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Austrian Market Overview
• Population: 8.26 million (OECD, 2008)
• Capital: Vienna (1.65 million),
Graz (244,537), Linz (188,407) and
Salzburg (148,549).
• Inflation rate 3.8% (Statistik, 2008).
• GDP-real growth rate 3.3% (OECD,
2006).
• Unemployment is falling, currently at
3.4% (Statistik, Q2 2008).
• 62.1% of the population are aged
between 15-59 (Statistik, 2008).
Austrian Market Overview
• Currency: Euro
• VAT on goods & services: 20%
• VAT on Food: 10%
• Global Exports (2007): €114.8 billion (Statistik, 2008)
• Imports (2007): €114.25 billion (Statistik, 2008)
• Top Import partners in 2006: Germany (40.8%), Italy (7%), France
(4.8%), USA (4%), Switzerland (3.3%) and Czech Republic (3.3%)
(OECD, 2008).
Irish Food Export Performance 2007
Source: CSO Food and Drink Statistics 2007
Fish
3%
Sugars
12%Other*
5%
Dairy
21%
Meat
3%
Beverages
18%
Miscellaneous
edible
38%
Irish Food Exports to Austria for 2007
* Includes cereals, extracts, animal feeds, fruit and vegetables.
Total Exports:
€11.2 mn
The Retail Market
• Austria is one of the world’s wealthiest countries, with a CIA (Central Intelligence Agency, America) ranking of number 16 in terms of GDP per capita (PPP).
• It has above average per capita income, and is the 4th wealthiest country in the EU with a purchasing power 23% higher than the EU average (Business Location Austria, 2007).
40.02
19.06
47.62
148.8
2008e
39.8%
18.60
45.60
143.5
2007
39.7%Grocery as a % of Retail
18.07Total Grocery Market (€bn)
45.48Total Retail Market (€bn)
137.4Consumer Spend (€bn)
2006
Source: IGD Data centre estimates
European & Global Grocery Retail Market Sizes
24.2010. Sweden
123.804. Italy
18.5611. Austria
34.586. Greece
32.297. Switzerland
30.688. Netherlands
30.039. Belgium
97.555. Spain
144.193. Germany
185.702. United Kingdom
208.031. France
Grocery Retail Market(€bn)
Country
Top 10 Western European Markets
165.649. Italy
249.116. India
130.5110. Spain
192.927. Germany
24.8333. Austria
278.334. France
249.205. United Kingdom
188.028. Russia
394.453. Japan
450.142. China
785.851. USA
Grocery Retail Market(US$bn)
Country
Top 10 Global Markets
Source: IGD Country Presentations (2007)
Austria: Top 10 Retailers 2006
Source: IGD Country Presentations Austria
210,2001402.37%+2.3440440M- Preis
288,4271,2464.12%-7651,281Zev Markant
95,60412-+2.97911,744Metro
110,5001702.75%+9.7510510Lidl
287,00041014.40%+4.12,6742,674Aldi
972,5021,41724.25%+4.54,5004,500Spar International
183,4553753.12%+4.05791,000Tengelmann
+2.7
+2.4
% Change
Grocery Sales
2006 v 2005
285,0837506.23%1,4431,443Adeg
1,383,8001,40122.33%4,1454,842Rewe
Sales Area
(sqm)
No. of
Stores
Grocery Retail
Market Share *(%)
Grocery
Sales
(€m)
Total
Sales
(€m)
Retailer
*Grocery Retail Market Shares exclude cash and carry operations.
Retail Market Share 2006
Source: IGD Country Presentations Austria
Spar
28%Metro
2%Edeka
3%
Other
3%
Tengelmann
5%
Lidl
4%
ZEV Markant
3%
Aldi
16%
Rewe
36%
Retail Grocery Market
• Austrian grocery retail market is worth €19.1billion (2008 est.),
accounting for 40% of total retail market (IGD, 2008).
• The discount sector remains one of the fastest growing sectors in
Austria and Aldi is the clear leader. Others in the market include
Plus/Zielpunkt, Penny/Mondo and Lidl. The Austrian consumer now
looks for quality in their discounters while previously they simply looked
for price (Euromonitor, 2008).
• The market is dominated by German retailers with Tenglemann, Rewe,
Aldi, Lidl, Metro and Edeka all present in the market. This is due to the
linguistic, cultural and historical links between the two countries.
Key Consumer Trends in the Market
• Growing concern over health and well being
– Retail market for health and wellness food in Austria grew by 5% in value in 2006 and 18% of all revenues from food sales and 44% ofall money consumers spent on drink in Austrian shops was derivedfrom healthier varieties.
