Executive Summary

Aug 2018
Prospects
Higher incomes stimulate sales

The performance of cheese in 2018 was the result of the improved average incomes that enabled consumers to return to packaged cheese at the expense of unpackaged. The preferred traditional soft cheese within Romanian’s meals, “telemea”, and hard cheese were mainly responsible for the performance of the category.

Packaged hard cheese most dynamic in volume terms

Packaged hard cheese was most dynamic in volume terms in 2018 as a result of the recovery in incomes, which allowed consumers to pay greater attention to a product perceived as more sophisticated. The presence of domestic varieties, such as Dalia, Rucar, Penteleu and Dobrogea, stimulated consumption among some of the population enjoying higher incomes and upgrading their purchases.

Traditional “telemea” is most popular type of cheese

“Telemea” in soft cheese was by far the best-selling cheese in Romania in 2018 and over the review period. Its popularity across all income segments of the population and throughout the entire country means that “telemea” is a symbol of domestic cheese.

Competitive Landscape
Hochland Romania SRL leads sales

Hochland Romania SRL continued to lead cheese in 2018. The company has succeeded in maintaining its leadership over the review period due to an active presence across the entire category.

International companies rely on local products

International companies ranked above domestic players in 2018. The success came from expanded distribution and easier access to the shelves of modern retailers, but also the adoption of domestic varieties in their portfolios, such as “telemea” or Dalia and Rucar hard cheese.

Domestic companies compete locally

Cheese is rather fragmented, with a large number of domestic regional players and their importance is visible mostly at this level. However, they have succeeded in gaining strong recognition in niche products such as goat milk and have entered modern retailing at a national level.

Prospects
Increasing incomes drive changing lifestyles

The growth of drinking milk products in 2018 was mainly the result of improving incomes, which led to a switch from artisanal fresh milk from different sources to packaged products in retail, the result of expansion by modern retailers and proximity convenience. Unpackaged milk from small farms continued to retain the perception that it is natural and healthy.

Goat milk attracts consumer interest

Goat milk was the best performer in both retail volume and value sales in 2018, which was the result of its increasing reputation of being low in cholesterol, low in fat and resulting in a lower incidence of allergies and digestive discomfort. Goat milk has emerged through the efforts of both international and domestic companies, of which Andechser Molkerei and Fabrica de Lapte Brasov SA were the most prominent.

Demand meets the trend for health and wellness

The burgeoning health and wellness trend was strongly sustained by the improvement in incomes. The main result was the strong growth in full fat fresh milk in 2016-2018, when the increase in disposable income was at its most marked.

Competitive Landscape
Albalact SA retains leadership

Albalact SA retained its leadership of drinking milk products in 2018 due to excellent distribution and advertising campaigns. Advertising supported its brand Zuzu’s overall leadership.

International companies dominate the category

International companies dominated the competitive landscape of drinking milk products in 2018, as there was no purely domestic company present in the top 10 rankings. Lactalis consolidated its position and is present in the leading 10 companies with Albalact SA, Covalact SA and Dorna Lactate SA.

Private label holds a significant position

Private label held an important position in drinking milk products in 2018 due to the domination of retail by modern chains with their affordable prices. Due to the lower selling prices, private label has captured the attention of lower-income urban consumers.

Prospects
Demand for healthy food boosts sales

Yoghurt and sour milk drinks were popular among consumers of all ages and incomes during the review period. The category benefited from established consumption habits, with the 2018 performance also boosted by the consumer perception of the products being natural and healthy.

Drinking yoghurt is the best performer

The best performance of drinking yoghurt in 2018 was the result of higher incomes and changes in lifestyle, especially in large cities with busier lifestyles and where consumers are tempted to reduce the time spent on breakfast, instead showing increasing attention to snacks on the go. Drinking yoghurt has transformed into part of a rapid meal accompanied by other snacks.

Strong popularity of sour milk products

In 2018, sour milk products remained popular in Romania. The traditional “lapte batut” had a significant presence in an unpackaged format.

Competitive Landscape
Danone a strong leader

Danone continued to lead yoghurt and sour milk products in 2018. Its strength within yoghurt has maintained its overall leadership.

