The value of the food market in Poland

The food industry is changing extremely rapidly and dramatically. Increasing market competition, growing consumer demands, and shifting trends place very high requirements on food manufacturers. The rapid development of the food and beverage sector is clearly visible both on our tables and on store shelves. Dozens of types of cold cuts, yogurts, chocolates, and new beer varieties introduced to the market every year illustrate the lightning-fast changes occurring in the FMCG market in Poland. They also illustrate how difficult and demanding this market is for producers, wholesalers, and retailers. Consumers, having a choice of dozens of products with similar properties and prices, are becoming picky; therefore, sensitivity to changing trends and introducing new items to company offerings are the main elements characterizing this dynamic market. Consumers like novelties and are eager to take advantage of promotions. In recent years, increasing emphasis has also been placed on product quality, and holding quality certificates such as ISO, HACCP, or GOST is becoming increasingly common among Polish food and beverage producers.

The food market in Poland is quite fragmented; after a slow start in the nineties and a period of stagnation, it has been developing very dynamically recently. Its value is estimated at 135 billion PLN, of which 2/3 is accounted for by food products: alcohol, dairy products, non-alcoholic beverages, sweets, and OTC drugs. Among the 20 largest food categories, alcohol—specifically beer and vodka—holds a dominant position in terms of sales value. Together, these two markets are worth nearly 15.5 billion PLN. There is, therefore, much to fight for, especially since analysts forecast that this year the value of the food retail market in Poland will grow by about 6%, to over 200 billion PLN, and will exceed 211 billion PLN the following year.

– Since Poland’s accession to the European Union, there were concerns that the Polish food market would be flooded with foreign products. However, as it turned out, Polish producers are doing very well not only in the competitive Polish market but also increasingly well in foreign markets. This high position of Polish products is visible both on the shelves of European stores and at trade fair meetings, where many foreign exhibitors draw on the experience of Polish producers – says David Ashdown, Managing Director of Expomedia Events Warsaw.

Therefore, it is so important for manufacturers to present new products where decisions are made about what will appear on our shelves in the coming season. Such a place is undoubtedly the International Food and Drink and Hotel and Catering Equipment Exhibition, IFE POLAND, organized annually in Warsaw. Last year alone, the fair was visited by nearly 6,000 people, and among the 372 exhibitors, there were representatives from 26 countries, including Spain, Germany, Greece, India, and North America. 40 new products were presented, and awards were given to the most valued Polish products. During the 2006 fair, the Minister of Agriculture and Rural Development Cup for the Best Product of the Fair was awarded to P.M.B. Białystok S.A., a producer of original Polish cold cuts, for a series of “military products” (ham, bacon, pork belly, and pork neck).