Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Baby food; Bakery products; Canned/preserved food; Chilled processed food;
Confectionery; Dairy products; Dried processed food; Frozen processed food;
Ice cream; Impulse and indulgence products; Meal replacement products; Meal
solutions; Noodles; Nutrition/staples; Oils and fats; Pasta; Ready meals;
Sauces; dressings and condiments; Snack bars; Soup; Spreads; Sweet and savoury
snacks
Executive summary
Good growth supported by growing disposable incomes
The Slovak Republic saw good growth in consumers' disposable income levels
during the review period. This resulted in consumers being able to afford a
wider range of packaged food. Products that offered convenience or indulgence
benefited, such as ready meals, confectionery and breakfast cereals. However,
more basic products also saw good growth, such as bread and milk, as
lower-income consumers also benefited from rising income levels.
Premium and healthy launches maintain growth
Players responded enthusiastically to consumers' growing disposable income
levels by investing more in advertising and new product development. In
particular, products aimed to add value, with the increasing use of premium
and healthy ingredients. Nestlé for example launched low-sugar Fitness
granola/muesli bars towards the end of the review period, while Tatranská Mliekaren launched premium Encian Gold creamy melted cheese in easy-slice
packaging and Dracik curd cheese foam.
Nestlé leads fragmented shares
Nestlé continued to lead value sales of packaged food in 2007 but faced strong
competition from domestic players such as Palma-Tumys as and Tatranská Mliekaren as. Overall, packaged food continues to be heavily fragmented, with
numerous strong players in most product areas. While multinationals expanded
their ranges and distribution towards the end of the review period, many
consumers remain loyal to domestic brands, with this resulting in fairly
steady share distribution towards the end of the review period, despite good
growth for packaged food sales.
Supermarkets/hypermarkets face growing competition from discounters
Supermarkets/hypermarkets extended its dominance in value sales of packaged
food in 2008, as the channel continued to expand their presence across the
country. Supermarkets/hypermarkets attracted a growing number of consumers,
thanks to offering a wide range and low prices, along with an expanding range
of private label products. However, supermarkets/hypermarkets faced a growing
challenge from discounters during the review period. This channel also
expanded outlet volume and offered lower prices in comparison with
supermarkets/hypermarkets, thus attracting many price-sensitive Slovakian
consumers.
Stronger constant value growth ahead for forecast period
Constant value growth is expected to increase during the forecast period due
to a number of factors. Production and raw material costs are likely to
continue to increase, with this forcing many players to increase prices.
However, consumers are also expected to trade up, with the launch of premium
and value-added products likely to attract attention. The Slovak Republic is
expected to see only a slight economic downturn at the start of the forecast
period, with a swift return to growth likely to result in continuing growth in
income levels. In turn this will encourage consumers to trade up within
packaged food and to buy more and a wider range of products. However, constant
value growth is expected to be constrained during the forecast period by the
continuing rise of private label and the ongoing growth of discounters in
terms of distribution share.
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