Soft Drinks - Bulgaria

The Soft Drinks market in Bulgaria has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Bulgarian consumers have been increasingly seeking healthier beverage options, leading to a rise in demand for low-sugar and natural soft drinks. This shift in consumer preferences can be attributed to a growing awareness of the negative health effects of excessive sugar consumption. As a result, soft drink companies have been introducing new products and reformulating existing ones to meet these changing demands. Additionally, there has been a rise in the popularity of functional beverages, such as energy drinks and sports drinks, which offer specific health benefits and cater to the active lifestyles of consumers.

Trends in the market: One of the key trends in the Bulgarian soft drinks market is the increasing popularity of bottled water. With concerns over the quality of tap water, many consumers are opting for bottled water as a safer and more convenient alternative. This trend has been further fueled by the rising health consciousness among consumers. As a result, bottled water has become one of the fastest-growing segments in the soft drinks market. Another trend in the market is the growing demand for premium and niche soft drinks. Bulgarian consumers are becoming more adventurous in their beverage choices and are willing to try new and unique flavors. This has created opportunities for small and independent soft drink companies to enter the market and cater to niche segments. Craft sodas, artisanal fruit juices, and herbal-infused drinks are gaining popularity among consumers who are looking for something different from the traditional soft drink offerings.

Local special circumstances: Bulgaria's geographic location and climate have a significant impact on the soft drinks market. The country experiences hot summers, which creates a high demand for refreshing and cooling beverages. Soft drink companies have capitalized on this by promoting their products as a way to beat the heat and stay hydrated. Additionally, Bulgaria has a strong tradition of fruit cultivation, which has led to the availability of a wide variety of locally sourced fruit juices and fruit-based soft drinks.

Underlying macroeconomic factors: The improving economic conditions in Bulgaria have also contributed to the growth of the soft drinks market. As disposable incomes have increased, consumers have more purchasing power and are willing to spend on premium and healthier soft drink options. Furthermore, the country's membership in the European Union has facilitated trade and investment, allowing international soft drink companies to enter the market and offer a wider range of products. In conclusion, the Soft Drinks market in Bulgaria is experiencing growth due to changing customer preferences towards healthier and more natural options, the popularity of bottled water, the demand for premium and niche soft drinks, the country's geographic location and climate, as well as the improving economic conditions and trade opportunities.

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.