Margarine - Armenia | Statista Market Forecast

The Margarine Market within the Oils & Fats sector in Armenia is witnessing subdued growth, influenced by shifting consumer preferences towards healthier alternatives, economic challenges, and competition from butter and other spreads. These factors are moderating market expansion.

Customer preferences: Consumers in Armenia are gravitating towards healthier dietary choices, prompting a notable decline in margarine consumption as they favor natural products like butter and plant-based spreads. This shift is particularly pronounced among younger demographics who prioritize organic and locally sourced ingredients. Additionally, the rising awareness of health issues related to trans fats is influencing purchasing decisions, while cultural traditions that favor homemade spreads further challenge the margarine market's growth prospects. Lifestyle changes, including increased cooking at home, also play a significant role in shaping these consumer preferences.

Trends in the market: In Armenia, the Margarine Market within the Oils & Fats sector is experiencing a significant decline as consumers increasingly shift towards healthier alternatives like butter and plant-based spreads. This trend is notably strong among younger demographics, who prioritize organic and locally sourced ingredients. The rising awareness of health concerns linked to trans fats is further shaping purchasing behaviors, while traditional culinary practices favoring homemade spreads present additional challenges for margarine's growth. As more individuals embrace home cooking, industry stakeholders must adapt by innovating product offerings and emphasizing natural ingredients to remain competitive.

Local special circumstances: In Armenia, the Margarine Market within the Oils & Fats sector faces unique challenges influenced by cultural preferences for traditional cooking and local ingredients. The strong culinary heritage emphasizes homemade spreads, diminishing the appeal of processed margarine. Additionally, Armenia's geographic diversity fosters a rich variety of dairy products, leading consumers to favor locally sourced butter over margarine. Regulatory concerns around trans fats further push health-conscious consumers towards organic alternatives, reshaping market dynamics and prompting industry players to innovate with natural ingredients that align with local tastes.

Underlying macroeconomic factors: The Margarine Market within the Oils & Fats sector in Armenia is significantly influenced by macroeconomic factors such as national economic stability, consumer purchasing power, and global commodity prices. As Armenia's economy navigates fluctuations in foreign investments and remittances, consumer confidence directly impacts spending on processed foods like margarine. Additionally, rising global prices of oils and fats can affect production costs, leading to price adjustments that may deter budget-conscious consumers. Fiscal policies promoting local agriculture and sustainable practices further encourage innovation in the market, shifting consumer preferences towards healthier, locally sourced alternatives. These dynamics are reshaping the competitive landscape, urging manufacturers to adapt to evolving market conditions.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.