International players consolidate their positions

International companies dominated yoghurt and sour milk products in 2018. However, the leading four international players have domestic operations and the consolidation of operations was underway after the acquisition of Albalact SA and Covalact SA by Groupe Lactalis.

Domestic niche players improve visibility and consumer awareness

Small domestic players such as Super Lactis SRL and Novalact SRL have succeeded in gaining greater visibility due to yoghurt and sour milk products made from goat milk under the brands La Colline and Rupi, respectively. Consumer awareness increased due to the improved position of the brands on the shelves of modern retail chains such as supermarkets and hypermarkets.

Prospects
Higher incomes drive the performance of other dairy

Growth in other dairy in 2018 was the result of rising incomes. As consumers in the capital and the large cities are the heaviest consumers of other dairy, the effect of the increase in average incomes was noticeable in the performance of the category.

Fromage frais and quark records the best performance

The strong performance by fromage frais and quark in 2018 was the consequence of a switch by consumers from cheaper homemade mixes of cream and cottage cheese to packaged varieties found under the generic name of Fagaras or as cottage cheese. Enjoying the perception of a suitable and rapid breakfast or office snack, fromage frais and quark benefited from the presence of a large number of manufacturers.

Largest category of cream is the weakest performer

Cream was by far the largest category in other dairy but also the weakest performer in 2018. The main trend in the category was evident in the launch of high fat sour cream targeting Romanians who continue to rely on home cooking and are demanding better and healthier ingredients.

Competitive Landscape
FrieslandCampina Romania leads other dairy

FrieslandCampina Romania retained its leadership of other dairy in 2018. The position of the company was the result of its strength in cream and fromage frais and quark.

International companies create the landscape

International players were dominant in other dairy in 2018. Nationwide distribution, to reach the most remote localities, was the main strategy employed by the leading players.

Advertising supports the new launches

Advertising was focused mainly on new launches, with Zuzu Dolce the main beneficiary of promoting its new launch, while the Kinder Pingui chilled snack was heavily advertised to reinforce recognition and awareness amongst consumers. The smaller categories benefited from the most intense advertising campaigns.

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Dairy in Romania

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Overview

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

The Dairy in Romania 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 Romania?
  • What are the major brands in Romania?
  • 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 Romania - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

Performance is influenced by unit price growth
Butter and margarine are complementary
Unpackaged products are not a threat

COMPETITIVE LANDSCAPE

Unilever retains the leadership
International companies lead category
Private label ranks behind branded players

CATEGORY DATA

Table 1 Sales of Butter and Spreads by Category: Volume 2013-2018
Table 2 Sales of Butter and Spreads by Category: Value 2013-2018
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2013-2018
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2013-2018
Table 5 NBO Company Shares of Butter and Spreads: % Value 2014-2018
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2015-2018
Table 7 Distribution of Butter and Spreads by Format: % Value 2013-2018
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2018-2023
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2018-2023
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2018-2023
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2018-2023

Cheese

HEADLINES

PROSPECTS

Higher incomes stimulate sales
Packaged hard cheese most dynamic in volume terms
Traditional “telemea” is most popular type of cheese

COMPETITIVE LANDSCAPE

Hochland Romania SRL leads sales
International companies rely on local products
Domestic companies compete locally

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2013-2018
Table 13 Sales of Cheese by Category: Value 2013-2018
Table 14 Sales of Cheese by Category: % Volume Growth 2013-2018
Table 15 Sales of Cheese by Category: % Value Growth 2013-2018
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2013-2018
Table 17 Sales of Unprocessed Cheese by Type: % Value 2013-2018
Table 18 NBO Company Shares of Cheese: % Value 2014-2018
Table 19 LBN Brand Shares of Cheese: % Value 2015-2018
Table 20 Distribution of Cheese by Format: % Value 2013-2018
Table 21 Forecast Sales of Cheese by Category: Volume 2018-2023
Table 22 Forecast Sales of Cheese by Category: Value 2018-2023
Table 23 Forecast Sales of Cheese by Category: % Volume Growth 2018-2023
Table 24 Forecast Sales of Cheese by Category: % Value Growth 2018-2023

