Dairy products witnessed the strongest dynamics in overall retail sales of consumer goods last year, registering growth of over 60% for the categories of milk and milk-based deserts, shows a survey conducted by MEMRB Retail Tracking Services market research firm.
Sales of sana and kefir also posted a growth against 2005, of 53%, with a similar development being registered for the category of milk-based snacks products.
Dairy products last year accounted for 16% of the value of food retail sales, from 14.4% in 2005, being the only category to boast increased importance in this sector, according to the MEMRB survey. Food products currently account for 39.5% on the FMCG market.
Data made available by MEMRB, as well as international reports, prove that the market for dairy products, put at 800 million euros, is one of the most dynamic in Romania. In terms of the average consumption per capita of the more developed markets in Western Europe, last year's increases point to the fact that these gaps are now narrowing.
"The emergence of more outlets and retail growth led to a broader supply of dairy products, which is one of the major factors behind the advances made last year," comments Valeriu Steriu, chairman of the Milk Industry Employers' Association (APRIL). The development of modern outlet networks led to lower sales of dairy products coming from the more traditional markets, which also "cleaned up" the black market and drove up sales last year, according to Steriu.
"On the other hand, there are several drawbacks for producers in this industry, including the entry of European retailers on the market in full gear, which can dictate prices (...)," says Steriu.
Last year, domestic producers expected imports of dairy products to double this year, in the wake of Romania's EU integration. However, according to Steriu, the first few months of the year did not see a dramatic growth in sales of imported dairy products.
Exports of dairy products last year outran those of imports.
Overall, retail sales of consumer goods increased in terms of value, by 17.4% last year against 2005, but the pace was much slower compared with the previous period (29.4%). In terms of volume, the FMCG market advanced by some 6% in 2006, half of the rate posted in 2005 against figures for 2004.
According to the MEMRB survey, the beverages market continued to dominate sales of consumer goods, being the most developed segment. Still, its importance in the overall FMCG market (in terms of value) has decreased in the past two years from almost 51% in 2004 to 44.3% last year.
Retail companies generated a cumulated turnover worth almost 9.5 billion euros in 2005 from sales of food products, according to the data provided by the National Statistics Office (INS).
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