becoming available in packaging suitable for on-the-go consumption. In 2018 Hochland Polska introduced a pack type addressing on-the-go trend with four connected containers of 30g each.

Retailers introduce cheese sticks

Other processed cheese in Poland was traditionally characterised by processed cheese in slices designed for grilling or toasting. However, cheese sticks are becoming increasingly popular in Poland, as discounters introduce the format under their private label ranges, including Lidl Polska Sklepy Spozywcze’s Bluedino and Biedronka’s Miami.

Private label increases share thanks to discounters’ widening range of imports

Private label combined held the largest retail value share of cheese and recorded strong growth in 2019. Discounters in Poland are at the forefront in terms of introducing foreign products and the private label lines in this channel are often the most widely available and cheapest option when consumers are seeking products which are less traditional in Polish cuisine, such as Parmigiano cheese, which is offered by the Biedronka and Lidl private label ranges.

Prospects
Bright prospects for milk alternatives and lactose free milk

Soy drinks and other milk alternatives are expected to perform strongly over the forecast period. Growth will be boosted by an increasing number of health-orientated consumers, vegetarians avoiding milk, and vegans.

Fresh milk increasingly popular due to wider availability

Polish consumers are increasingly aware of the health benefits of fresh milk, leading fresh milk to record stronger retail volume growth than shelf stable milk over the review period and into 2019. An additional important factor is the growing availability of packaged fresh milk in rural areas.

Production of cow’s milk to be supported by the government

Cow’s milk will undoubtedly remain the largest category within drinking milk products over the forecast period and indeed one of the largest industries in Poland. The industry is heavily interwoven with Polish and European laws, regulations and global trends.

Competitive Landscape
Domestic manufacturers dominate thanks to strong distribution and brand loyalty

Sales of drinking milk products in Poland in 2019 were led by two domestic local milk companies, namely SM Mlekpol and SM Mlekovita. They have each cemented their leadership through well-developed distribution networks, their long presence in Poland, low costs of production due to direct cooperation with domestic farmers, and extensive advertising campaigns, resulting in similar value shares at the end of the review period.

Consolidation expected within milk

The competitive landscape within milk may witness high levels of consolidation over the forecast period. Domestic players, which form the majority of the competitive landscape, are already discussing the need for consolidation.

Alpro remains the leading brand in milk alternatives despite losing share

Alpro, locally managed by Sante A Kowalski, remained the leading brand in milk alternatives in 2019, mainly due to its strong position in soy drinks. The brand offers a wide portfolio of products consisting of various flavours and formats of milk alternatives, although its main competitive advantage is its long history in the country which has led to strong brand recognition.

Prospects
Private label introduces new sour milk products

Kefir has a long history and well-established position within sour milk products in Poland and for many years there were few alternatives available other than buttermilk and plain sour milk. However, Turkish ayran yoghurt drink has recently been introduced nationally by Lidl Polska Sklepy Spozywcze under its Pilos private label line.

Drinking and plain yoghurt benefit from hectic lifestyles and the health and wellness trend

Plain yoghurt is regarded as a healthy choice and benefits from the health and wellness trend. It is a major part of a balanced diet, while drinking yoghurt additionally benefits from the snacking and on-the-go consumption trends.

Low prices can discourage players from investing in innovation

The low price levels of yoghurt and sour milk products can prevent players from developing new product formats. One interviewed company had considered launching fortified/functional yoghurt in the form of shots, but, in order to be profitable, its price would have to be well above the average price of fortified/functional products and the player felt that Polish customers would probably therefore not be interested.

Competitive Landscape
Zott Polska extends its lead thanks to trend-led innovation

Danone led yoghurt and sour milk products until 2018 when Zott Polska replaced it as the leading player. Although Danone controls a wide portfolio of products and well-known brands in yoghurt and sour milk products, such as Danone, Actimel, Activia, Fantasia and Kefir, it is losing its grip on sales in Poland due to a lack of innovative ideas to distinguish its products and apply them to contemporary consumers.

Growth supported by new products and formats

Retail volume growth of yoghurt and sour milk products has been supported by introducing new variants of existing products. Greek yoghurt was the first example of this, and towards the end of the review period skyr entered the country.

Private label loses share as brands compete on price

Although private label has a strong share in yoghurt and sour milk products, it does struggle to compete with the major players. Price competition is intense between the leaders, Zott Polska, Danone and Bakoma, and thus private label can lose its competitive advantage, especially as some consumers still regard private label products as being of lower quality.

