The price of butter in Poland has surged dramatically, with some predictions suggesting it could reach 10 PLN per pack by mid-2025, according to a report by UCE Research and the Blix Group. In the past year, butter prices have spiked by as much as 30%, with the most significant increases seen in hypermarkets and cash-and-carry outlets.
From January to November 2023, butter prices rose an average of 2% year-on-year. However, the latter half of the year saw steeper hikes, with hypermarkets reporting a 43.5% increase in August and cash-and-carry stores experiencing a staggering 54.3% jump in October. Small convenience stores bucked the trend briefly, with a 1.1% price drop in September, only to see a 24.7% rise the following month.
Causes Behind the Surge
Experts attribute the rising prices to reduced milk production in Europe, leading to record-high dairy product costs on international markets. Another factor is the declining number of promotional campaigns, down 13.8% compared to 2022. While cash-and-carry and supermarket promotions dropped significantly, discount stores offered more deals, up 8.9%.
Dr. Krzysztof Łuczak of the Blix Group explains, “The reduced supply of milk is creating strong upward pressure on butter prices.” Retailers are also recalibrating their promotional strategies, opting for less frequent but deeper discounts to make a more lasting impact on consumers.
The Role of Butter in Shopping Decisions
Butter remains a staple for Polish households, influencing where consumers choose to shop. Retailers often use butter promotions as a competitive tool. However, with the rising cost of organizing discounts, experts predict fewer but more impactful promotions, especially during the holiday season.
What Lies Ahead?
While the report anticipates attractive holiday deals on butter, regular prices are likely to continue climbing in 2024 and beyond. Analysts warn that external factors like rising energy costs and milk prices could drive the average cost of butter to 10 PLN per pack sooner than expected.
As stores balance promotions with profit margins, consumers may need to prepare for tighter budgets while shopping for this essential product.