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Bosnia-Herzegovina packaged food market: Value sales grow 4% in 2012
Packaged Food in Bosnia-Herzegovina - a new market research report on 2014-03-10 08:35:02
At the beginning of the review period the Bosnia-Herzegovina packaged food market grew strongly. The main drivers of sales until 2008 were consumers´ rising disposable incomes and the consolidation of grocery retailing, which helped to significantly improve the range of products on offer in the country. 2008 was the year remembered for the volatility of food prices across the world. This was the first in a series of shocks which still affected the performance of the market in 2012. During 2009 the global financial crisis spread to Bosnia-Herzegovina, and the domestic economy ground to a halt and began to decline. Consumers´ demand contracted as their incomes shrank in 2010 and 2011, although the economy recorded minimal growth. The performance of packaged food was not helped by continued commodity price volatility during the review period.Price Drives Value GrowthPackaged food prices continued to increase in most categories during 2012, due to rising commodity (raw materials) and energy prices. Widespread price growth helped boost value sales by 4%, whilst growth in volume terms remained weak. The recession was still felt in Bosnia-Herzegovina during 2012, and there were widespread concerns about the state of the government´s finances. The country´s credit rating was downgraded during the spring of 2012; the reason being the lack of political agreement on budget issues. Growth prospects for the country remained weak in 2012, with GDP growth forecast at below 1%. In such an unsupportive environment packaged food is not expected to produce spectacular results.Regional Manufacturers Are DominantRegional packaged food manufacturers remain dominant in Bosnia-Herzegovina. The largest players in packaged food are Danube Foods, Agrokor, Podravka and Atlantic Grupa, since its acquisition of Droga Kolinska. These companies have different strategies, with some focusing on particular categories (such as Danube Foods), whilst others opt for a widespread presence (such as Podravka). What they all have in common is a focus on developing strong brand names in support of the development of customer loyalty. They are also able to leverage their size to work out the best deals with key retailers in Bosnia-Herzegovina; some even operate their own retail chains, for instance Agrokor´s Konzum.Market Consolidation ContinuesPackaged food retailing in Bosnia-Herzegovina continues to be dominated by small grocery retailers, but these outlets are losing ground to large retailers, as chained operators of supermarkets, hypermarkets and convenience stores continue to gain share. Large chained players are able to offer the best deals to consumers, who are increasingly interested in price. They are also able to offer consumers the widest range of brands and products from which to choose. Independent small retailers are being forced to specialise, increasingly serving as convenience specialists, price specialists or food specialists. Since the leading manufacturers shifted their focus towards key accounts (large chained retailers), smaller manufacturers with limited advertising resources began to focus on smaller independents, in which they can achieve better visibility and better sales.Product Differentiation StrategyGiven the current economic and political climate in Bosnia-Herzegovina, most experts are not predicting significant market recovery before 2014. Still, in 2012 there were signs that consumers had adjusted well to the recession, and were starting to exit the economy mode that was forced upon them during the review period. Quality of products and brand image are growing in importance relative to price in terms of factors influencing purchasing decisions. Over the forecast period this trend is expected to gain importance, as companies deploying product differentiation strategies record better results relative to those focusing on cost and price leadership.Report ScopeThis 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 2008-2012, 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 2017 illustrate how the market is set to change.Product coverage: Baby Food, Bakery, Canned/Preserved Food, Chilled Processed Food, Confectionery, Dairy, Dried Processed Food, Frozen Processed Food, Ice Cream, Impulse and Indulgence Products, Meal Replacement, Meal Solutions, Noodles, Nutrition/Staples, 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 market;
* 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.

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