The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.

The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.
The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia, Lithuania.

Friday, 3 August 2018

Analysis of the Romanian Organic Foods&Beverages and Agribusiness Sector


What are the opportunities presented by the Romanian organic and bio foods sector? What factors are influencing the 30% growth of the market? Which are the most dynamic local organic food processors, importer-distributors of ecologic FMCG and Romanian producers of bio foods?

FRD Center Market Entry Services has researched and analysed the local specifics.

The Romanian market of organic and bio products is a very dynamic one, registering interesting growths for several years now. The local players register double-digit or higher y-t-y growths, presenting interesting crossborder acquisition opportunities for foreign producers and processors.

Organic foods, cosmetics, ingredients etc. are more and more in demand. Nevertheless, compared to other markets in EU, the Romanian organic market is still in an incipient stage.

The domestic consumption of organic, bio and raw foods in Romania has been on an upward trend in the recent years. The organic consumer market was estimated by the USDA at U.S. $45 million in 2016, an increase of more than 30% compared to 2014. Players in the market estimate that the 30% y-t-y growth has maintained also in 2017 and they expect to continue at a similar rate till 2020.

The growth of the organic foods market in Romania is the result of a combination of a variety of factors, such as a higher purchasing power, better consumer education, more options in respect to bio-food retail stores as well as supermarket chains with areas dedicated to organic products etc.

Organic food processors and retailers also play an important role due to efforts to create and support affordable brands. Large retail chains created separate sections for organic processed products that offer a wide range of mostly imported products.

More and more Romanian importer-distributors of organic and bio products organise B2B and B2C events to promote a healthy lifestyle and raw-vegan products.

What is the current situation on the organic foods market in Romania? Who are the main players in the Romanian bio foods processing and distribution sector? How to enter the Romanian organic foods and beverages sector? How to acquire a local food processor and producer of organic food products?

Organic baby food is one of the most successful product categories in Romania, growing approx. 5-6 times during 2012-2017. Similarly, consumption of organic dairy products (butter, drinking milk, yoghurt, cheese) almost tripled during 2012 – 2017.

In terms of companies' dynamics, for example, companies such as Agri Mondo which distributes organic cereals and organic oil seeds registered, according to an FRD Center analysis based on official data, a 30% sales increase in 2017.

Others, much more, such as for example Biochem Organics which distributes organic agricultural products, such as: soft wheat, barley, maize, rye, sunflower, rapeseed, soybean, coriander etc. They registered, according to the same analysis, a y-t-y sales increase of 110% in 2017.

Organic farming is a dynamic sector in Romania that has seen an upward trend in recent years. According to Eurostat data, in 2015 there were 297% more organic farms in Romania compared to 2010, counting nearly 12,000. Many of these farms and companies are exporting most of their crops.

Several non-governmental organisations promoting organic farming have been set up recently. Some of them are: Bio Romania, Romanian Association for Sustainable Agriculture, EcoR Partener, National Federation of Organic Agriculture, Bioterra, Bioavirom etc. Many of them are formed of local farmers cultivating or growing organic and bio products.

For tailor-made market research and market opportunity assessment, for B2B matchmaking with players in the Emerging Markets in Europe, for M&A assistance, background checks and in-depth profiling of players, for target origination in Romania and other markets in Eastern Europe feel free to contact the FRD Center team at:
email: europa@frdcenter.ro or tel: +4021 411 1459/60/61

In regards to locally produced organic foods, the surface cultivated with organic vegetables in Romania has doubled in the last seven years. The local demand for organic vegetables "made in Romania" is very high and the market is still at the beginning. Additionally, the external demand is increasing and most of the local players export their products.

For example, Ecofruct, a company which collects organic forest fruits, medicinal plants, herbs and mushrooms which originate in the flora of the Romanian Carpathian Mountains, registered in 2017 a y-t-y turnover growth of 126% according to an FRD Center analysis based on official data.

Primagra is a producer and exporter of sea buckthorn berries. It exploits organically a farmland for the research, multiplication and production of sea buckthorn. Their sales increased in 2017 with 24% compared to 2016.

Another type of very popular bio foods are the bee products. For example, Apiprodex is a company specialised in the production and processing of organic honey and apiary products. In 2017, according to the same analysis, their sales figure increased 51% mainly due to increasing exports.

Premium Fruct produces bio fruit juices under the brand Profructta. Profructta is a Romanian facility producing 100% natural juices, made of chemically unaltered and genetically unmodified fruit, carefully picked in the orchards of Campulung Muscel, without any sugar, colouring agents, and preservatives added. In 2017, according to an FRD Center analysis based on official data, their sales increased 77%.

In respect to organic grains cultivated in Romania, the largest growers are foreign nationals residing in Romania. For example, Orgapic Iaşi owned by the German Klemens Wilhelm Tonnies (over 3600 ha), Agricola Alba held by Casa Lionello owned by EUROVO from Italy and Ferma Lionello SRL (over 3600 ha) or Luciano Martini, the shareholder of Emiliana West Rom (over 2000 ha).

Product marketing and storage is an important element of the organic farming chain.

The total surface of organic farming in Romania registered 258470.927 ha in 2017 which, according to the FRD Center analysis represents a growth of more than 14% compared to 2016.

According to the same sources, the organic cereals crops surface has grown in 2017 almost 13%, reaching 84925.51 ha, while the growth of the industrial crops surface went up 35.6% in 2017 vs. 2016, reaching 72388.33 ha. Also, in 2017 compared to the prvious year, the surface of green harvested plants increased 42.5% reaching 20350.75 ha. The permanent crops of vineyards, fruit trees, nuts etc. went up 9.5% in 2017.


For a FRD Center Analysis of the Modern Food Retailers in Romania visit http://market-entry-romania.blogspot.com/2018/07/analysis-of-modern-food-retailers-in.html

For more details about the FRD Center M&A advisory services in Romania and Emerging Europe go to this link: http://market-entry-romania.blogspot.com/2018/07/the-frd-center-m-advisory-services-in.html

Are you interested in learning more about the continuous developments in the Ready-Meals Market in Romania? Visit http://market-entry-romania.blogspot.com/2018/03/ready-meals-market-in-romania.html

For a FRD Center Analysis of the main Romanian Meat Processors consult the business blog posting at http://market-entry-romania.blogspot.com/2018/07/analysis-of-main-romanian-meat.html

For more details about M&A Opportunities in the Meat Processing Sector in Romania visit http://market-entry-romania.blogspot.com/2018/01/m-opportunities-in-meat-processing.html

Are you interested to export fish and seafood to Romania and Eastern Europe? Visit http://market-entry-romania.blogspot.com/2018/01/are-you-interested-to-export-fish-and.html


How to reach the importer-distributors, direct buyers at decision maker level and present your offer? For B2B contacts feel free to contact the FRD Center team at: email:europa@frdcenter.ro or tel: +4021 411 1459/60/61

For more details about the FRD Center services for Trade Missions and Trade Delegations to and from Romania, Poland, Hungary, Bulgaria etc. go to this link: http://market-entry-romania.blogspot.com/2018/06/services-for-trade-missions-and-trade.html

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