Edible Oils in Eastern Europe

January 2022

Further strong value growth is expected in 2021 for edible oils in Eastern Europe. However, while growth in 2020 was mainly driven by more home-cooking due to the Coronavirus (COVID-19) pandemic, the 2021 value sales increase will be predominantly due to rising prices. With more moderate price rises expected over the forecast period, more modest growth rates are therefore expected in real value terms.

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Key Findings

Pandemic boosts 2020 growth

In 2020, the pandemic positively affected retail sales of edible oils in both value and volume terms, with home seclusion and foodservice closures increasing consumers’ levels of home-cooking. There was also a certain amount of stockpiling when COVID-19 hit the region. Moving into 2021, even with the virus still present in the region, the home-cooking trend was less prevalent than a year earlier, as consumers were emerging from home seclusion and returning to more active outdoor lifestyles.

Rising prices drive 2021 value growth

While stronger value growth was seen in 2021, volume sales actually declined, showing that the performance in value terms was based, to a large extent, on rising prices. While Russia continued to see unit prices for edible oils ticking upwards, there were particularly strong price rises in Ukraine.

Government sets price limits in Russia

With the Russian sunflower oil market being affected by price rises in 2020, the government and industry players got together to agree price limits to avoid even bigger jumps in prices. The maximum prices at which manufacturing plants could sell one litre of sunflower oil were set at no more than RUB95 for wholesale and RUB110 in retail. These limits remained in place until October 2021.

Dynamic growth expected for other edible oil

Other edible oil is expected to register the strongest CAGR over the forecast period in Russia, as well as Eastern Europe as a whole. At the end of the 2016-2021 period, this category was mostly represented by linseed oil and mustard oil in Russia. The main growth drivers are the trend towards healthy eating and the desire among consumers to experiment and try more exotic options. Interest is also set to continue to grow in options like grape seed oil, avocado oil and oils with pronounced benefits, such as flaxseed, pumpkin and walnut.

Introduction

Scope
Key findings

Regional Overview

Rising prices bump up Eastern European value growth rate in 2021
Modest growth rates expected in the coming years for edible oils
Ukraine becomes the second largest market in 2021
Russian olive oil and Ukrainian sunflower oil drive value growth
Sunflower oil continues to dominate sales in Eastern Europe
Price rises drive value growth in 2021, with volume sales declining
Modern grocery retailers dominate sales of edible oils
E-commerce makes major gains, but remains a minor sales channel

Leading Companies and Brands

Private label holds the biggest share in Eastern European edible oils
Rusagro records strong growth over the 2016-2021 period
Russia the major revenue generator for most of the top 10 players
Zolotaya Semechka remains just ahead of Oleina in 2021

Forecast Projections

As unit price rises slow so too will value growth rates
Organic olive oil will be the most dynamic product area in 2021-2026
Modest annual growth rates expected in Eastern Europe

Country Snapshots

Belarus: Market Context
Belarus: Competitive and Retail Landscape
Bosnia and Herzegovina: Market Context
Bosnia and Herzegovina: Competitive and Retail Landscape
Bulgaria: Market Context
Bulgaria: Competitive and Retail Landscape
Croatia: Market Context
Croatia: Competitive and Retail Landscape
Czech Republic: Market Context
Czech Republic: Competitive and Retail Landscape
Estonia: Market Context
Estonia: Competitive and Retail Landscape
Georgia: Market Context
Georgia: Competitive and Retail Landscape
Hungary: Market Context
Hungary: Competitive and Retail Landscape
Latvia: Market Context
Latvia: Competitive and Retail Landscape
Lithuania: Market Context
Lithuania: Competitive and Retail Landscape
North Macedonia: Market Context
North Macedonia: Competitive and Retail Landscape
Poland: Market Context
Poland: Competitive and Retail Landscape
Romania: Market Context
Romania: Competitive and Retail Landscape
Russia: Market Context
Russia: Competitive and Retail Landscape
Serbia: Market Context
Serbia: Competitive and Retail Landscape
Slovakia: Market Context
Slovakia: Competitive and Retail Landscape
Slovenia: Market Context
Slovenia: Competitive and Retail Landscape
Ukraine: Market Context
Ukraine: Competitive and Retail Landscape
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