• Organic becoming increasingly important
– highest percentage of organic farmland in the EU, Italy in second place (Eurostat, 2007).
– 13% of all farmland is organically cultivated (Bio Austria, 2007)
– 87% of Austrians regularly purchase organic food (Lebensministerium Austria, 2008)
Foodservice in Austria-facts and figures
• Sales in consumer foodservice in 2006 amounted to €7.85bn,
which was a growth of 1.7% on the 2005 value (Euromonitor,
2008).
• The total number of foodservice outlets in Austria in 2006 was
49,231 and of these only 1,568 were part of a chain or 3.2%
(Euromonitor, 2008).
• The total average annual expenditure on café, restaurants, and
hotels per household makes up 5.5% of total expenditure or €1,676
per annum
• Consumer foodservice in Austria is forecast to grow at a rate of
8.5% in the period 2006-2011 or a CAGRate of 1.7% in the same
period.
Foodservice in AustriaTrends
• There are three major trends currently shaping the consumer foodservice market. These are:
1. Ever-increasing pace of living - leading to demand for faster services and the need for greater convenience. The number of hours spent working per week has increased steadily since 2002 which is also fuelling this faster lifestyle (Euromonitor, 2008).
2. Long term trends toward single person households who are unwilling to cook for one person - driving the sales of 100% home delivery or takeaways. Approximately 25% of all households in 2006 were single person households. This leads to opportunities across all aspects of foodservice from take-aways to full service restaurants (Euromonitor, 2008).
3. The Health and wellness trend is leading to healthier food, fresh ingredients and smaller portions. Fish and seafood are becoming increasingly more popular and poultry schnitzel’s have been successfully launched. Low carbohydrate dishes are becoming sought after e.g. salad (Euromonitor, 2008).
Foodservice in AustriaTrends
• Greater acceptance of foreign cuisine
– Consumers are becoming more exposed to international trends and more experimental in terms of choice of cuisine. This has led to an increase in sales for full service restaurants that serve Japanese, Chinese and Oriental food in particular. This is expected to continue (Euromonitor, 2008).
• Chains play a minimal role in the overall Austrian foodservice industry. Independent outlets generate the majority of sales. Only McDonald’s and Tchibo Holding play a significant role in terms of presence and sales. Austrian’s are sceptical about new international chains due to their conservative tastes. This has led to fast food being underdeveloped with only McDonald’s having significant market share (Euromonitor, 2008).
FoodserviceEstablishments
1.41.3Coffeeshop Company
1.71.6Testa Rossa Caffee
1.91.9Schnitzel Haus
2.32.4Aida
2.32.3Petit Bistro
2.42.4Pizza Mann
4.03.7Burger King
4.64.5Nordsee
15.415.5Tchibo
38.439.1McDonald’s
20062005Company
Chained Consumer Foodservice Brand Shares by % Value.
Source: Euromonitor. 2008 Consumer Food Service Austria.
Foodservice Establishments
• McDonald’s
– In 2006 they had a 38.4% market share and were the only
international food service chain with a significant market share.
– In 2007 they had 163 outlets which generated a turnover of €365
million.
– There were 117 million visits to McDonald’s Austria in 2007 which
was up 10.4% on 2006 and they employ around 7,000 people.
Foodservice Establishments
• Tchibo
– Operates under the fascia Eduscho in Austria
– This is a shop which specialises in coffee and bedding. They have
weekly special offers for coffee and other household items.
– This is a German brand and its brand awareness is extremely high
in Germany at 98% awareness (Tchibo website, 2008)
– Their food selection now also covers Tchibo branded chocolate.
– Now offers travel packages.
Foodservice Establishments
• Nordsee
– Have benefited from the health trend in Austria and have furthered
this with their advertising of “Fisch verliebt” or “in love with fish” in
English.
– They operate 44 stores in Austria but turnover is not available
though they do make up 4.6% of the chained consumer foodservice
brand share by value.
Reasons for targeting Austria
• Part of German language speaking zone along with Germany and
Switzerland with similar consumer habits
• Good opportunity for targeted premium/niche brands
• Strong economy
Barriers/challenges in supplying Austrian market
• Self sufficient in main agricultural product categories
• Strong support for locally produced/sourced dairy and meat products
Bord Bia services 2009
• Bord Bia Austrian market visit June 2009
• Market queries handled by Bord Bia office in Frankfurt staffed by Liam MacHale & Fiona O’Toole
Services include: Itinerary Development, Category Analysis, Media review and translation services, Product Price auditing and tracking, Product retrieval, Buyer networking, Distributor search
Bord BiaWöhler str. 3-560323 FrankfurtGermanyTel: +49 69 710 423 255Fax: +49 69 710 423 200Email: [email protected]