Soft Drinks - Italy

The Soft Drinks market in Italy has experienced significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: Italian consumers have shown a growing preference for healthier and more natural beverages, leading to an increase in demand for low-sugar and organic soft drinks. This shift in consumer preferences can be attributed to a greater awareness of the health risks associated with high sugar consumption and a desire for more natural and sustainable products. As a result, companies in the Soft Drinks market have responded by introducing a wide range of healthier options, including fruit-infused waters, herbal teas, and natural energy drinks.

Trends in the market: One of the key trends in the Soft Drinks market in Italy is the rising popularity of functional beverages. Functional beverages are drinks that offer additional health benefits beyond basic hydration. These can include drinks fortified with vitamins, minerals, or other bioactive compounds that promote health and well-being. This trend is driven by a growing interest in preventive healthcare and a desire for products that can support a healthy lifestyle. As a result, we have seen an increase in the availability and variety of functional beverages in the Italian market, including probiotic drinks, collagen-infused waters, and antioxidant-rich juices.

Local special circumstances: Italy is known for its rich culinary tradition and appreciation for high-quality food and beverages. This cultural context has influenced the Soft Drinks market, with Italian consumers seeking out products that are authentic, locally sourced, and made with traditional production methods. This has created opportunities for small, artisanal soft drink producers who can offer unique and niche products that cater to this demand. Additionally, Italy's strong café culture has also contributed to the growth of the Soft Drinks market, with an increasing number of consumers opting for soft drinks as an alternative to coffee or alcoholic beverages.

Underlying macroeconomic factors: Italy's growing economy and rising disposable incomes have also played a role in the development of the Soft Drinks market. As consumers have more purchasing power, they are willing to spend more on premium and healthier beverages. Furthermore, the tourism industry in Italy has been a significant driver of growth in the Soft Drinks market, as visitors from around the world seek out authentic Italian food and drink experiences. This has created opportunities for both local and international soft drink brands to expand their presence in the Italian market and cater to the diverse tastes and preferences of tourists.

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.