Soft Drinks - Cuba

The Soft Drinks market in Cuba has seen significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Cuban consumers have shown a growing preference for soft drinks as a refreshing beverage option. With the hot and tropical climate of the country, soft drinks offer a cool and thirst-quenching solution for locals and tourists alike. Additionally, the younger generation is increasingly adopting soft drinks as a trendy and fashionable choice, further driving the demand in the market.

Trends in the market: One of the key trends in the Soft Drinks market in Cuba is the increasing demand for healthier and natural options. Consumers are becoming more health-conscious and are seeking soft drinks that are low in sugar, free from artificial additives, and made from natural ingredients. This trend aligns with the global shift towards healthier lifestyles and the growing awareness of the negative health effects of excessive sugar consumption. Another trend in the market is the rising popularity of local and traditional soft drinks. Cuban consumers take pride in their cultural heritage and are increasingly embracing soft drinks that are made using traditional recipes and ingredients. This trend reflects a desire for authenticity and a connection to the country's rich history and traditions.

Local special circumstances: Cuba's unique political and economic circumstances have also influenced the development of the Soft Drinks market. The country's socialist system and state-controlled economy have resulted in limited access to international brands and products. As a result, local soft drink manufacturers have emerged to fill the gap in the market, offering Cuban consumers a range of homegrown options. This has created a sense of national pride and loyalty towards domestic brands, further driving the demand for locally produced soft drinks.

Underlying macroeconomic factors: The Soft Drinks market in Cuba is also influenced by underlying macroeconomic factors. The country has experienced economic reforms in recent years, leading to an increase in disposable income and a growing middle class. This has resulted in higher purchasing power and an increased demand for consumer goods, including soft drinks. Additionally, the growth of the tourism industry in Cuba has attracted a large number of international visitors who contribute to the demand for soft drinks. In conclusion, the Soft Drinks market in Cuba has witnessed growth due to changing customer preferences, emerging trends, and local special circumstances. The demand for healthier and natural options, as well as the popularity of local and traditional soft drinks, has driven the market forward. Cuba's unique political and economic circumstances, along with underlying macroeconomic factors, have also played a significant role in shaping the market. As the country continues to develop and open up to the global market, the Soft Drinks industry in Cuba is expected to further expand and diversify in the coming years.

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.