Fortified/Functional Packaged Food in Poland

PROSPECTS

Mediocre prospects for growth

Fortified/functional is expected to continue to register positive retail value growth over the forecast period due to increasing interest in healthy lifestyles, innovations and companies’ attempts to compete by improving product formulas and adding extra ingredients. However, growth will be hindered by gradual saturation and competition from other new HW products, often launched as a substitute for FF products, which will cause a shift in demand from FF packaged food to these HW products – as exemplified by the trend for gluten-free products, organic or naturally healthy.

Healthy growth expected in FF snack bars and FF dairy

FF cereal and energy bars are set to continue to register healthy retail value growth over the forecast period, albeit from low bases. Added-value features and competitive prices will help the products to take sales from traditional, non-HW products such as snack bars, chocolate confectionery and savoury snacks.

Strong impact of ageing population on FF products

The number of persons aged over 65 is predicted to increase significantly over the next five years. Higher disposable incomes among this consumer group due to improvement in the economy will be spent on more premium and healthier FF packaged food products.

COMPETITIVE LANDSCAPE

Dominance of multinationals

International players Nestlé Polska SA and Nutricia Polska Sp zoo led the category in 2017. These players benefited from extensive know-how, implementation of successful strategies from Western countries and wide product ranges.

Need for focus on informative marketing

Typically, consumers were unaware of the benefits of products consumed, which presents opportunities for growth. Multinational players such as Nestlé, Danone and Unilever are expected to invest more in advertising to boost per capita consumption of FF packaged food and increase their sales, due to growing competition from private label.

Legislative issues

Legislation regarding claims about the functional properties of products affected the marketing of existing brands. There was a shift from precise descriptions of expected effects (such as “loss of weight” or “improvement of concentration”) to more general descriptions such as “wellbeing” and “a balanced diet is required to maintain a healthy lifestyle”.

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