Food & Drink Industry
Austria
Bord Bia, Frankfurt
November 27th 2008
Austrian Market Overview
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Population: 8.26 million (OECD, 2008)
Capital: Vienna (1.65 million),
Graz (244,537), Linz (188,407) and
Salzburg (148,549).
Inflation rate 3.8% (Statistik, 2008).
GDP-real growth rate 3.3% (OECD,
2006).
Unemployment is falling, currently at
3.4% (Statistik, Q2 2008).
62.1% of the population are aged
between 15-59 (Statistik, 2008).
Austrian Market Overview
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Currency: Euro
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VAT on goods & services: 20%
VAT on Food: 10%
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Global Exports (2007): €114.8 billion (Statistik, 2008)
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Imports (2007): €114.25 billion (Statistik, 2008)
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Top Import partners in 2006: Germany (40.8%), Italy (7%), France
(4.8%), USA (4%), Switzerland (3.3%) and Czech Republic (3.3%)
(OECD, 2008).
Irish Food Export
Performance 2007
Irish Food Exports to Austria for 2007
Beverages
18%
Meat
3%
Dairy
21%
Miscellaneous
edible
38%
Total
Exports:
€11.2 mn
Fish
3%
Other*
5%
Sugars
12%
* Includes cereals, extracts, animal feeds, fruit and vegetables.
Source: CSO Food and Drink Statistics 2007
The Retail Market
2006
2007
2008e
Consumer Spend (€bn)
137.4
143.5
148.8
Total Retail Market (€bn)
45.48
45.60
47.62
Total Grocery Market (€bn)
18.07
18.60
19.06
Grocery as a % of Retail
39.7%
39.8%
40.02
Source: IGD Data centre estimates
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Austria is one of the world’s wealthiest countries, with a CIA (Central Intelligence
Agency, America) ranking of number 16 in terms of GDP per capita (PPP).
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It has above average per capita income, and is the 4th wealthiest country in the EU
with a purchasing power 23% higher than the EU average (Business Location
Austria, 2007).
European & Global Grocery
Retail Market Sizes
Top 10 Western European Markets
Top 10 Global Markets
Country
Grocery Retail
Market
(€bn)
1. France
208.03
1. USA
785.85
2. United Kingdom
185.70
2. China
450.14
3. Germany
144.19
3. Japan
394.45
4. Italy
123.80
4. France
278.33
5. Spain
97.55
5. United Kingdom
249.20
6. Greece
34.58
6. India
249.11
7. Switzerland
32.29
7. Germany
192.92
8. Netherlands
30.68
8. Russia
188.02
9. Italy
165.64
9. Belgium
30.03
10. Spain
130.51
10. Sweden
24.20
33. Austria
24.83
11. Austria
18.56
Source: IGD Country Presentations (2007)
Country
Grocery Retail
Market
(US$bn)
Austria: Top 10 Retailers 2006
Retailer
Total
Sales
(€m)
Grocery
Sales
(€m)
% Change
Grocery Sales
2006 v 2005
Grocery Retail
Market Share *(%)
No. of
Stores
Sales Area
(sqm)
Rewe
4,842
4,145
+2.4
22.33%
1,401
1,383,800
Spar International
4,500
4,500
+4.5
24.25%
1,417
972,502
Aldi
2,674
2,674
+4.1
14.40%
410
287,000
Metro
1,744
791
+2.9
-
12
95,604
Adeg
1,443
1,443
+2.7
6.23%
750
285,083
Zev Markant
1,281
765
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4.12%
1,246
288,427
Tengelmann
1,000
579
+4.0
3.12%
375
183,455
Lidl
510
510
+9.7
2.75%
170
110,500
M- Preis
440
440
+2.3
2.37%
140
210,200
Source: IGD Country Presentations Austria
*Grocery Retail Market Shares exclude cash and carry operations.
Retail Market Share 2006
Aldi
16%
ZEV Markant
3%
Lidl
4%
Tengelmann
5%
Metro
2%
Edeka
3%
Spar
28%
Other
3%
Rewe
36%
Source: IGD Country Presentations Austria
Retail Grocery Market
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Austrian grocery retail market is worth €19.1billion (2008 est.),
accounting for 40% of total retail market (IGD, 2008).
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The discount sector remains one of the fastest growing sectors in
Austria and Aldi is the clear leader. Others in the market include
Plus/Zielpunkt, Penny/Mondo and Lidl. The Austrian consumer now
looks for quality in their discounters while previously they simply looked
for price (Euromonitor, 2008).
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The market is dominated by German retailers with Tenglemann, Rewe,
Aldi, Lidl, Metro and Edeka all present in the market. This is due to the
linguistic, cultural and historical links between the two countries.
Key Consumer
Trends in the Market
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Growing concern over health and well being
– Retail market for health and wellness food in Austria grew by 5% in
value in 2006 and 18% of all revenues from food sales and 44% of
all money consumers spent on drink in Austrian shops was derived
from healthier varieties.
