Croatia Market Overview. Bord Bia, Frankfurt November 27 th 2008

Transcription

1 Croatia Market Overview Bord Bia, Frankfurt November 27 th 2008

2 Market Overview Population: 4.46 million (IGD, 2007) Main cities are Zagreb, capital (779,200), Split (463,700), Osijek (330,500) and Rijeka (305,500) Languages: Croatian (Official) Expected to join the EU in Currency: Croatian Kuna 1 = 7.14 HRK (ECB, October 2008) Source: IGD, 2007

3 Market Overview Real GDP Growth rate: 4.5% 2008(e) Stable growth rate in recent years (IGD, 2007) Inflation rate: 2.6% (2007) (IGD, 2007) Unemployment: 11.2% (2008 (e)) but falling (IGD, 2007) Consumer Spend per capita has been increasing in recent years. 4,013 (2005) to 4,568 (2007), (IGD, 2007). Population:» 16.2% 0-14 years» 67% years» 16.8% 65+ years (IGD, 2007)

4 Economy VAT: 22% Global Exports: $ billion (2006) (WTO, 2008) Imports: 21.5 billion (2006) (WTO, 2008) Import breakdown: Manufactures 72% Fuels and mining products 18.5% Agricultural products 9.4% (WTO, 2008) Main export partners: EU %, Bosnia and Herzegovina 12.6% and Serbia 5.2% (WTO, 2008) Main Import Markets: EU %, Russia 10.1% and China 5.3%. (WTO, 2008)

5 Irish Food Export Performance Total Value of Exports 2 million Irish Food Exports Miscellaneous edible 49.4% to Croatia 2007 Sugars 2.8% Vegetables and Fruit 14.7% Fish 10.4% Dairy 0.7% Beverages 22.0% Source: CSO Food and Drink Statistics 2007

6 Key Consumer Trends in the Market Retail Sector is showing solid growth. Consumer behaviour in Croatia is similar to Western Europe, but purchasing power is low. Grocery sales account for approximately 51% of the Total Retail Market (IGD, 2007) (e) ( ) ( ) ( ) Total Retail Market (billions) Grocery Retail Market (billions) Grocery Retail Spend/Capita 1,018 1,086 1,146 Source: IGD, Retail Analysis, Country Profile Croatia, 2007

7 Retail Grocery Market Market value: 5.18 billion (2008 (e)) No.11 in the Top 10 Eastern European Markets in terms of turnover. No. 72 in the Top Global Markets (IGD,2007) Increasing per capita spend 1,086 (2007): 1,146 (2008(e)) (IGD, 2007) Supermarkets are leading format - accounts for 43% of value of grocery retail, closely followed by small grocery stores at 37%. Discount Retailing is growing: 2% in 2002 v 6% in 2007 (IGD, 2007) Lidl (Lidl & Schwarz Group) 5 million sales (2006) (IGD, 2007) Konzum is Croatia's top retailer operating convenience stores, cash and carry s as well as supermarkets. They account for a 37.3% market share, excluding their cash and carry sales under the name Velpro (IGD, 2007).

8 Retail Grocery Market Cash & Carry: Market is stagnant after a period of growth. Getro accounts for sales of 355 million in 2006 and is Croatia s largest cash and carry chain. Velpro (part of Konzum) had sales in the region of 221 million in German Metro Group had sales of 270 million (IGD, 2007) Konzum was renamed from Unikonzum after the fall of communism. It is a major player in the Croatian market accounting for over a third of sales. They aim to consolidate their position through a strong store opening programme and selective acquisitions (IGD, 2007) Source: IGD, Retail Analysis, Country Profile Croatia, 2007

9 Retail Grocery Market The Croatian retail market is very fragmented and is dominated by local players. The strict trading laws discouraged foreign retailers from entering but this is changing. Croatia has a number of smaller retailers joining together to form buying groups. Eg Ultra Gros: made up of 20 small Croatian retailers and operates over 450 stores. Eg CBA: made up of 8 trading companies operating some 540 supermarkets. Consumers are becoming more sophisticated which places more pressure on local retailers, but allows for opportunity for margin improvements. Source: IGD 2007 Country Presentation on Croatia

10 Retail Market Share 2006 Konzum 38% Other 20% Ultra Gros 8% Getro 6% Metro 6% Lidl & Schwarz 4% CBA Kerum 3% 3% KTC 4% Mercator 4% Rewe 4% Source: IGD Country Presentations Croatia 2007

11 Retail Market Structure Top 10 (2006) Retailer Total Sales ( m) Grocery Sales ( m) % Change Grocery Sales 2006 v 2005 Grocery Retail Market Share (%) No. of Stores Sales Area (sqm) Konzum 1,935 1, % 37.3% ,000 Ultra Gros % 8.12% ,000 Getro % 6.3% 19 93,800 Metro % 5.9% 6 47,000 Rewe % 3.93% ,000 Lidl & Schwarz % 4.48% 30 87,500 Mercator % 3.62% 69 69,188 CBA % 3.29% ,000 KTC % 3.55% 16 48,000 Kerum % 3.47% 55 16,500 Source: IGD Analysis, Country Presentation, Croatia 2007

12 Private Label (14.4) Private Label Share 2006 % % Private Label (8.0) 9.6 (9.6) 7.0 (2.4) 6.6 (5.5) 6.4 (-) 4.0 (2.7) 0.2 (0.2) 0 Getro Konzum Rewe Lidl Metro Plodine Presoflex KTC Source: IGD Analysis Country Presentation, Croatia 2007

13 Foodservice Trends Chain restaurants with the exception of fast food chains are not really present in the Croatian market. Most predominately found are small traditional restaurants that have increased the quality of their food and service. Ethnic restaurants have expanded considerably in recent years especially Italian, Chinese and Mexican restaurants. The foodservice market is extremely fragmented with mainly independents operating in the market and certainly making up the bulk of the foodservice market. Growing foreign tourism and a growing economy is likely to affect the foodservice market in the coming years.

14 Foodservice Establishments McDonald s Entered the market in 1996 and currently operate 16 outlets Approximately 20,000 patrons visit their outlets daily and in 2002 the turnover was $15.4million. Subway Operates 4 outlets in Croatia. Turnover is not released Pizzeria s There is no shortage of pizzeria s in Croatia, although there seems to be very few chains. Source: McDonalds Subway and the USDA

15 Reasons for targeting Croatia Retail market is forecast to grow by 63% from (+ 6.7bn) according to IGD Consumer Spend per capita has been increasing in recent years. 4,013 (2005) to 4,568 (2007) (IGD, 2007). Well developed and modern infrastructure

16 Barriers/challenges in supplying Croatian market Small population (4m) Not in the EU Local Language barrier Distance to market adds to logistical challenge

17 Bord Bia services 2009 Bord Bia market mentor (Mr. Kieran Fahy) available for Eastern Europe market and trade related queries: Services include: Itinerary Development, Category Analysis, Media review and translation services, Product Price auditing and tracking, Product retrieval, Buyer networking, Distributor searches Kieran Fahy Also: Liam MacHale Sarospatak ut 32 Bord Bia 1125 Budapest Wöhler Str. 3-5 Hungary Frankfurt, Germany Tel: Tel