Published: November 2011
Price: $ 6500
This Euromonitor market report provides market trend and market growth analysis of the Packaged Food industry in Italy. With this market report, you’ll be able to explore in detail the changing shape and potential of the industry. You will now be able to plan and build strategy on real industry data and projections.
The Packaged Food market in Italy research report includes:
• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic volumes and values, company and brand market shares
• Five year forecasts of market trends and market growth
• Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
• What is the market size of Packaged Food in Italy?
• What are the major brands in Italy?
• As economic prospects slowly improve, are consumers starting to eat out more and spending less time cooking at home?
• How is private label performing in the wake of retail consolidation and the global economic hangover?
• Do consumers want value for money or added value?
Why buy this report?
• Gain competitive intelligence about market leaders
• Track key industry trends, opportunities and threats
• Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Packaged Food market research database.
• Each report is delivered with the following components:
• Report: PDF and Word
• Market statistics: Excel workbook
• Sample Analysis
EXECUTIVE SUMMARY
Slow economic recovery impacts sales
The pace of economic recovery in Italy in 2011 was slower than previously anticipated, and the level of unemployment remained significantly higher compared to pre-recessionary years, which was reflected in the still cautious attitude of consumers towards spending. In 2011, foodservice volume sales continued to suffer as many Italians were still reluctant to spend money on meals away from home. Additionally, Italians were still looking for bargains and cut back on some higher priced items in retail, although functional healthy products and occasional small luxury treats helped to support sales of such products as soy drinks and higher quality boxed chocolates.
Polarisation continues to impact sales
Due to the pessimism regarding Italy’s economy, families dined out less often and opted to prepare home-cooked food. However, not all consumers were opposed to paying a premium for healthier options, such as organic food, or high-end products to indulge in while dining at home. On the one hand, increasing price sensitivity resulted in growing consumer demand for economy products, boosting sales of economy brands and private label products. On the other hand, demand for premium products also continued to increase, with many using packaged food to provide affordable indulgences during a time of economic hardship. Many thus sought to economise in general in packaged food, while still purchasing a small number of premium products as treats. As a result, there was polarisation across many product areas, with mid-priced brands tending to lose share.
Modest gains made by private label
Private label was on the radar of retailers and manufacturers throughout the recession, as consumers faced tougher economic conditions and rising unemployment, and sought to cut the cost of their grocery shopping. In addition, with intense competition and a reluctance to increase prices significantly to cover costs amidst weak consumer spending, private label has become more than ever a way to achieve a profit. On the whole, private label made gains in 2010 in Italy. However, the increases were not as strong as might have been expected and not all categories benefited equally. This was mainly due to the fact that in Italy manufacturers tend to be stronger than retailers, and thus have more negotiating power when it comes to setting retail prices.
Economic concerns shape distribution
Supermarkets/hypermarkets dominate sales of packaged food and continued to gain share throughout the review period. This channel is the obvious choice for increasingly time-pressed Italian consumers, with wide ranges, ease of parking and long opening hours offering high levels of convenience. This channel also benefited from these retailers expanding their private label ranges to include more value-added, indulgent and organic options. However, not surprisingly, in view of the economic situation, many consumers shifted towards more competitive distribution channels in 2010-2011, primarily grocery discounters and internet retailing.
Marginal growth expected due to ongoing economic concerns
Overall packaged food constant value sales are set to increase very slightly over the forecast period. The polarisation observed in 2010 and 2011 will continue, with growing demand for the best deals on one hand, including private label and family formats in bulk ice cream or yoghurts, for instance, and the fragile loyalty of upper-middle income groups to upmarket products on the other. In addition, many categories are likely to become more dependent on in-store promotions and discounts in staple products like dairy products. Consumer lifestyle habits will remain busy, aiding growth in meal solutions more than in nutrition/staples, while impulse/indulgence products will continue to bear the brunt of the weak nature of the economic recovery. Naturally healthy, additive-free and organic packaged food should further develop at the expense of better-for-you and functional food, which will face more stringent EU legislation about claims.