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Organic becoming increasingly important
– highest percentage of organic farmland in the EU, Italy in second
place (Eurostat, 2007).
– 13% of all farmland is organically cultivated (Bio Austria, 2007)
– 87% of Austrians regularly purchase organic food
(Lebensministerium Austria, 2008)
Foodservice in Austriafacts and figures
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Sales in consumer foodservice in 2006 amounted to €7.85bn,
which was a growth of 1.7% on the 2005 value (Euromonitor,
2008).
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The total number of foodservice outlets in Austria in 2006 was
49,231 and of these only 1,568 were part of a chain or 3.2%
(Euromonitor, 2008).
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The total average annual expenditure on café, restaurants, and
hotels per household makes up 5.5% of total expenditure or €1,676
per annum
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Consumer foodservice in Austria is forecast to grow at a rate of
8.5% in the period 2006-2011 or a CAGRate of 1.7% in the same
period.
Foodservice in Austria
Trends
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foodservice market. These are:
1. Ever-increasing pace of living - leading to demand for faster services and
the need for greater convenience. The number of hours spent working per
week has increased steadily since 2002 which is also fuelling this faster
lifestyle (Euromonitor, 2008).
2. Long term trends toward single person households who are unwilling to
cook for one person - driving the sales of 100% home delivery or
takeaways. Approximately 25% of all households in 2006 were single
person households. This leads to opportunities across all aspects of
foodservice from take-aways to full service restaurants (Euromonitor,
2008).
3. The Health and wellness trend is leading to healthier food, fresh
ingredients and smaller portions. Fish and seafood are becoming
increasingly more popular and poultry schnitzel’s have been successfully
launched. Low carbohydrate dishes are becoming sought after e.g. salad
(Euromonitor, 2008).
Foodservice in Austria
Trends
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Greater acceptance of foreign cuisine
– Consumers are becoming more exposed to international trends
and more experimental in terms of choice of cuisine. This has
led to an increase in sales for full service restaurants that serve
Japanese, Chinese and Oriental food in particular. This is
expected to continue (Euromonitor, 2008).
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Chains play a minimal role in the overall Austrian foodservice
industry. Independent outlets generate the majority of sales. Only
McDonald’s and Tchibo Holding play a significant role in terms of
presence and sales. Austrian’s are sceptical about new
international chains due to their conservative tastes. This has led to
fast food being underdeveloped with only McDonald’s having
significant market share (Euromonitor, 2008).
Foodservice
Establishments
Chained Consumer Foodservice Brand Shares by % Value.
Company
2005
2006
McDonald’s
39.1
38.4
Tchibo
15.5
15.4
Nordsee
4.5
4.6
Burger King
3.7
4.0
Pizza Mann
2.4
2.4
Petit Bistro
2.3
2.3
Aida
2.4
2.3
Schnitzel Haus
1.9
1.9
Testa Rossa Caffee
1.6
1.7
Coffeeshop Company
1.3
1.4
Source: Euromonitor. 2008 Consumer Food Service Austria.
Foodservice
Establishments
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McDonald’s
– In 2006 they had a 38.4% market share and were the only
international food service chain with a significant market share.
– In 2007 they had 163 outlets which generated a turnover of €365
million.
– There were 117 million visits to McDonald’s Austria in 2007 which
was up 10.4% on 2006 and they employ around 7,000 people.
Foodservice
Establishments
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Tchibo
– Operates under the fascia Eduscho in Austria
– This is a shop which specialises in coffee and bedding. They have
weekly special offers for coffee and other household items.
– This is a German brand and its brand awareness is extremely high
in Germany at 98% awareness (Tchibo website, 2008)
– Their food selection now also covers Tchibo branded chocolate.
– Now offers travel packages.
Foodservice
Establishments
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Nordsee
– Have benefited from the health trend in Austria and have furthered
this with their advertising of “Fisch verliebt” or “in love with fish” in
English.
– They operate 44 stores in Austria but turnover is not available
though they do make up 4.6% of the chained consumer foodservice
brand share by value.
Reasons for targeting Austria
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Part of German language speaking zone along with Germany and
Switzerland with similar consumer habits
Good opportunity for targeted premium/niche brands
Strong economy
Barriers/challenges in supplying
Austrian market
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Self sufficient in main agricultural product categories
Strong support for locally produced/sourced dairy and meat products
Bord Bia services 2009
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Bord Bia Austrian market visit June 2009
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Market queries handled by Bord Bia office in Frankfurt staffed by Liam
MacHale & Fiona O’Toole
Services include: Itinerary Development, Category Analysis, Media review and
translation services, Product Price auditing and tracking, Product retrieval,
Buyer networking, Distributor search
Bord Bia
Wöhler str. 3-5
60323 Frankfurt
Germany
Tel: +49 69 710 423 255
Fax: +49 69 710 423 200
Email: liam.machale@bordbia.ie