Prospects
Fromage frais and quark benefits from hectic lifestyles and the health trend

Fromage frais and quark benefited from the health and wellness and on-the-go trends in 2019, with plain cottage cheese in convenient 200g packaging, for example, becoming a direct competitor and healthy alternative to chilled dairy desserts or flavoured yoghurt. To take advantage of these trends producers introduced a variety of innovative variants, such as OSM Piatnica with a 2019 high-protein version of its Serek Wiejski cottage cheese.

Lactose free other dairy products increasingly popular and available

Lactose free cottage cheeses such as Serek Wiejski Bez Laktozy by OSM Piatnica and Mlekovitka Serek Wiejski Bez Laktozy by SM Mlekovita recorded strong growth in 2019 due to increased availability in the leading discounters and convenience stores. Lidl Polska Sklepy Spozywcze and Biedronka also offer lactose free variants and are increasing the awareness of these products.

Chilled dairy desserts records mediocre retail volume growth with little innovation

Chilled dairy desserts is a mature category and recorded mediocre retail volume growth in 2019. With only two players with significant shares, Zott Polska and Bakoma, both acknowledged and with well-established brands, competition is less intense than in other dairy categories with little incentive for innovation.

Competitive Landscape
Innovation in chilled snacks including chilled countlines

Previously only regular chilled snacks in the form of milk sandwich types were available in Poland. Some private label owners, including Lidl Polska Sklepy Spozywcze and Biedronka, have recently introduced chilled snacks consisting of a sweet curd, often covered in chocolate, in the form of a chilled countline.

Other dairy is heavily fragmented with many specialist players

Compared to yoghurt, drinking milk products or cheese, other dairy boasts a fairly large number of companies, with only the two leaders, OSM Piatnica and SM Mlekpol, holding double-digit retail value shares in 2019. The fragmentation results from the variety of products within other dairy where producers do not compete with each other across categories, but instead focus on their own speciality: chilled and shelf stable desserts is led by Zott Polska, chilled snacks is dominated by Ferrero Polska, coffee whiteners is led by Maspex GMW, while SM Gostyn has strong lead in condensed milk.

Private label benefits from offering low-priced fromage frais and quark and cream

The combined retail value share of private label increased in 2019 due to its wide presence in the generic categories of cream and fromage frais and quark, where its lower price point is a serious advantage as consumers see little differentiation in these categories between private label and branded products. Discounters and supermarkets are the most popular retail channels for other dairy, and most offer private label lines in the category.

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Overview

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

The Dairy in Poland 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 Poland?
  • What are the major brands in Poland?
  • 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.

Dairy in Poland - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

Price growth of butter eases, leading to moderate volume growth
Butter is increasingly regarded as healthier than margarine
Price rises may remain an issue in butter

COMPETITIVE LANDSCAPE

Butter and spreads is highly fragmented, with strong regional players
Growth for private label benefits from small local suppliers
Good potential for international players

CATEGORY DATA

Table 1 Sales of Butter and Spreads by Category: Volume 2014-2019
Table 2 Sales of Butter and Spreads by Category: Value 2014-2019
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2014-2019
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2014-2019
Table 5 NBO Company Shares of Butter and Spreads: % Value 2015-2019
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2016-2019
Table 7 Distribution of Butter and Spreads by Format: % Value 2014-2019
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2019-2024
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2019-2024
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2019-2024
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2019-2024

Cheese

HEADLINES

PROSPECTS

Interest grows in higher-quality cheeses which are relatively new to Poland
Strong growth of packaged cheese due to its convenience
New spreadable processed cheese products take advantage of lower interest in margarine

COMPETITIVE LANDSCAPE

Innovation focuses on packaging to suit the rapid pace of life
Retailers introduce cheese sticks
Private label increases share thanks to discounters’ widening range of imports

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2014-2019
Table 13 Sales of Cheese by Category: Value 2014-2019
Table 14 Sales of Cheese by Category: % Volume Growth 2014-2019
Table 15 Sales of Cheese by Category: % Value Growth 2014-2019
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019
Table 17 Sales of Unprocessed Cheese by Type: % Value 2014-2019
Table 18 NBO Company Shares of Cheese: % Value 2015-2019
Table 19 LBN Brand Shares of Cheese: % Value 2016-2019
Table 20 Distribution of Cheese by Format: % Value 2014-2019
Table 21 Forecast Sales of Cheese by Category: Volume 2019-2024
Table 22 Forecast Sales of Cheese by Category: Value 2019-2024
Table 23 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024
Table 24 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

