Poland Food & Drink Report Q3 2013 - New Market Report

Weighed down by both internal and external factors, such as elevated unemployment levels and issues facing the wider eurozone, Poland's economy has been slowing down of late, and so has private consumption. While discount store operators may benefit from increased volumes of trade, downward pressure on prices will likely intensify. Nevertheless, we remain optimistic about the longer-term outlook for Polish food and drink consumers.

Headline Industry Data (local currency)

* 2013 per capita food consumption growth = +3.49%; forecast compound annual growth (CAGR) to 2017 = +4.95%.
* 2013 alcoholic drinks sales value growth = +4.08%; forecast CAGR to 2017 = +5.09%.
* 2013 soft drinks sales value growth = +5.35%; forecast CAGR to 2017 = +7.47%.
* 2013 mass grocery retail sales growth = +6.69%; forecast CAGR to 2017 = +7.67%.

Full Report Details at
- http://www.fastmr.com/prod/664926_poland_food_drink_report_q3_2013.aspx?afid=301

Key Industry Trends

Foreign Companies Expand In Poland: Despite a near-term weakness, Poland is expected to remain a key European food and drink manufacturing base. Illustrating our view, in March 2013, Finnish packaging producer Walki announced plans to open a third production facility in Poland following an increase in demand from Eastern Europe, Beverage Daily reported. The company has stated that the site in south-west Poland will enable it to be closer to its customers, offering shorter lead times and an expanded product base. Production is expected to begin during Q313.

Polish Vodka Consumption on Decline, But Exports to US Positive: Nielsen research published in Q113 suggests that the consumption of vodka in Poland has suffered significantly due the adverse economic conditions, and also due to a general shift towards the consumption of other types of alcoholic beverages, such as wine and flavoured spirits. Nielsen's data stipulate that domestic sales of vodka fell by a year-onyear (y-o-y) margin that was slightly below the decline in volumes. Nevertheless, on a positive note for domestic vodka producers, exports of vodka to the US rose by 15.3% in the first nine months of 2012.

Risks To Outlook

External Environment Risks: At present, our forecasts incorporate our expectations for a stabilisation in the economy in H213, underpinned primarily by an improvement in German manufacturing. Indeed, should a recovery in German manufacturing not emerge in the second half of the year, Polish growth would be highly likely to disappoint to the downside, given the high level of trade integration between the two economies.

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Ireland Food & Drink Report Q3 2013
- Croatia Food & Drink Report Q4 2013
- Kuwait Food & Drink Report Q3 2013
- Brazil Food & Drink Report Q4 2013
- Germany Food & Drink Report Q3 2013