health and wellness trends in food and drinks in eastern europe

HEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPEVITAFOODS EUROPE 2016, GENEVA

JOANA SOKOLNIK, FOODS AND NUTRITION ANALYST

MAY, 2016

http://www.euromonitor.com/

ABOUT EUROMONITOR INTERNATIONAL

HEALTH AND WELLNESS IN EASTERN EUROPE VS WESTERN EUROPE

EASTERN EUROPE IN DETAILS: TRENDS AND DEVELOPMENTS

FUTURE DRIVERS AND CONSTRAINTS


© Euromonitor International

3HEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

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4

The Structure of Health and WellnessHEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

Food Intolerance

Organic

Fortified/Functional

Better For You

Naturally Healthy

This presentation is based on:

Market data from health and wellness within processed packaged food and non-alcoholic beverages

The aggregated data of Eastern European and Western European countries

Heal

th a

nd W

elln

ess



5

€167 billionvalue sales (2015)

+16%value growth (2010-2015)

€ 204per capita

spending (2015)

The State of Health and Wellness in EuropeHEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

*retail value sales, current 2015 prices, EUR, fixed exchange rate



6

The State of Health and Wellness: Western Europe vs Eastern EuropeHEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

€27 billionvalue sales in 2015

+41%value growth (2010-2015)

€83 per capita spending

€140 billionvalue sales in 2015

+13%value growth (2010-2015)

€284 per capita spending




7

Western Europe Eastern Europe

2010 2011 2012 2013 2014 20150%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Non Health and Wellness Food and BeveragesHealth and Wellness Food and Beverages

Yea

r-on

-Yea

r V

alu

e G

row

th

2010 2011 2012 2013 2014 20150%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%


Yea

r-on

-Yea

r V

alu

e G

row

th

Health and Wellness vs Non Health and Wellness Value Sales Growth HEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE




8

Western Europe Eastern Europe

80%

20%


86%

14%


Health and Wellness vs Non Health and Wellness Value Sales in 2015HEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

*retail value sales, %



9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

27%

2%

21%

40%

9%

Western Europe

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

26%

1%

22%

50%

1%

Eastern Europe

Organic

Naturally Healthy

Fortified/Functional

Food Intolerance

Better For You

Health and Wellness: Value Split by Type in 2015HEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

€140 billiontotal value sales in 2015

€27 billiontotal value sales in 2015




10

Eastern Europe in Details: Leading CountriesHEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

Russia Poland Romania Hungary Czech Republic Ukraine Slovakia Bulgaria0

2,000

4,000

6,000

8,000

10,000

12,00011,884.9

4,420.8

1,541.4 1,413.6 1,375.5 1,309.4592.7 558.7

Retail Value Sales of Health and Wellness in 2015 €, billion

Hungary Czech Republic Poland Slovakia Russia Romania Bulgaria Ukraine0

20

40

60

80

100

120

140144

131115 109

83 78 78

29

Per Capita Annual Spending on Health and Wellness in 2015€




11

Health and Wellness in Eastern Europe : Value Growth in Selected CountriesHEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE


2010 2011 2012 2013 2014 20150

2

4

6

8

10

12

14

16

18

Czech RepublicHungaryPolandRomaniaRussia

Yea

r-on

-Yea

r gr

owth

, %



12

Health and Wellness in Eastern Europe: Value Split by CategoryHEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

HW Beverages HW Packaged Food

Bottled Water40%

Juice21%

Tea14%

Sports and

Energy Drinks

12%

Car-bon-ates4%

Others9%

Dairy36%

Con-fectionery

12%

Baked Goods12%

Baby Food9%

Oils and Fats

8%

Break-fast Cereals

7%

Sweet and

Savoury Snacks

7%

Others8%



13

Health and Wellness by Type: 2010-2015 Growth in Eastern EuropeHEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

*CAGR (Compound Annual Growth Rate); **retail value sales, current 2015 prices, EUR, fixed exchange rate

Better For You (BFY)

Food Intolerance

Fortified/Functional (FF)

Naturally Healthy (NH)

Organic

0 2 4 6 8 10 12

2010-15 CAGR, %



14

Main characteristics and trends of Health and Wellness in Eastern EuropeHEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

Growing health concerns and increased consumer awareness

Good growth due to low base of the market

Gradually increasing attention of consumers to health and wellness labels

Good performance of Food Intolerance and Organic

Still lack of the trust of the health claims

High prices of products labelled as health and wellness

Outstanding share of Naturally Healthy products

Domestically produced is important

Protein focus

Healthy convenience



15

Forecast value growth in Eastern Europe 2016-2020HEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE

2016 2017 2018 2019 20200

1

2

3

4

5

6

Health and Wellness by Type Better For You (BFY) Food Intolerance Fortified/Functional (FF) Naturally Healthy (NH) Organic

Yea

r-o

n-Y

ear

Gro

wth

, %



16

Better For You

• Reduced Sugar Fruit/Vegetable Juice

• Reduced Sugar Cakes

Food Intolerance

• Free From Lactose Dairy

• Free From Gluten Sweet Biscuits

Fortified / Functional

• FF Bread• FF Reduced Fat

Milk• FF Energy

Drinks

Naturally Healthy

• NH Soy-based Meat Alternatives

• NH Snack Bars• NH Superfruit

Juice

Organic

• Organic Concentrates

• Organic Ice Cream and Frozen Desserts

• Organic Chilled Processed Meat and Seafood

Well-performing product categories to comeHEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE



17

Low market saturationGrowing public health concerns Growing interest in fortified and naturalGrowing disposable incomes in most of Eastern European countriesPositive long-term macroeconomic forecast in RussiaGrowing involvement of local manufacturers and retailersGovernmental support of healthcare development

Lack of understanding on the benefits of HWHigh price, especially in organic and food intoleranceCurrent weak economic development in Russia and Ukraine

Future drivers and constrains in Eastern EuropeHEALTH AND WELLNESS TRENDS IN FOOD AND DRINKS IN EASTERN EUROPE


THANK YOU FOR LISTENING

Joana SokolnikResearch Analyst – Foods & NutritionEuromonitor International [email protected]: + 370 5 243 1577 ext: 4784


mailto:[email protected]


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