Soft Drinks - D-A-CH

The Soft Drinks market in D-A-CH, which includes Germany, Austria, and Switzerland, is experiencing steady growth driven by changing consumer preferences and local special circumstances.

Customer preferences: Consumers in D-A-CH have shown a growing interest in healthier beverage options, leading to an increased demand for low-sugar and natural drinks. This shift in preferences can be attributed to a rising awareness of the negative health effects of sugary beverages and a desire for more transparent and sustainable products. As a result, companies in the Soft Drinks market are focusing on developing and promoting healthier alternatives, such as natural fruit juices, herbal infusions, and functional beverages.

Trends in the market: Germany, the largest market in the D-A-CH region, has seen a surge in the popularity of craft and artisanal soft drinks. This trend can be attributed to the growing interest in local and regional products, as well as the desire for unique and authentic flavors. Craft soft drinks often feature high-quality ingredients and innovative flavor combinations, appealing to consumers looking for a premium and differentiated experience. Austria, on the other hand, has witnessed a rise in the consumption of energy drinks. This can be attributed to the country's active and outdoor lifestyle, with consumers seeking a boost of energy during sports and recreational activities. Energy drinks have become a popular choice among young adults and athletes, driving the growth of this segment in the Austrian market. In Switzerland, the demand for functional beverages has been on the rise. Functional beverages are drinks that offer additional health benefits beyond basic hydration. This trend can be attributed to the country's health-conscious population and the growing interest in products that promote overall well-being. Functional beverages, such as vitamin-infused waters and drinks with added probiotics, have gained popularity among Swiss consumers seeking convenient and effective ways to support their health.

Local special circumstances: The Soft Drinks market in D-A-CH is also influenced by local regulations and cultural factors. For example, Germany has implemented a sugar tax on beverages with high sugar content, encouraging companies to reformulate their products and reduce sugar levels. This has led to the introduction of a wider range of low-sugar and sugar-free options in the market. In Austria, the consumption of soft drinks is deeply ingrained in the country's cultural traditions. Soft drinks, especially carbonated beverages, are often enjoyed during social gatherings and celebrations. This cultural preference for carbonated drinks has contributed to the strong demand for carbonated soft drinks in the Austrian market. Switzerland, known for its high standard of living and disposable income, has a market that is willing to pay a premium for quality products. This has created opportunities for premium and niche soft drink brands to thrive in the Swiss market, catering to consumers who value exclusivity and unique flavors.

Underlying macroeconomic factors: The Soft Drinks market in D-A-CH is supported by a stable and growing economy in the region. Germany, Austria, and Switzerland have strong purchasing power and a high standard of living, allowing consumers to spend on discretionary items like soft drinks. Additionally, the increasing urbanization and busy lifestyles in these countries have led to a growing demand for convenient and on-the-go beverage options, further driving the growth of the Soft Drinks market. In conclusion, the Soft Drinks market in D-A-CH is evolving to meet changing consumer preferences for healthier and more innovative beverage options. Craft soft drinks, energy drinks, and functional beverages have emerged as popular trends in Germany, Austria, and Switzerland, respectively. Local regulations, cultural preferences, and macroeconomic factors also play a significant role in shaping the market dynamics in each country.

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.