In BMI's Business Environment Ratings, Poland remains third out of the 14 key market surveyed in Central and Eastern Europe (CEE). Despite the deterioration in the external environment, the strength of domestic demand has shielded the economy from adverse developments in global markets, although, we nonetheless caution that growth is set to slow considerably. Indeed, with eurozone consumption cooling and international credit markets remaining tight, momentum for the economic growth cycle will be distinctly lacking over the course of 2009-2010. Consequently, we expect economic growth to continue moderating towards 3.5% in 2009 and 2.8% in 2010. Nevertheless, the key factor driving growth dynamics to date has been the resilience of consumer spending, boding well for food and drink consumption, which is forecast to reach US$3.9bn in 2013, rising by 16.8% in relation to 2008 levels. The Polish food and drinks industry is continuing to consolidate, under pressure from economic factors, as also due to an expansion of larger foreign players, although not even multinationals are immune to the current slowdown. To this end, in January 2009, the local subsidiary of Coca-Cola announced that it would make 150 workers redundant, in an effort to streamline costs. A recent report by beverage researcher Canadean indicated a deceleration in the growth of the overall European soft drinks market, although figures for both Poland and Romania remained bullish. In the meantime, Polish feedstock producers welcomed the overturning of the ban on import, production and use of animal feed derived from biotech crops. Given the increased foreign competition to the majority small-farm-based agricultural sector, the pressure to increase productivity is substantial, leaving many with no option but to use genetically modified and higher yielding seed types. The development is all the more significant, given the impending removal of the EU's Common Agricultural Policy (CAP) subsidies is imminent, as well as the recent lifting on a Chinese ban on Polish meat exports. Competition in the country's mass grocery retail (MGR) sector is also set to increase, following the announcement by the Polish subsidiary of UK retail giant Tesco that it would cut the prices it pays to some of its suppliers, in view of strong competition. French MGR operator Auchan is to rebrand its supermarkets in Poland under a new 'Simply Market' banner, which will be complemented by significant investments in existing stores. Nevertheless, hypermarkets are expected to remain the leading MGR format in the coming years, although discount stores are likely to gain substantial ground in the short-term at least, due to the increased price sensitivity among consumers.
For more information or to purchase this report, go to http://www.fastmr.com/
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.
BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including Daily Alerts, monthly regional Insights, and in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at http://www.fastmr.com/
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
