Dallas, TX -- (SBWIRE) -- 01/24/2012 -- Packaged food value growth over the 2006-2011 period is set to peak in 2011 at 3% in current terms. Although the two categories that account for almost half of packaged food value sales in 2011 - dairy and bakery - are facing saturation, all other packaged food categories apart from ice cream and soup have been fairly dynamic. In addition, ahead of all other categories, noodles, is set to record promising value growth of 7% in 2011. As the economic crisis is over and unemployment has fallen, consumers are returning to their previous purchasing habits.

Convenience and healthy food the dominant themes in 2011

More Austrian consumers became increasingly concerned about their weight over the review period and there has thus been growing interest in losing weight via the consumption of meal replacement products and ‘diet’ snack bars. Underneath the wishful thinking and temporary attempts of many consumers to lose weight, there are very real health concerns in the country. According to the latest 2010 data from the OECD, 11% of Austrians are obese and 40% overweight (including obese). Thus, more manufacturers are positioning their products as ‘healthy’ to address these growing concerns.

Domestic players threatened by international competitors

In 2011, artisanal producers – mainly bakeries – continue to dominate the Austrian packaged food competitive landscape. In terms of brand manufacturers, dairy companies feature strongly, with the most prominently positioned being the domestic dairy player Berglandmilch GmbH, albeit with a small share. International companies are nonetheless also quite significant, especially Kraft Foods and Unilever.

Discounters feel the pinch as consumer confidence picks up

Overall, grocery retailing has remained predominant in Austria, with most packaged food sales generated by supermarkets/hypermarkets. Within grocery retailing, the discounter channel is set to register a slight loss in share in 2011. As the economic crisis has come to an end consumers have stopped worrying so much about their spending. The strongest growing channel is internet retailing, with many manufacturers opening their own online stores and known online platforms like amazon.de also offering packaged foods.

Slow growth forecast

Over the forecast period packaged food in Austria is predicted positive, albeit weak, growth. The industry is likely to witness stronger competition between private label and branded products, characterised by more premium launches like organic and fairtrade items alongside more competitively-priced products.

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