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The Packaged Food in Bosnia-Herzegovina Report Offers a Comprehensive Guide to the Size and Shape of the Market at a National Level

Posted on: Friday, 30 May 2008, 06:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c93344) has announced the addition of Packaged Food in Bosnia-Herzegovina to their offering.

The Packaged Food in Bosnia-Herzegovina report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data (2002-2007), allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, distribution or pricing issues. Forecasts to 2012 illustrate how the market is set to change.

Product coverage: Baby food; Bakery products; Canned/preserved food; Chilled processed food; Confectionery; Dairy products; Dried processed food; Frozen processed food; Ice cream; Meal replacement products; Noodles; Oils and fats; Pasta; Ready meals; Sauces; dressings and condiments; Snack bars; Soup; Spreads; Sweet and Savoury snacks.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?

-- Get a detailed picture of the packaged food industry;

-- Pinpoint growth sectors and identify factors driving change;

-- Understand the competitive environment, the market's major players and leading brands;

-- Use five-year forecasts to assess how the market is predicted to develop.

Executive summary

Bosnian packaged food shows first signs of maturity

Over the review period, Bosnian packaged food experienced strong, relatively constant growth in all analysed categories. This was typical of all regional economies recovering from the Balkans crisis of the 1990s. By the end of the review period, Bosnian packaged food started to show the first signs of maturity, as growth of basic categories began to slow down. Bread, milk, oils and fats were first to start approaching saturation as the social scene in Bosnia recovered. Added value categories continued to show signs of strong growth. This is expected to continue over the forecast period as the quality of living in Bosnia improves.

First VAT rebates stabilise prices in Bosnia

VAT was introduced to the Bosnian economy at the beginning of 2006. Prices inflated as expectations of a tougher tax environment spread across the economy. By the end of 2006, significantly increased tax revenues began to flow back into the economy. Along with the beginning of tax rebates, this set the economy back in track. Almost all prices dropped back to previous levels by the end of 2006. This presented a strong positive impulse for increased consumption in 2007. After the 2006 VAT shock, in 2007 prices continued to perform in accordance with previously established trends. One reason for price stabilisation was the increased competition. Many companies decided to retain price levels in order to retain and strengthen corporate retail value shares.

Domestic regional and multinational manufacturers compete for shares

Well-known and well-positioned regional companies held leading positions. These companies have long presence in the country. They also have local knowledge and experience as well as strong product image. This makes it difficult for multinational companies to take leading positions. Primarily, Bosnian consumer loyalty is to regional companies and the lower price levels of regional products. Nonetheless, regional companies that were state owned and once had 100% of packaged food currently face fierce competition from financially strong international corporations. Consequently, they are forced into organisational restructuring and product modification and innovation in order to adapt to demanding and changing conditions. Domestic Bosnian companies were strong in traditional categories, such as bakery and dairy. However, they could not efficiently compete with regional and multinational giants in added value categories.

Greater confidence of suppliers in large retail chains than in other distribution channels

There was strong distribution growth via supermarkets/hypermarkets in 2007. Once centralised in major cities, this large retail network spread across each part of Bosnia-Herzegovina. Local players, such as Tropic, Fis and VF Komerc, recently acquired by Croatian retailer Konzum, and regional players like Merkator and Interex continued to expand their networks. Regionally strong retailers, such as Delta and Rodic, meanwhile looked for an opportunity to enter. Interviewed suppliers stated that they preferred to cooperate with large retail chains rather than with independent food stores: large retailers could guarantee greater security in honouring payment agreements.

Forecast growth to be supported by added value categories

Strong growth of added value packaged food is expected over the forecast period. This will be due to the increased purchasing power of Bosnian consumers eager to improve the quality of their lives. As added value packaged food becomes more abundant, price based competition is expected to decline. Emphasis will be on quality and product diversification, and advertising will be active. As particular categories approach saturation, niche categories will become increasingly exploited as a tool for retaining and increasing share.

Source: Euromonitor

For more information visit http://www.researchandmarkets.com/reports/c93344

Source: Business Wire

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