Soft Drinks - Baltics

The Soft Drinks market in Baltics has been experiencing significant growth in recent years. Customer preferences have shifted towards healthier and more natural beverage options, leading to an increased demand for products such as bottled water, functional drinks, and organic juices. This trend is in line with global market developments, as consumers worldwide are becoming more health-conscious and seeking out beverages that offer nutritional benefits.

Customer preferences: In the Baltics, consumers are increasingly choosing beverages that are low in sugar, free from artificial additives, and made from natural ingredients. This shift in preferences can be attributed to a growing awareness of the negative health effects associated with excessive sugar consumption and artificial ingredients. As a result, soft drink companies in the region have been introducing new product lines that cater to these changing preferences, such as sugar-free sodas, flavored water, and natural fruit juices.

Trends in the market: One of the key trends in the Soft Drinks market in the Baltics is the rising popularity of functional drinks. These beverages are formulated to provide specific health benefits, such as enhanced energy, improved digestion, or immune support. Functional drinks are gaining traction among health-conscious consumers who are looking for convenient ways to incorporate additional nutrients into their daily routines. As a result, soft drink companies in the Baltics are launching new functional drink products and expanding their existing offerings to meet this growing demand. Another trend in the market is the increasing popularity of premium and organic soft drinks. Consumers are willing to pay a premium for beverages that are perceived as healthier and of higher quality. This has led to the introduction of organic soft drinks made from natural ingredients and without artificial additives. Companies are also focusing on innovative packaging designs and marketing strategies to differentiate their premium and organic products from traditional soft drinks.

Local special circumstances: The Baltics have a strong tradition of natural and organic farming, which has contributed to the availability of high-quality ingredients for soft drink production. This has allowed local soft drink companies to capitalize on the growing demand for natural and organic beverages. Additionally, the region's relatively small population and close proximity to major European markets make it an attractive market for soft drink manufacturers looking to expand their presence in the Baltics.

Underlying macroeconomic factors: The growing Soft Drinks market in the Baltics can be attributed to several underlying macroeconomic factors. Firstly, the region has experienced steady economic growth in recent years, leading to increased disposable income and consumer spending. This has allowed consumers to prioritize their health and wellness and invest in healthier beverage options. Secondly, the Baltics have a well-developed retail infrastructure, with a wide range of distribution channels available for soft drink companies. This includes supermarkets, convenience stores, and online platforms, which make it convenient for consumers to access a variety of soft drink products. In conclusion, the Soft Drinks market in the Baltics is evolving to meet changing customer preferences for healthier and more natural beverage options. The growing demand for functional drinks and premium/organic soft drinks is driving the market forward. Local special circumstances, such as the region's tradition of natural and organic farming, and underlying macroeconomic factors, including economic growth and a well-developed retail infrastructure, are contributing to the market's development.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

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 (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level 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 Non-Alcoholic Drinks 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.