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Health and Wellness in the Czech Republic

Czech Republic health and wellness market remains price sensitive as a result of unstable economic conditions

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2014-01-31 02:28:02 - Health and Wellness in the Czech Republic - a new market research report on

Health and wellness products continue their development. The health and wellness trend continues to develop in the Czech Republic. Czech consumers have shown more interest in wellness variants of packaged food and beverages in recent years and are taking better care of their health, in tandem with clever marketing of leading producers. Amongst the groups attracting the most vivid interest are better for you packaged food, fortified packaged food, energy drinks, fortified concentrates, fortified tea and naturally healthy (NH) tea. Sales of organic beverages declined as their higher price prevented them from seeing wider consumption.

Private label strengthens and stevia (natural sweetener) appears in soft drinks. Czech consumers remained price sensitive under unstable economic conditions in the country in 2012 and



they generally purchased items offered at promotional prices introduced frequently by both producers and retailers. Private label products penetrated health and wellness (especially organic beverages and packaged food) more deeply in 2011 and 2012 reflecting the trend that Czech consumers saved on packaged food and beverages in 2012 and their being offered at good prices was an important decisive factor. In 2012, natural sweetener stevia was introduced to soft drinks – Kofola launched improved reduced-sugar cola carbonates Kofola Bez Cukru, Coca Cola HBC Czech Republic introduced Nestea Green Tea Peach and Rauch Praha launched Rauch Nativa Ice Tea and all of them included stevia.

Domestic and international companies both active in developing health- beneficial ingredients. Both domestic and international companies operated well within the health and wellness field, which was fairly fragmented in 2012. HW beverages remained under control of Karlovarske Mineralni Vody and Kofola. Local producers of tea (Mediate, Leros and Oxalis) kept solid positions within functional tea and organic tea. Danone (dairy), Madeta (dairy), Olma (dairy), Wrigley (confectionery), United Bakeries (baked goods) and Opavia-Lu (biscuits) led sales of HW packaged food. Private label strongly improved its position within organic beverages and organic packaged food.

Hypermarkets leads sales of HW products. Hypermarkets led distribution of health and wellness packaged food and beverages in the Czech Republic in 2012 because the channel offers competitive prices and these retailers enlarged their offer of premium private label products at the end of the review period. Importance of supermarkets and discounters continued to grow in 2012 in line with wider offers of health and wellness products, both private label and branded, there. Convenience stores gained value share again in 2012 as Czech consumers increasingly appreciated the outlets´ convenient locations near their homes and because convenience stores introduced more price-advantageous options to lure a wider consumer base.

Prospects good for health and wellness with partial revival of Czech purchasing power. Consumption of health and wellness packaged food and beverages is expected to see positive development in the country. Sales are set to grow at a quicker pace during the final part of the forecast period with predicted improving purchasing power of Czech households. During the initial part of the forecast period, Czech consumers will remain cautious about spending and will choose beverages and packaged food carefully. A bulk of HW beverages and HW packaged food will be purchased when there are special price offers. Permanent relaunches and innovations in terms of new functional ingredients (superfruit), natural ingredients and sweeteners (stevia) and packaging will support sales.

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