Drinking Milk Products in Romania

2021 DEVELOPMENTS

Slower growth in the dominant category of cow’s milk as COVID-19 impact wanes

2021 saw cow’s milk remain the dominant category of drinking milk products, with milk alternatives the only other category able to generate more than 1% of total volume sales of drinking products during the year. As such, trends in cow’s milk tend to determine overall trends in drinking milk products to a large extent and in 2021 this meant a significant slowdown in sales growth after the strong uplift seen in demand for cow’s milk over the course of 2020.

A strong performance for goat milk due to its purported health benefits

Goat’s milk recorded another year of double-digit volume growth during 2021 as the purported health benefits of this product enable it to generate stronger interest among a wide range of Romanian consumers. Although the availability of goat milk came under pressure during 2020 as the COVID-19 pandemic caused due to fears of contagion interruptions to supply chains whilst also discouraging consumers from shopping in major distribution channels for goat milk such as supermarkets and hypermarkets, the healthy profile of goat milk means that demand has continued to rise.

A dynamic performance for milk alternatives as consumers look for healthy options

Milk alternatives was again the most dynamic category of drinking milk products in 2021. The very strong growth that was seen in the category during the year was essentially a continuation of the excellent performances that were seen throughout the review period.

PROSPECTS AND OPPORTUNITIES

Cow’s milk set to dominate as competition continues to come from unpackaged milk

Cow’s milk can be expected to continue dominating sales of drinking milk products in Romania throughout the forecast period, with full fat cow’s milk slated to the be the most dynamic format in the category. In recent years, rising demand for full fat cow’s milk has been underpinned by the strong and widely-held belief among the Romanian population that natural fats are harmless and this has benefited fresh milk in particular as this product is perceived as being closer to natural fresh milk than other product types as it undergoes less processing than shelf stable milk or powder milk, for instance.

Premium lies ahead as consumers increasingly look for high-quality dairy products

Premiumisation is expected to be one of the most important trends in drinking milk products in Romania over the forecast period. The basis for this shift towards higher-quality products at higher prices was already in evidence towards the end of the review period as the impact of the COVID-19 pandemic led many smaller companies operating in niche areas of coconut products to focus on premium brands in glass packaging.

The dominance of international players unlikely to face serious challenges

International players can be expected to continue dominating sales of drinking milk products over the forecast period. As in other dairy categories, all of the iconic and longstanding local brands in drinking milk products are now owned by major international players.