POLAND Market Overview Katarzyna Piliszek-Kaminska Trade - PowerPoint PPT Presentation

POLAND – Market Overview Katarzyna Piliszek-Kaminska Trade Commissioner  katarzyna.piliszek-kaminska@international.gc.ca @KasiaPK

Let us handle the introductions Laissez-nous faire les présentations One of largest EU markets Population [million] GDP/ capita [pps] 1 Germany 83 ... ... ... 2 France 67 6 Germany 123 3 UK 66 ... ... ... 4 Italy 60 10 France 104 5 Spain 47 11 UK 104 6 Poland 38 12 Italy 104 ... ... ... 13 Spain 91 10 Greece 11 ... ... ... ... ... ... 20 Portugal 76 12 Portugal 10 21 Poland 71 ... ... ... 24 Greece 68 Source: Eurostat

Let us handle the introductions Laissez-nous faire les présentations Dynamic rise in disposable income

Let us handle the introductions Laissez-nous faire les présentations Evolving consumer trends • Increasing share of employees working at Busy lifestyle more than one job or longer hours • More time spent on entertainment activities • Growing number of working mothers New family model • Growing number of single households • Rising in disposable income Demand for higher quality, more premium products • Consumers willing to pay more for bio, Health-consciousness non-GMO, organic, superfoods • Price comparison, importance of value-for- High consumer awareness money • Price sensitivity • Increasing potential of small and mid-sized Regional development cities Source: Roland Berger, The Polish Grocery Retail Market in 2010-2020, November 2016

Let us handle the introductions Laissez-nous faire les présentations Convenience opportunity Convenience channel has grown revenue at an average rate of 14% p.a. and number of stores at 6%. Products Potential buyers • Ready or pre-prepared meals, • Supermarket, discount, e.g. cake mixes, pancace mixes, convenience chains grain mixes • Coffee chains with CEE • Healthy snacks: fruit snack procurement in Poland: Green bars, veggie chips Caffe Nero, Costa Coffee • Specialty products distributors, e.g. Viands, DeCare, Levant

Let us handle the introductions Laissez-nous faire les présentations Naturally healthy food opportunity Products Potential buyers Consumer-ready products Consumer-ready products • Hemp products • Specialized organic and bio distributors, e.g. BioPlanet • Grains and grain mixes • Specialty products distributors, • Healthy snacks: fruit snack bars, e.g. Viands, DeCare, Levant veggie chips • Supermarket and discount • Meat substitutes chains • Bio and organic products • „Free from” products

Let us handle the introductions Laissez-nous faire les présentations Gourmet products opportunity The gourmet products niche is expanding following the increasing affluence of the Polish society. Products Potential buyers • Bison, beef meat and meat • Specialty products distributors, products e.g. Viands, DeCare, Levant, Kuchnie Świata • Consumer ready fish and seafood specialties • Cooked lobster products • Wine • Craft beer

Let us handle the introductions Laissez-nous faire les présentations HoReCa oppourtnity Hotel and restaurants constitute only 2% of household budget in Poland vs. 4% in Germany, 7% in the Netherlands or 12% in Greece. Annual market growth rate exceeded 5% in last 4 years. Products Potential buyers • Bison, beef meat • Specialty products distributors, e.g. Viands, DeCare, Levant • Live lobster • Scallops, snow crab, oysters • Salt-water and fresh-water fish species • Wine • Craft beer

Let us handle the introductions Laissez-nous faire les présentations Strong local agriculture and processing Total food exports, 2018: 43 bn CAD Total food imports, 2018: 29 bn CAD Meat and Oilseeds and Others, meat oilseed products, Fruit and 29.20% products, Others, 11.50% fruit 22.20% 36.60% products, 11.50% Tobacco Fish and and fish cigarettes, products, Fruit and 11.50% 10.90% Alcohol fruit and products, alhocol 6.60% products, Meat and Sugar and 4.10% meat sugar Grains and products, products, Grains and Coffee, Dairy, Milk and grain Sugar and 9.20% 8.40% grain tea, cocoa, 4.80% Fish and dairy products, sugar prodcuts, 6.30% products, fish 7% products, 4.70% products, 7.60% 5.40% 7.50% Source: IERiGZ- PIB, „Handel zagraniczny produktami rolno - spożywczymi”, April 2019

Let us handle the introductions Laissez-nous faire les présentations Fish and seafood opportunity Polish producers supply private label to Western European supermarket chains and white label to producers. There are in total about 300 fish processors in Poland. CETA tariff reduction Product From To Lobster 6%-16% 0% frozen, live, fresh or chilled Pacific salmon 2% 0% and pacific salmon fillets fresh, chilled, frozen (incl. sockeye salmon) Shrimps and prawns 12% or 18% 0% frozen Halibut 7.5% 0% frozen, fresh, chilled Scallop 8% 0% Hake 15% 0% and hake fillets frozen Cod 12% 0% and cod fillets frozen, fresh, chilled Herring 15% 0% and herring fillets frozen, fresh, chilled

Let us handle the introductions Laissez-nous faire les présentations Naturally healthy ingredients opportunity Polish producers supply private label to Western European supermarket chains and white label to producers. The market is highly price-sensitive. • Oilseed farming products: soybeans, flaxseed, mustard seeds • Pulses: lentils, chickpeas, pulses • Quinoa • Wild rice • Hemp and hemp ingredients • Cranberries • Blueberries • Value-added ingredients: flours, proteins, oil extracts

Let us handle the introductions Laissez-nous faire les présentations Poland as gateway to CEE • 20 markets sharing history, traditions, similar languages • In total 134 m inhabitants (excl. Russia), Poland is the largest market with 38 m follwed by Romania with 20 m • Poland well positioned as logistics hub between Western and Eastern Europe • Multinationals often locate regional HQs and procurement in Poland, e.g. Maxima Group • Polish companies operate in other CEE markets, e.g. DOZ

Let us handle the introductions Laissez-nous faire les présentations Retail and distribution structure Segment: Traditional trade High share of traditional trade and soft franschise – decentralized purchasing and distribution Large number of wholesalers supplying tranditional trade and soft franchise Volume: Medium Accessibility: Low Segment: Modern trade Dominating discounter format with lowest price strategy Two premium supermarket chains went bancrupt in recent years Chains purchasing directly or through specialized distributors/importers depending on product category and volume Volume: High Accessibility: Medium Segment: Specialized trade Specialized store chains and distributors supplying trade and HoReCa: ➢ Kuchnie Świata, Levant, De Care – wordwide cuisine ➢ BioPlanet, Organic Farma Zdrowia – bio and organic products Volume: Low Accessibilty: High

Let us handle the introductions Laissez-nous faire les présentations Typical retail formats Traditional Convenience Discounter/ Hypermarket Supermarket 20% 24% 40% 16% Share in sales value Source: Roland Berger, The Polish Grocery Retail Market in 2010-2020, November 2016

Let us handle the introductions Laissez-nous faire les présentations Top retail players Source: Roland Berger, The Polish Grocery Retail Market in 2010-2020, November 2016

Let us handle the introductions Let us handle the introductions Laissez-nous faire les présentations Laissez-nous faire les présentations Your contact in Poland Ms. Katarzyna Piliszek- Kamińska Trade Commissioner Agriculture and Processed Foods  Katarzyna.piliszek-kaminska@international.gc.ca @AmbasadaKanady @CanadaPolska @CanadaPoland #CanadaPL @KasiaPK