Poland
Market Overview
Bord Bia, Frankfurt
November 27th 2008
Polish Market Overview
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Population: 38.5 million.
The main cities are Warsaw (1.6m), Lodz
(783,700) and Krakow (734,400)
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Language: Polish (Official)
•
Currency: Polish Zloty
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Joined the EU in May 2004
•
One of the lead economies in Central
and Eastern Europe due to its high
population.
Market Overview
•
Great wealth gap between the country and the other Western Countries.
GDP per capita €7,774.08 (2007) v Germany €28,012 (2006)
•
GDP growth rate predicted to be 4.7% in 2008 (IGD, 2007)
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Inflation rate: 3.1% for 2008 (IGD, 2007)
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Unemployment one of the highest in Europe,12.1% but is falling (IGD,
2007)
•
Consumer spending increasing (+18.9% 2007 v 2006)
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VAT on goods and services: 7%
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VAT on Food: 3% for unprocessed, 7% for other foodstuffs
Irish Food Export Performance
Irish Food exports to Poland 2007
Beverages
10.9%
Live Animals
0.2%
Meat
25.2%
Miscellaneous Edible
41.4%
Total
Exports:
Dairy
1.2%
Fish
8.3%
€46.7mn
Vegetables and Fruit
1.5%
Sugars
3.5%
Animal feeds
5.9%
Source: CSO Food and Drink Statistics 2007
Coffee,tea, cocoa, spices
1.8%
Key Consumer Trends
in the Market
•
Solid growth in retail sector: 11.9% in 2006 (IGD, 2007).
•
Per capita spending high in large cities (60% higher than national
average), weak in poor rural areas.
•
Roughly half of retail sales in Poland are generated through the food
retail sector.
•
Polish consumers are known to be extremely savvy and price
conscious.
•
A recent law (2007) has come into force in Poland restricting the future
size of Hypermarkets, so compact hypermarkets are becoming popular
(IGD, 2007).
•
20% of Consumer expenditure is on food and non alcoholic beverages
(IFE, 2008).
Retail Grocery Market
•
•
•
•
•
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Grocery Retail Value: €38.9 billion (Agri Food, 2008)
Hypermarkets leading store format, 15% of national distribution. Tesco
is the leading player. Others include Metro Group (Real), Carrefour,
Auchan, Schwarz Group (Kaufland).
Metro experienced a 9.4% growth in sales in 2006 to reach €2.687
billion (IGD, 2007).
Supermarkets - Tesco, Carrefour, Intermarche, Polomarket, Rewe
Discounter: Dominated by Biedronka (Jeronimo Martins), Schwarz
Group (Lidl), Dansk Supermarked, Auchan’s Atak. Aldi Nord has
recently entered the market (2007).
Discounters have had heavy growth with Biedronka’s sales up 18.9% in
Q1 2007.
Retail Market by Type
Grocery Market by type
Discounter
32%
Hypermarket
36%
Source: IGD 2007
Cash and Carry
2%
Supermarket
30%
Retail Grocery Market
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•
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Independent neighbourhood stores play an important role in national
food supply especially in small towns and poor rural areas as well as
cities.
Kiosks - huge number spread across the country. State owned Ruch
chain leading player (10,000 throughout Poland).
Cash & Carry sector: Dominated by German Metro (Makro, Real),
Rewe’s Selgros, Emperia Holding, Eurocash.
Piotr i Pawel and Bomi are 2 premium supermarkets to have
experienced growth in recent years with Piotr's sales up 17% to 216
million in 2006.
Market Share of Top Ten Retailers
Eurocash
6%
Lewiatan
6%
Rewe
5%
Metro
19%
Carrefour
8%
Spolem
13%
Schwarz
Group
9%
Auchan
10%
Source: IGD, 2007
Tesco
12%
Biedronka
(JM)
12%
Retail Market Structure
Top 10
Retailer
Total
Sales
(€m)
Grocery
Sales
(€m)
% Change
Grocery
Sales (06 vs
05)
Grocery
Retail
Market
Share* (%)
No. of
Grocery
Stores
Sales
Area
(sqm)
Metro
3,447
2,687
+9.4%
2.67%
74
416,751
Spolem
1,807
1,807
+2.2%
5.27%
>4,000
800,000
Jerónimo
Martins
1,715
1,715
+27.2%
5.00%
905
452,952
Tesco
1,583
1,583
+18.4%
4.62%
144
435,251
Auchan
1,475
1,438
+3.5%
4.20%
34
194,000
Carrefour
1,189
1,189
+15.77%
3.47%
125
418,000
Lidl &
Schwarz
1,250
1,250
+54.3%
3.65%
220
356,000
Rewe
661
661
+17.0%
0.24%
35
70,000
Leclerc
525
520
+12.2%
1.52%
19
83,900
Eurocash
507
507
+15.5%
0.74%
>2,600
644,000
Lewiatan
500
500
+4.2%
1.46%
>1,300
260,000
Source: IGD Analysis, Country Presentation, Poland
Private Label
First appeared in 1998
Accounted for 16% of sales in 2006
Number of SKU’s increased 80% since 2004
Considered as a product with very low quality or for ‘poor people’
Private Label Share % (2006)
80
70
74.4
(72.7)
60
% Private Label
•
•
•
•
50
49.7
(50.8)
40
44.4
(47.7)
30
20
17.7
(18.1)
10
13.4
(15.6)
10.5
(9.8)
10.3
(12.0)
Tesco
Ahold
0
Jeronimo
Martins
Casino
Tengelmann
Carrefour
Metro
Source: IGD Analysis Country Presentation Poland 2007
7.2
(8.6)
Auchan
1.7
(3.0)
Rewe
Foodservice Trends
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Increasing disposable income and changing consumer habits drove
growth in consumer foodservice in 2006.
