Executive Summary

Aug 2018
Prospects
“Other” processed cheese sees accelerated growth

While soft cheese saw the fastest retail value sales growth in 2017, “other” processed cheese accelerated to register the strongest increase in 2018. This was mainly due to the improved distribution of Mlekoprodukt’s Biser Tofi and Biser Tufi brands, as well as the growing popularity of Delhaize Serbia’s Premia private label line.

Hard cheese remains the best seller, but continues to lose share

Benefiting from high awareness and traditional consumption, as well as higher unit prices, hard cheese continued to lead retail value sales in 2018. However, Serbian consumers have become less conservative in terms of taste and preference, and hard cheese has ceded some retail value share to soft cheese and processed cheese.

Packaged still more popular than unpackaged in hard cheese

Packaged hard cheese is much more popular than unpackaged hard cheese in Serbia. This is partly because of the wider offer of packaged hard cheese in retail stores.

competitive Landscape
Little new product development

Cheese in Serbia was almost dormant in terms of new product development in 2017 and 2018, when almost no notable releases were observed. The only significant new launch came in July 2018, when Imlek introduced Balans+Sir.

Private label continues to grow in popularity

Private label holds a high share of retail value sales in cheese, compared with other dairy categories. Two private label retailers Delhaize Serbia and Mercator - S accounted for significant, and growing, retail value shares over the review period.

Delhaize Serbia sees the fastest growth in retail value sales

The growing popularity of private label in cheese supported Delhaize Serbia, which registered the fastest retail value sales growth in 2018. The other significant private label retailer, Mercator - S, also recorded a strong increase in retail value sales.

Prospects
No change in the permitted aflatoxin level in milk

Serbian officials have decided that the permitted aflatoxin level in milk is to remain at 0.25 micrograms per litre up to the end of 2018.

Cow’s milk remains by far the biggest category

Cow’s milk continued to dominate retail value sales of drinking milk products in 2018. Within the category, shelf stable milk led fresh milk in terms of retail value share and growth.

Goat milk loses momentum

Faster retail volume and value growth in the early review period raised expectations for goat milk in Serbia. However, growth rates quickly decelerated and the range and distribution of goat milk has narrowed rather than widened.

Competitive Landscape
Imlek dominates drinking milk products

Imlek remained the undisputed leader of drinking milk products in retail value terms in 2018, despite a small drop in share. A small share loss is not surprising, given the company’s dominance of the category.

Very few new launches

There were almost no new product launches in drinking milk products from the second half of 2017. The most notable launch came from Imlek, which introduced Moja Kravica Junior in October 2017.

Private label slowly recovers after withdrawal from fresh milk

Private label’s overall retail value share in drinking milk products dropped significantly in 2016, when the two largest grocery retailers in the country, Delhaize Serbia and Mercator - S, decided to discontinue their private label fresh milk lines, 365 and K Plus, respectively. However, the grocery retailers did not withdraw from shelf stable milk and their overall retail shares increased saw a marginal upturn by 2018 due to lower prices and the improving quality reputation of private label in general.

Prospects
Drinking yoghurt confirms its dominance

Serbian yoghurt and sour milk products has been dominated by drinking yoghurt for decades. In 2018, drinking yoghurt extended its lead by recording the highest retail value sales growth.

Plain yoghurt performs well, but starts to lose momentum

Plain yoghurt saw particularly strong retail current value growth in the early review period, although it continued to perform well up to 2018. The category benefited as many of the leading dairy producers entered plain yoghurt.

Flavoured yoghurt sees unit price decline in 2018

Sour milk products, drinking yoghurt and plain yoghurt all saw their average retail current unit prices increase in 2018; however, flavoured yoghurt witnessed a slight decline. Prices of flavoured yoghurt products were unnecessarily high and producers reacted to increasing competition by reducing unit prices in 2018.

Competitive Landscape
Flavoured yoghurt dominates new product launches

Several new product launches were observed from the second part of 2017. Most of the new product development was found in flavoured yoghurt.

Strong private label presence

Private label accounted for a strong retail value share in yoghurt and sour milk products in 2018. The most important private label players, Delhaize Serbia and Mercator - S, are strongest in drinking yoghurt, although they also offer flavoured yoghurt lines.

Growing competition exerts pressure on leaders

In 2018, the leading players in yoghurt and sour milk products registered retail value sales increases as they benefited from the healthy development and growth of the category. However, the top two manufacturers, Imlek and Mlekara, saw a marginal loss in share.

Prospects
Coffee whiteners continues to see fast growth

Coffee whiteners continued to see the fastest retail volume and current value growth in 2018, albeit from a very low sales base. This type of product is not traditionally popular among Serbian consumers, although the consumer base grew throughout the review period.

Intense competition keeps unit price increases below the inflation rate

The average retail current unit price continued to increase in 2018, albeit below the country’s inflation rate. Manufacturers responded to growing competition by limiting unit price increases in order to retain or win over new consumers.

Cream remains by far the biggest category

In 2018, cream continued to lose retail volume and value share, although it remained by far the biggest category. Cream is often used as a condiment with meals, and even more often as a cooking ingredient, which has a long tradition in Serbian households.

Competitive Landscape
Ferrero leads the way

Ferrero maintained its leading position in retail value share terms in 2018, although it came under increasing pressure from Imlek and Mlekara, as well as some smaller producers during the review period. Ferrero continued to record positive retail value sales growth, although its overall share has stagnated.

Only one notable new product launch in 2018

The only significant new product launch came from Imlek in June 2018. The producer introduced an entirely new Balans+ line, which included Balans+ Kisela Pavlaka cream.

TV advertising remains the key marketing strategy

TV advertisements dominated the marketing strategies of other dairy manufacturers in Serbia. The top two players, Ferrero and Imlek, were the most active when it comes to this type of marketing in 2018.

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Overview

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

The Dairy in Serbia 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 Serbia?
  • What are the major brands in Serbia?
  • 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 Serbia - Industry Overview

EXECUTIVE SUMMARY

Convenience trend and health and wellness visibly influence packaged food in 2018
Healthy growth of packaged food recorded in 2018, in line with the review period
Most leading producers see their value share increase in 2018
Modern grocery retailers keep growing at the expense of traditional grocery retailers
Continued growth expected over the forecast period

FOODSERVICE

Sales to Foodservice
Foodservice continues to grow in 2018
No major changes in the competitive landscape
Similar growth expected for the forecast period
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