Drinking Milk Products

HEADLINES

PROSPECTS

Bright prospects for milk alternatives and lactose free milk
Fresh milk increasingly popular due to wider availability
Production of cow’s milk to be supported by the government

COMPETITIVE LANDSCAPE

Domestic manufacturers dominate thanks to strong distribution and brand loyalty
Consolidation expected within milk
Alpro remains the leading brand in milk alternatives despite losing share

CATEGORY DATA

Table 25 Sales of Drinking Milk Products by Category: Volume 2014-2019
Table 26 Sales of Drinking Milk Products by Category: Value 2014-2019
Table 27 Sales of Drinking Milk Products by Category: % Volume Growth 2014-2019
Table 28 Sales of Drinking Milk Products by Category: % Value Growth 2014-2019
Table 29 NBO Company Shares of Drinking Milk Products: % Value 2015-2019
Table 30 LBN Brand Shares of Drinking Milk Products: % Value 2016-2019
Table 31 Distribution of Drinking Milk Products by Format: % Value 2014-2019
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Volume 2019-2024
Table 33 Forecast Sales of Drinking Milk Products Products by Category: Value 2019-2024
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2019-2024

Other Dairy

HEADLINES

PROSPECTS

Fromage frais and quark benefits from hectic lifestyles and the health trend
Lactose free other dairy products increasingly popular and available
Chilled dairy desserts records mediocre retail volume growth with little innovation

COMPETITIVE LANDSCAPE

Innovation in chilled snacks including chilled countlines
Other dairy is heavily fragmented with many specialist players
Private label benefits from offering low-priced fromage frais and quark and cream

CATEGORY DATA

Table 36 Sales of Other Dairy by Category: Volume 2014-2019
Table 37 Sales of Other Dairy by Category: Value 2014-2019
Table 38 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 39 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 40 Sales of Cream by Type: % Value 2014-2019
Table 41 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 42 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 43 Distribution of Other Dairy by Format: % Value 2014-2019
Table 44 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 45 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Private label introduces new sour milk products
Drinking and plain yoghurt benefit from hectic lifestyles and the health and wellness trend
Low prices can discourage players from investing in innovation

COMPETITIVE LANDSCAPE

Zott Polska extends its lead thanks to trend-led innovation
Growth supported by new products and formats
Private label loses share as brands compete on price

CATEGORY DATA

Table 48 Sales of Yoghurt and Sour Milk Products by Category: Volume 2014-2019
Table 49 Sales of Yoghurt and Sour Milk Products by Category: Value 2014-2019
Table 50 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2014-2019
Table 51 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2014-2019
Table 52 Sales of Flavoured Yoghurt by Flavour: Rankings 2014-2019
Table 53 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2015-2019
Table 54 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2016-2019
Table 55 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2014-2019
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024
Table 57 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2019-2024
Table 58 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2019-2024
Table 59 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-2024

Packaged Food in Poland - Industry Overview

EXECUTIVE SUMMARY

Rising disposable incomes and health-consciousness contribute to growth
Changes in lifestyle determine dynamics
Strong competition between international and local players, as well as private label
Expansion leads discounters to take share from other modern grocery retailers
Health and wellness trends and rising incomes set to contribute to growth

FOODSERVICE

Sales to Foodservice
Foodservice operators follow the major packaged food trends from retail
Customers value local suppliers and products
Opportunities for sales of ice cream to foodservice
Consumer Foodservice
Rising incomes and changing lifestyles fuel the development of consumer foodservice
New business models are thriving in the country
The use of technology to cut costs and give foodservice players an advantage
Category Data
Table 60 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 61 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 62 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 63 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 64 Sales of Packaged Food by Category: Volume 2014-2019
Table 65 Sales of Packaged Food by Category: Value 2014-2019
Table 66 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 67 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 68 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 69 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 70 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 71 Penetration of Private Label by Category: % Value 2014-2019
Table 72 Distribution of Packaged Food by Format: % Value 2014-2019
Table 73 Distribution of Packaged Food by Format and Category: % Value 2019
Table 74 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 75 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 76 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 77 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

DEFINITIONS

SOURCES

Summary 1 Research Sources