At first glance, Bulgaria may not seem like the most captivating of markets for health and wellness companies - per capita incomes are the lowest in the EU and the economy contracted by 5.1% in 2009 due to the effects of the global economic crisis, according to Euromonitor International.

On the other hand, however, Bulgaria's consumer market developed significantly between 2004 and 2009. Consumer spending increased by a total of 16.7% in real terms during this period and per capita annual disposable income grew by 10.1% (also in real terms), reaching BGN 4,413 (US$3,137) in 2009.

2009 was the only year during the review period when consumer spending actually declined, by 7.5% in real terms year-on-year. It is expected to start increasing again in 2010-2011 as the overall state of the economy improves and employment rises.

When talking about the Bulgarian health and wellness market, yoghurt is the obvious starting point. Given its long history as a staple food, it is hardly surprising that plain spoonable yoghurt is a mass-market product in Bulgaria, consumed equally by both genders and all age groups.

Euromonitor International packaged food data shows that Bulgaria has the second highest per capita consumption of plain spoonable yoghurt in the world; at 14.6kg in 2009 (Turkey leads with 23.7kg). Plain spoonable yoghurt, considered a supremely healthy and natural food by Bulgarians, accounted for 80% of the country's yoghurt value sales in 2009.

Another sure sign that the health and wellness trend is starting to take root in Bulgaria can be seen in the oils and fats sector. Although this sector suffered a 7% value sales decline in recession-hit 2009, olive oil and functional spreadable oils and fats saw rather dynamic growth rates of 10% and 11%, respectively, making them by far the best performing categories.

Over the review period, consumers switched increasingly from sunflower oil to olive oil in an effort to emulate the healthy Mediterranean diet and lifestyle. In functional spreads, Unilever dominates with a 90% value share, claimed by its Flora, Becel and Kaliakra Fibre brands. The category was only introduced in 2006, and had grown to BGN5.1 million (US$3.4 million) by 2009.

Bulgaria has one of Europe's highest obesity rates. Euromonitor International countries and consumers data for 2009 shows that 19.4% of the country's population were classed as obese (with a BMI of or exceeding 30kg/m2) - worse than Germany (15.1%) and way ahead of its svelte northern neighbour Romania (9%).

However, sales of slimming products are relatively low, amounting to just BGN17 million (US$12 million) in 2009. Sales of meal replacement slimming products are negligible. According to trade sources within the pharmaceutical industry, meal replacement products distributed through conventional retail chains is a marginal category compared with slimming medication, weight loss supplements and herb-based slimming products. Slimming products are advertised on television and in the press, often endorsed by celebrities, and benefit from prominent merchandising at the point of sale.

In soft drinks, over the 2003-2008 review period, i.e. before the economic crisis hit, the impact of the health and wellness trend was largely apparent. Off-trade volume sales of carbonates, for instance, were not particularly dynamic, with a 6% compound annual growth rate (CAGR), and "unhealthy" concentrates declined by 5%, compared to 15% growth for bottled water, 13% for functional drinks, 10% for fruit/vegetable juice, 51% for ready-to-drink (RTD) tea and 19% for low-calorie carbonates.

In the crisis year of 2009, the overall soft drinks market posted a decline of 2% in off-trade volume terms, with fruit/vegetable juice, bottled water and functional drinks also falling into negative growth. However, low-calorie carbonates continued their explosive performance seemingly undisturbed, clocking up an 18% volume gain, and RTD teas, which are perceived as a healthy, trendy option, increased by 15%.

This shows that, despite the prevailing economic difficulties, Bulgarian consumers have not abandoned their search for healthier drinks, and it is reasonable to assume that once the recession fizzles out and financial constraints on grocery budgets lessen, Bulgarians will return to premium juices and functional drinks in their droves.