SBWire

Meal replacement products are still something new in the country. Consumers are still unused to consuming such products on a daily basis. Most consumers who are trying these products are influenced by the typical fashion diet that appeals mostly to women. During 2012 high economic activity led to certain consumer segments seeing increased levels of disposable income. As these products tend to have a high unit price, consumption of meal replacement products was boosted by economic activity.

Frozen processed food manufacturers are with increasing success targeting the strong Danish convenience trend. Product launches positioned as convenient, high-quality and healthier semi-ready meals, such as Royal Greenland's Damp Fisken (The Steam Fish) and Flensted's Patatas Bravas, had a positive impact on value sales growth in frozen processed fish and frozen processed potatoes respectively in 2012. Semi-ready meals - a dynamic segment across several packaged food categories in Denmark -...

Chilled processed food remains popular among Bulgarians. Nonetheless, the category is rapidly approaching maturity. For this and other reasons, growth rates in the category slowed down over the second half of the review period. The abundance of traditional chilled processed food items and their enduring popularity among Bulgarian consumers is no longer sufficient to drive growth and the competitive landscape in the category is set to be restructured in the near future, which is expected to...

The poor performance of the economy during the recession had predictable consequences on retailing in Lithuania. The tradition of retailing imitating the movements of the GDP movement was noticed once again, with sales nose-diving. The country's economy rebounded, but the cost of the revival, such as soaring levels of unemployment and decreased wages, had a negative impact on the performance of retailers. Only in 2011, did turnover of players start to grow again.

Croatian consumers are strongly rejecting meal replacement products and their use remains marginal. Consumers buy these products only intentionally and when they do so, mostly through direct sellers, which is why international brands like Herbalife's Formula and Amway's Nutrilite remain popular. These products are expensive and are considered a luxury available only to those determined to change dietary habits and lose weight.

After the sudden losses and changes that occurred since the 11 March disaster in 2011, many Japanese people re-evaluated their lives. This trend led to a selective attitude when shopping for goods, and super premium beauty and personal care was no exception. People are continuing to spend money on what they think is important to maintain their skin complexion and appearance, but are cutting down on unnecessary products. High priced products that have won the trust of women in the wealthy class...

In 2012, soft drinks continued to record healthy growth. The area benefited from the expansion of the domestic segment and the increasing interest of consumers in soft drinks as a whole. Overall, growth is being driven by the healthy characteristics of soft drinks, the diminishing quality of tap water, very hot summer weather, new product launches, wider product assortments and the dynamic development of functional beverages. As a result, during 2012 total volume growth within soft drinks was...

Hot drinks saw a slow decline in volume and current value sales in 2012. Demand was undermined by the economic uncertainty following the global economic turbulence and the euro-zone debt crisis. This resulted in plummeting consumer confidence and more price-aware consumers. The clear winners in this environment were cheaper products such as private label.

The use of cotton wool/buds/pads is still prevalent amongst higher-income women. Products in the category are used for daily hygiene, with women frequently using them for cosmetic purposes - as applicators for creams, face lotions and make-up, for example.

The global economic downturn of 2008 and 2009 had a significant impact on sales of major appliances, with consumers reluctant to spend. Sales of major appliances have since returned to growth, thanks to robust demand in emerging regions like Asia Pacific and Latin America. With living standards rising in these regions, the industry is seeing growth in niches such as built-in appliances, innovative technologies and energy efficient models.

Other dairy is a very small category, as only three segments (cream, condensed/evaporated milk and coffee whiteners) are available in Ecuador. This is because Ecuadorians are still very traditional, and part of their culture is to consume and prepare fresh products, which is why many prefer to prepare their own desserts or to buy them from foodservice outlets, like bakeries and coffee shops.

Core Views

With a population of over 10 million people in 2012, Bolivia is a predominantly poor country and one of the least developed in Latin America. On the other hand, the country has recently seen robust economic growth and this has helped boost consumer income and spending despite wages still being the lowest in Latin America. A plethora of government initiatives and income transfers have reduced income inequality and brought a significant number of Bolivians out of extreme poverty.