Consumer foodservice is highly fragmented but domestic companies
dominate the market and this is through lower prices and tailored
offerings. Outlets such as Da Grasso, Sfinka Polska and Pizza
Dominium were the most successful in 2006.
Independent outlets are the most dominant in terms of numbers and
they cover the entire range from economy to premium. Despite not
having the economies of scale of large chains they often offer lower
prices.
There is low urbanisation in Poland and the numbers living in urban
areas is almost unchanged since the early 1990’s (62%); reasons for
this relate to an ageing population and high unemployment - cost of
living is lower in rural areas. This could be a limiting factor in consumer
foodservice.
Adopted from Euromonitor Data 2007
Foodservice Trends
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There is expected to be expansion into the smaller cities in Poland for
specialist coffee shops and casual dining full service restaurants, but
they should bear in mind the lower purchasing power in smaller cities.
Eating out is not part of Poland’s traditional lifestyle and there is a belief
that home cooking is better quality than food in restaurants.
There has been a number of failures on the Polish market for
international chains eg Burger King withdrew after losing the price war
with McDonald’s in 2001. However in 2007 they re-entered the market
with AmRest running the outlets. There are currently 7 outlets.
Dunkin Donuts also withdrew due to their prices being too high.
Subway blame disappointing performance on their high costs.
The Euro 2012 soccer championship to be held in Poland and Ukraine
is expected to benefit foodservice with a higher disposable income
resulting from investment and will also benefit the economy overall.
Adopted from Euromonitor Data 2007
cD
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on
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M eH a
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M
Chained Consumer
Foodservice Brands
by market share and number of outlets
350
40
300
35
250
30
200
25
20
150
15
100
10
50
5
0
0
Adapted from Euromonitor Data 2007
No of Outlets
Share
Foodservice
Establishments
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Sfinks Polska SA
– The largest restaurant network in Poland operating three brands:
Sphinx, Chlopskie Jadio and WOOK Restaurant. It is the third
largest foodservice company in Poland in terms of turnover.
– Sphinx offers meat, salads, pasta, pizza, and desserts.
– 108 establishments in Poland, Hungary, Czech Republic, Romania
102 of which are in Poland.
– Took over premium restaurant chain Chlopskie Jadlo in 2006
– Chlopskie Jadlo offers traditional Polish cuisine in peasant
surroundings
– Currently 12 restaurants in operation
– WOOK offers authentic Chinese food in
3 restaurants in Poland.
Chlopskie Jadlo Peasant Style Restaurant
Foodservice
Establishments
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Green Way
– Polish vegetarian restaurant and bar chain
– founded in 1997 as a healthy eating restaurant
– 31 Greenway restaurants throughout Poland
– 1 in Austria, 1 in Norway
– Menu includes lentil soup, spinach dumplings, vegetarian
enchiladas, fruit filled pancakes, vegetable juices and smoothies.
– Greenway markets also sell products free from meat and animal
derivatives
– www.green-way.pl
Foodservice
Establishments
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Pizza Dominium
– started in Warsaw 1993
– offer handmade, original Italian pizzas,
soups, snacks, salads, pasta and
sandwiches
– over 50 restaurants in cities throughout
Poland
– planning to expand into Romania with
their restaurant chain.
Other Foodservice
Establishments
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Coffee Heaven
- Leading Eastern European Coffee Chain found in Poland, Czech
Republic, Latvia, Bulgaria, Slovakia
- Sells sandwiches and snacks as well as coffee
- First opened in Poland in August 2000
- Currently has 48 coffee houses in Poland
www.coffeeheaven.eu.com
Reasons for targeting Poland
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Largest Eastern European market currently for Irish food exports
Total retail market +45% for 2005-2015 (€41.1bn)
Solid growth market >10% per annum
High penetration of premium segment for alcoholic beverages (32%)
Significant immigrant population returning from Ireland with knowledge of
Irish brands
Barriers/challenges in supplying
Polish market
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Market for high end premium products is small
Foodservice market fragmented
Very low per capita consumption of beef (5.2kg per annum)
Price conscious consumers
Bord Bia services 2009
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Beverage category report including market visit and buyer meetings (May
2009)
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Bord Bia market mentor available for Eastern Europe market and trade
related queries:
Kieran Fahy
Sarospatak ut 32
1125 Budapest
Hungary
Tel: +36 706 144871
Email: Kieran.fahy@freemail.hu