Romanians spent €2.4 billion on FMCG in H1

The total value of fast moving consumer goods (FMCG) could even be higher by €1 billion, according to officials of food industry employers associations, considering that an ACNielsen list includes only official data, “only the white market”, said Sorin Minea, President of the Romanian Employers Association for the Meat Industry. ACNielsen does not include bread among best-sold products in Romania, since about 75 percent of bread us produced on the black market.

Bread, meat and meat products make up for almost half of total goods consumed by Romanians in H1 2007. Business Standard estimates bread sales increased to €400 million.
Players on the baked goods market forecast bread consumption will drop in the coming 3-4 years. Instead, Romanians will consume more and more high-quality expensive products, which will also impact on the dairy market.

Beer consumption will rise by up to 50 percent in the coming five years, according to Mihai Ghyka, General Manager of Inbev Romania, subsidiary of the world’s leading brewer. Romanians spent RON 592.3 million (€181.9 million) on beer and RON 553.8 million (€170 million) on carbonated soft drinks in H1 due to high temperatures, a 34.6 percent increase year-on-year. “Timisoreana is top among preferred Romanian beers in the first half of 2007, with a 11.3 percent market share,” Dieter Schulze, President of Ursus Breweries, told Business Standard.

Ursus Breweries, Heineken, European Drinks, and Tuborg dominate the Romanian beer market, according to ACNielsen.

Coca-Cola continues to dominate the carbonated soft drinks market, followed by European Drinks, Pepsi Co, Private Label, and Romaqua, which together have a 92 percent market share. Romanians prefer chicken and eggs. The poultry and egg market was estimated at €450 million in H1 2007 by Ilie Van, President of the National Association of Poultry Breeders in Romania (UNCPR). Minea valuates the pork, beef, and lamb or mutton markets, including salamis and sausages, to be worth €400 million. Main players on this market are CrisTim (market leader), Caroli, Campofrio, Aldis Calarasi, and Agricola International Bacau, which cover 54 percent of the market.

Romanian smokers spent RON 797.4 million (€225 million) in H1, 28.1 percent less than in the first six months of 2006, due to higher prices due to the sin tax. Kent is by far the best-sold brand on the market, with a 19.8 percent market share, despite continuous price rises brought about by the sin tax.

The four top players on the cigarette market are: British American Tobacco, Philip Morris, JTI, and Galaxy Tobacco, who together control about 97 percent of this market.

Popular foods
The poultry and egg market was estimated at €450 million in H1 2007 Ilie Van, President of the National Association of Poultry Breeders in Romania (UNCPR).