ZF English

Beer market heading for 1bn euros

10.04.2006, 00:00 11

The beer market will exceed the 800m-euro mark in 2010, with sales to grow at a 2-3% pace annually. While volume booms were registered between 2002-2004, a boom of brands included in the premium categories of the market is expected in the wake of EU integration.

"The beer market will see growth similar to the growth average posted in Central and Eastern Europe, of 2.5% annually. In line with our estimates, the market will reach some 17 million hectolitres in 2010," says Edwin Botterman, chairman of Brau Union, leader of the domestic beer market, with turnover worth 158.6 million euros in 2004.

Botterman believes the increase will be higher in terms of value due to inflation and the rising market share of the more expensive beer brands.

How did the beer market look in 2005?

With a 4.7% increase in sales, the beer market last year revolved around the value of 600 million euros, unchanged from 2004. This was due to the rising consumption on the segment of PET beer, lower sales of bottled and canned beer and a constant evolution of draft beer. According to data released by "Romania''s Brewers" Association, Romanians drank approximately one million hectolitres of draft beer last year, that is around 6.3% of the total volume, while canned beer accounted for about 7.8% of the beer sold in 2005. Bottled beer consumption was 54.5% of the total, while PET beer dominated more than one third of the market.

In exchange, domestic market players say the beer market will hold much more brands in four years'' time, but consumers will also be more demanding, harder to lure. Quality will be a key factor, and brands will be more powerful.

Beer consumption will get closer to the European average, of 80 litres per capita, compared with around 65 litres at present. The development of the hospitality industry will play a major part in the rise of the premium and super-premium segment.

"Beer consumption in restaurants and bars will increase as Romanians will go to such locations more often," believes Botterman.

The Romanian beer market is among the most competitive in Europe, the more so as Western markets are generally dominated by three international players controlling 80% of the market.

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