Drinking Milk Products

HEADLINES

PROSPECTS

Increasing incomes drive changing lifestyles
Goat milk attracts consumer interest
Demand meets the trend for health and wellness

COMPETITIVE LANDSCAPE

Albalact SA retains leadership
International companies dominate the category
Private label holds a significant position

CATEGORY DATA

Table 25 Sales of Drinking Milk Products by Category: Volume 2013-2018
Table 26 Sales of Drinking Milk Products by Category: Value 2013-2018
Table 27 Sales of Drinking Milk Products by Category: % Volume Growth 2013-2018
Table 28 Sales of Drinking Milk Products by Category: % Value Growth 2013-2018
Table 29 NBO Company Shares of Drinking Milk Products: % Value 2014-2018
Table 30 LBN Brand Shares of Drinking Milk Products: % Value 2015-2018
Table 31 Distribution of Drinking Milk Products by Format: % Value 2013-2018
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Volume 2018-2023
Table 33 Forecast Sales of Drinking Milk Products Products by Category: Value 2018-2023
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2018-2023
Table 35 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2018-2023

Other Dairy

HEADLINES

PROSPECTS

Higher incomes drive the performance of other dairy
Fromage frais and quark records the best performance
Largest category of cream is the weakest performer

COMPETITIVE LANDSCAPE

FrieslandCampina Romania leads other dairy
International companies create the landscape
Advertising supports the new launches

CATEGORY DATA

Table 36 Sales of Other Dairy by Category: Volume 2013-2018
Table 37 Sales of Other Dairy by Category: Value 2013-2018
Table 38 Sales of Other Dairy by Category: % Volume Growth 2013-2018
Table 39 Sales of Other Dairy by Category: % Value Growth 2013-2018
Table 40 Sales of Cream by Type: % Value 2013-2018
Table 41 NBO Company Shares of Other Dairy: % Value 2014-2018
Table 42 LBN Brand Shares of Other Dairy: % Value 2015-2018
Table 43 Distribution of Other Dairy by Format: % Value 2013-2018
Table 44 Forecast Sales of Other Dairy by Category: Volume 2018-2023
Table 45 Forecast Sales of Other Dairy by Category: Value 2018-2023
Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2018-2023
Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2018-2023

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Demand for healthy food boosts sales
Drinking yoghurt is the best performer
Strong popularity of sour milk products

COMPETITIVE LANDSCAPE

Danone a strong leader
International players consolidate their positions
Domestic niche players improve visibility and consumer awareness

CATEGORY DATA

Table 48 Sales of Yoghurt and Sour Milk Products by Category: Volume 2013-2018
Table 49 Sales of Yoghurt and Sour Milk Products by Category: Value 2013-2018
Table 50 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2013-2018
Table 51 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2013-2018
Table 52 Sales of Flavoured Yoghurt by Flavour: Rankings 2013-2018
Table 53 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2014-2018
Table 54 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2015-2018
Table 55 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2013-2018
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2018-2023
Table 57 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2018-2023
Table 58 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2018-2023
Table 59 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2018-2023

Packaged Food in Romania - Industry Overview

EXECUTIVE SUMMARY

Economic improvement drives sales of packaged food
Healthier food attracts consumer attention
Artisanal accounts for the majority of sales
Sales dynamics track the expansion of modern grocery retailers
Packaged food to grow over the forecast period

FOODSERVICE

Sales to Foodservice
Manufacturers pay increased attention to foodservice
Ready meals records the strongest growth
Baked goods remain the most popular
Consumer Foodservice
Consumer foodservice tracks the performance of the economy
Fragmentation remains high in consumer foodservice
Rural tourism drives demand for healthy food
Category Data
Table 60 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 61 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 62 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 63 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 64 Sales of Packaged Food by Category: Volume 2013-2018
Table 65 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 66 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 67 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 68 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 69 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 70 Penetration of Private Label by Category: % Value 2013-2018
Table 71 Distribution of Packaged Food by Format: % Value 2013-2018
Table 72 Distribution of Packaged Food by Format and Category: % Value 2018
Table 73 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 74 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 75 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 76 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources