Soft Drinks - Laos

The Soft Drinks market in Laos has been experiencing significant growth in recent years. Customer preferences for non-alcoholic beverages have been shifting towards healthier options, driving the demand for soft drinks. Additionally, local special circumstances and underlying macroeconomic factors have also played a role in the development of the market.

Customer preferences: Laos, like many other countries in the region, has seen a rise in health-conscious consumers. As a result, there has been a growing demand for soft drinks that offer healthier alternatives to traditional carbonated beverages. Consumers are increasingly looking for options that are low in sugar, free from artificial additives, and made from natural ingredients. This shift in customer preferences has led to the introduction of a wide range of healthier soft drink options in the market, including natural fruit juices, herbal teas, and flavored water.

Trends in the market: One of the key trends in the Soft Drinks market in Laos is the increasing popularity of locally produced beverages. Consumers are showing a preference for products that are made using traditional recipes and local ingredients. This trend is driven by a desire to support local businesses and promote traditional flavors. As a result, there has been a surge in the production and consumption of locally made soft drinks, including traditional herbal drinks and fruit-based beverages. Another trend in the market is the growing demand for convenience. Busy lifestyles and the increasing urbanization in Laos have led to a rise in the consumption of ready-to-drink soft drinks. Consumers are looking for products that are easy to carry and consume on the go. This has led to the introduction of smaller packaging sizes and the expansion of distribution channels to include convenience stores and online platforms.

Local special circumstances: Laos is known for its rich biodiversity and abundance of natural resources. This has created a unique opportunity for the Soft Drinks market to capitalize on the availability of locally sourced ingredients. The country's tropical climate allows for the cultivation of a wide variety of fruits, which are often used in the production of soft drinks. Additionally, Laos has a long tradition of using herbs and plants for medicinal purposes, leading to the development of herbal soft drinks that cater to the local market.

Underlying macroeconomic factors: The Soft Drinks market in Laos is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth, leading to an increase in disposable income levels. As a result, consumers have more purchasing power and are able to afford a wider range of soft drinks. Additionally, the growing tourism industry in Laos has also contributed to the growth of the market. Tourists visiting the country often seek out local beverages as part of their cultural experience, further driving the demand for soft drinks. In conclusion, the Soft Drinks market in Laos is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The shift towards healthier options, the popularity of locally produced beverages, and the demand for convenience are some of the key trends driving the market. With its rich natural resources and growing economy, Laos offers a unique opportunity for the Soft Drinks industry to thrive.

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.