Brands in Central and Eastern Europe
Brands are definitely better off in Central and Eastern Europe (CEE) than in the countries of Western and Southern Europe (WSE). While only 39% of brands in Western Europe are able to grow, half of all brands in Eastern Europe are prospering – on par with global performance.
In Eastern Europe, a small majority (52%) of shoppers indicate that they prefer brands over PL. By contrast, in WSE, a majority of shoppers (55%) states to actually prefer private labels over brands, in Austria even up to 64%. Brands have proven to be more resilient in the CEE region, but the cost-of-living conditions have pushed PL to double digit growth: +19% in 2022, followed by slight ‘slowdown’ with +16% in 2023.
While budget concerns are still very much top of mind in CEE, the region does not provide a uniform picture: More than half of the countries are showing some signs of relaxation, whereas more shoppers in the Czech
Republic and especially Ukraine are struggling financially. We also see a minor increase of budget concerns in Poland and Hungary with job fears persisting especially in Bulgaria and Romania.
Nonetheless, the peak of financial concerns has been overcome and – similar to the rest of Europe – attention in CEE countries is again turning to other issues: first and foremost, physical and to a lesser extent mental health, while safety concerns continue to be very strong.
The decrease in financial concerns is also having an impact on CEE shoppers adaptive purchase behavior. When it comes to daily necessities, only 37% of respondents still expect rising prices to have an impact on their purchasing behavior. In spring 2022, this figure was at 55%. Recent results show that they now tend to spend a bit more (37% vs. 32% in Spring 2023), more often buying what they like, but rather with a focus on daily necessities.
Looking at the ten most chosen brands in CEE, we do not see any changes, with Coca-Cola still in the lead. The only Top 10 brands growing in CRP are Mlekovita (rank 2) with a plus in penetration (+2.4%), and Kinder (rank 3), increasing both in consumer choice (+3.1%) and penetration (+2.2%). Looking at the following ten ranks, Colgate climbs to rank 20, whereas Orbit (rank 16) achieves the highest CRP growth with an increase of 6.5%.
Further hightlights: Another successful dairy – Polish Polmlek Group – leapfrogs 44 ranks to No. 37 – increasing its CRP by 57.2% with a penetration growth of 44.6%, and – as already mentioned – confectionary brand Roshen with a plus of 30.5% in CRP. The success of Haribo is, to a large extent, driven by CRP growth in Eastern Europe. Despite some channel conflicts, the brand is able to generate CRP growth in 15 out of 19 European countries.
And out of Hungary, the energy drink brand HELL not only conquers the Eastern European market, climbing 10 ranks up into the Top 50 (rank 49, CRP growth of 8.7%).
Established in 1996, Ukrainian brand Roshen has transitioned from a local favorite to a global presence, captivating consumers in 70 countries. Offering a range of products including chocolates, creamy desserts, and candies, Roshen positions itself as a purveyor of Ukrainian sweetness, inviting sweet enthusiasts to indulge in its diverse portfolio. Despite market obstacles, the company remains dedicated to principles of quality, innovation, and sustainability, driving its expansion efforts.
Source: CPS GfK | Brand Footprint 2024; https://roshen.com/en/en/about-roshen
HELL ENERGY, a Hungarian-born powerhouse, has swiftly emerged as a global FMCG sensation. Founded in 2006, it seized market leadership in Hungary by 2010 and expanded to over 50 export markets, establishing itself as an international player. With leading positions in multiple countries including Bulgaria, Romania, and Greece, the brand attributes its success to superior quality, competitive pricing, and effective marketing strategies.
Source: CPS GfK | Brand Footprint 2024 European FMCG and Beverage Ranking; hellenergy.com
Cheerful, colourful, delicious – that’s Haribo. From fruit gums and fruit chews to marshmallows and liquorice, Haribo offers around 1.000 different products, with Goldbears probably being the most popular. What started as a small family production of sweets 124 years ago, now spans more than 120 countries around the globe. HARIBO produces its treats in 16 locations worldwide, having opened its first production site in the US in 2023. Further variety comes as a result of the subbrands that continue to be added to portfolio.
Source: Source: CPS GfK, Kantar Worldpanel, Brand Footprint 2024 European FMCG Ranking ;*Ranked by CRP growth %; haribo.com