While weak economic data out of Germany supports our below-consensus real GDP growth forecast for 2012, the collapse in business and consumer confidence has prompted us to revise down our 2013 GDP projection, to 0.8% from 1.3%. We expect growth to recover in the second half of the year, although this will be mainly driven by external rather than domestic demand. Certainly, German consumption will not come to the rescue of periphery eurozone states over the next few years, as households remain cautious and the government keeps focused on fiscal consolidation.

The negative growth recorded in luxury cigars throughout the entire review period resulted mainly from the combined effects of the economic recession and Switzerland's recently introduced public smoking ban. There is a sizable consumer group in Switzerland for whom cigar smoking is very much a dispensable luxury and the economic recession had the effect of reducing cigar consumption among this consumer group. In addition, the public smoking ban exacerbated the negative effects of the smoking.

Israel is exposed to key developed markets where growth is faltering and is now seeking to maximise opportunities elsewhere. Nevertheless, industry consolidation, coupled with currency depreciation, has affected the structure of the Israeli petrochemicals market and this could balance out the cost disadvantages that arise because there are so few sources of indigenous feedstock.

We forecast continued growth in Romania's pharmaceutical market due to greater private contributions to the cost of healthcare and a return to slight economic growth in 2013. The partial removal of elements of the clawback tax will undoubtedly provide the industry with a slight boost this year. In terms of debts and timeliness of payments, the CNAS is still within its remit to reimburse drugmakers some 210 days after request and almost RON6.3bn (EUR1.44bn) of debts remain unpaid to the industry. The tax remains most punitive for generic drugmakers with lower-value medicines and could lead to these cheaper medicines exiting the market. The tax continues to weigh down BMI's assessment of Romania's Pharmaceutical and Healthcare Risk/Reward ratings.

Luxury goods in the United Arab Emirates enjoyed another good year in 2012, with strong growth seen in both volume and value terms. Although the country suffered severely during the economic crisis of 2009/2010, the economy is now rebounding with positive business sentiment, strong job creation and political stability. The number of tourists visiting Dubai and Abu Dhabi also increased markedly in 2012. Many of these visitors come specifically to shop in the country's luxury boutiques and Dubai...

This quarter BMI has revised and restructured its tourism reports, incorporating a greater range of data and focusing on the hotel industry, the value of the tourism industry itself, and the impact of macroeconomic factors.

Turkey has a healthy construction pipeline, complete with numerous high-profile projects within both its infrastructure and residential/non-residential sectors, underpinning strong construction industry growth. Despite a high current account deficit, the significant cost of credit and structural flaws in the domestic banking and pension sectors, we remain optimistic about the industry's growth potential.

Colombia's world-class retail tissue and hygiene industry continued to develop and grow in 2012. The leading manufacturers invested in constant innovations and product developments to satisfy the needs of more sophisticated consumer groups, which demand more value-added features. Innovations included state-of-the-art technology features, the use of innovative components and smarter packaging, as manufacturers tried to expand their consumer base.

2013 is set to be a good year for the Port of Singapore as the Asian facility is set to regain its title as the world's largest container port, ceded to the Chinese Port of Shanghai in 2010. We project that Singapore will retain the number-one spot over our forecast period, and investments by the facility should also ensure its success in the long term.

Rising wheat costs were influenced by two key factors during 2012. One was the appreciation of the US dollar and the other was poor wheat harvest in both the domestic market and in Argentina, which is a significant source of imports. In addition the US experienced a serious drought that hit the major grain-producing regions of the country. Due to the decline in US production of soybeans, corn and wheat, the prices of these commodities in the international market soared in the second half of...

In Venezuela, the recent devaluation of the bolivar will weigh heavily on the import-dependent consumer, and we therefore forecast real private consumption growth to slow sharply from 7.0% in 2012 to 2.0% in 2013. Indeed, we are forecasting real GDP growth in Venezuela to halve in 2013, driven by a significant erosion in consumers' purchasing power due to the devaluation.

In the wake of the March 2011 Fukushima disaster, the Japanese government shut down many of the country's nuclear power plants for extensive safety reviews. The government tried to offset the resulting energy shortages via the 'Setsuden' (Energy Saving) campaign, which encouraged consumers and businesses to conserve electricity. Initially, ice cream producers were concerned that this would lead retailers to reduce their use of freezers, which would in turn impact negatively on ice cream...