As domestic wages in the Czech Republic continue to converge with its Western peers, we expect Czech households to demand higher-value consumer goods from abroad. The Czech economy is undergoing a cyclical upswing, with real GDP growth set to accelerate to 2.7% in 2017 and 2.6% in 2018.
This bodes well for projected increases in consumer spending on food and drink in the country. However, given the mature stage of many parts of the industry, BMI expects that the trend to premiumisation will remain the key growth driver.
Key Trends And Industry Developments
Food sales in the Czech Republic will grow steadily in local currency terms in 2017 and throughout the forecast period to 2021. Growth will be fairly substantial in 2017 at almost 10%, followed by climbs of around 7% annually through to 2021.