Flavoured Milk Demand to Boost Beverages Market in East Europe: Ken Research


Key Topics Covered in the Report

• Detailed profile of East Europe Flavored Milk Market
• Value and volume analysis of East Europe’s Flavored Milk Market
• Consumer demographics, trends and behaviours
• Historic and forecast consumption in the East Europe’s Flavored Milk market
• Major players in the East Europe’s Flavored Milk market
• Future Prospects of the Flavored Milk Market in East Europe.

Ken Research announced its latest publication on, “Flavored Milk Consumption Volume and Growth Forecast to 2021-East Europe”, offering insights on Flavored Milk consumption in the East Europe Market. The publication includes an insightful analysis into the operating environment for the Flavored Milkmarket in East Europe. The countries covered in this report includes Belarus, Bosnia, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Poland, Romania, Russia, Serbia, Slovak Republic, Slovenia, Turkey, and Ukraine.
Economic Environment of East Europe

The economies of Eastern Europe (CEE) had a soft start to the year. In Q1, regional GDP growth fell from Q4’s 3.7% to 2.9% over the same quarter of last year. The result marked the weakest growth since Q4 2014 amid a sharp slowdown in EU development funds along with unfavorable external conditions.

Looking at the individual countries in the region, growth fell to a two-year low in Poland, the region’s largest economy. Improved labor market condition which has led to a pick-up in private consumption, did not fully compensate for contracting investment and surging imports, which drove the slowdown. The Czech Republic and Hungary also lost steam, with the latter expanding at the slowest pace since Q1 2013. In contrast, Romania was a bright spot in the region and grew at the fastest pace in over one year.

Despite the soft start to the year, buoyant private consumption and improving exports should support a pick-up in growth going forward and an expansion of 3.0% in Q2 and 3.2% in Q3 is predicted. However, lower EU developmental funds will likely continue to weigh on the region’s performance and a number of risks are casting a shadow on the outlook. There are unknown impacts of Britain leaving the EU and is likely to disturb the financial markets, putting the region’s bonds and currencies under pressure. Meanwhile, in Poland, controversial political policies continue to cast a shadow on the country’s prospects and a number of uncertainties remain regarding the government’s plan to solve a burden of USD 35 billion in Swiss franc-mortgages. A proposal is expected to be presented to the Parliament by the end of June and at this time, the consequences for the country’s banking sector are unknown.

Brief Overview of the Flavored Milk Market in East Europe

Flavored milk is a dairy drink produced with milk, sugar, colorings, and additional flavor and sweetener. It offers some vital nutrients such as calcium, potassium, protein, phosphorus, vitamins A, D and B12, niacin and riboflavin. The flavored milk is generally available in different flavors such as strawberry, chocolate and vanilla flavors in fat free and low fat ranges.

The East Europe Flavored Milk industry is at a promising stage as the consumption is still low as compared to other drinks such as carbonated soft drinks. Upbeat consumer perceptions about the various health benefits of milk are creating prospects for flavored drinks consumption across the World. This will escalate the overall flavored milk market in Eastern Europe as well as globally.

Major Players Flavored Milk Market in East Europe

The major players of Flavored Milk Market in East Europe are Danone Russia Group of Cos, Wimm-Bill-DannProduktyPitania, Madeta, Dukat, Vindija, MeggleHrvatska doo, Albalact, Royal FrieslanCampina and many more.
Russia Danone Russia is the leading group of flavoured milk in Russia with a value share of 24% in 2015. Danone is a company which constantly works on innovation to present the consumers with new range of products. Danone was followed by Wimm-Bill-DannProduktyPitania, accounting for 22% of value share.

In Croatia, Dukat remained the clear leader in drinking milk products in 2015 with an overall value share of 31%. The company, which is part of GroupeLactalis, enjoys a strong early mover advantage in this category, having been the first dairy producer to achieve nationwide distribution in Croatia. Vindija was the second leading player, followed by MeggleHrvatska. Other prominent competitors included Agrokor, Kauflandkd and Billa doo.

Albalact and Royal FrieslandCampina are the main companies in drinking milk products in Romania. The two players have consolidated their strong competitive positions, having wide portfolios across all the categories and a relevant presence in dairy overall.

Flavored Milk Market in East Europe Prospects

• The consumption of drinking milk products is expected to increase in Russia in the forecast period. In value terms, drinking milk products is set to see a CAGR of 2% at constant 2015 prices. Drinking milk products will remain highly popular amongst Russians. Such products are perceived as essential, whilst milk is truly essential and traditional for Russian consumers. In 2020, drinking milk products is expected to reach sales of RUB261.4 billion.
• Czech consumers are considered to be price-sensitive. Therefore, price will remain a decisive factor in the consumer purchasing decision over the forecast period. Nevertheless, it is projected that increasing awareness of the health benefits of drinking milk products, resulting from the extensive promotional efforts of companies, associations and public institutions, will positively influence consumption between 2016 and 2020.
• A decreased VAT rate to 9% for food products in Romania is expected to lead toa positive development for drinking milk products, and overall because of the improving standards of living in a stable economic development. Even so, the category will remain under the influence of the domestic habits of purchasing and consumption, where the own consumption in rural areas and the supply of local farmers which in most cases is not reported will continue to account for an important consumption share.

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Ken Research
Ankur Gupta, Head Marketing & Communications


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