Organic Packaged Food in Romania

PROSPECTS

Growth in organic packaged food is driven by rising purchasing power and the increase of affordable options

Sales of organic packaged food saw high levels of growth in 2019, the result of increasing purchasing power that allowed the products to be available to mass consumers. Affordability improved as prices remained relatively stable or only saw inflationary increases, while average incomes substantially enhanced.

Organic dairy leads value sales in 2019, benefiting from strong distribution and advertising across the country

FrieslandCampina Romania SRL was the first to launch in 2016, offering the popular Napolact Bio, at price-points that made it an attractive offering to mass consumers. The success of Napolact Bio encouraged other strong players to launch their own organic varieties, including Zuzu Lapte Bio from Albalact SA, Covalact de Tara Bio from Covalact SA and Olympus Bio from Fabrica de Lapte Brasov SA.

Artisanal products sold from farms is a threat to organic packaged foods – even though some of these products are falsely advertised as organic

The biggest threat to organic food comes from artisanal products, sold directly from farms. These products, even if they are not certified as organic, attract consumers due to their perceived health benefits and freshness.

COMPETITIVE LANDSCAPE

FrieslandCampina Romania retains its lead, benefiting from wide availability and the advantage of having the first entrant in organic dairy

FrieslandCampina Romania retained its lead in organic packaged food in 2019, thanks to the organic variant of its flagship brand, Napolact Bio. The players has the advantage of the first entrant in organic food across several dairy products, with the extension of Napolact, being very popular and appreciated by Romanians.

Dorna Lactate SA remains in second place, following the example of FrieslandCampina Romania by offering an organic version of its popular line La Dorna

Following the example of Napolact, top players in dairy such as Covalact SA, Albalact SA and Dorna Lactate SA added to lines already on the landscape, such as La Dorna Bio. As Lactalis owns all three of these players, competition between leading player FrieslandCampina and Lactalis is expected to increase over the forecast period.

Private label ranges offer affordable quality, as modern grocery retailers allocate more shelf space to organic packaged food

The presence of private label in organic food increased substantially after modern grocery retailers allocated more shelf space to more specialised organic packaged food products, over the review period.

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