Soft Drinks - North Macedonia

The Soft Drinks market in North Macedonia has been experiencing significant growth in recent years.

Customer preferences: In North Macedonia, consumers have shown a strong preference for soft drinks, particularly carbonated beverages. This can be attributed to the refreshing and thirst-quenching qualities of these drinks, which are especially popular during the hot summer months. Additionally, the younger population in North Macedonia has been driving the demand for energy drinks, which provide a boost of energy and are often consumed as a pick-me-up during long study or work hours.

Trends in the market: One of the key trends in the soft drinks market in North Macedonia is the increasing demand for healthier beverage options. As consumers become more health-conscious, there has been a shift towards low-sugar and sugar-free soft drinks, as well as natural and organic alternatives. This trend is in line with the global movement towards healthier lifestyles and the growing awareness of the negative health effects of excessive sugar consumption. Another trend in the market is the rise of functional beverages. These are soft drinks that offer additional health benefits, such as improved digestion, enhanced immunity, or increased energy. Functional beverages are gaining popularity among consumers who are looking for more than just hydration from their drinks, and are willing to pay a premium for these added benefits.

Local special circumstances: North Macedonia has a relatively small population compared to other countries in the region, which limits the size of the soft drinks market. However, the country's strategic location and proximity to major transportation routes make it an attractive market for international soft drinks companies looking to expand their presence in the Balkans. In addition, the relatively low cost of production and labor in North Macedonia makes it an appealing destination for soft drinks manufacturers.

Underlying macroeconomic factors: The economic stability and steady GDP growth in North Macedonia have contributed to the growth of the soft drinks market. As disposable incomes rise, consumers have more purchasing power and are able to spend more on non-essential items such as soft drinks. Furthermore, the country's integration into the European Union and the opening of its borders to trade have facilitated the entry of international soft drinks brands, increasing competition and driving market growth. In conclusion, the Soft Drinks market in North Macedonia is developing in response to changing customer preferences, including a shift towards healthier options and the demand for functional beverages. The country's strategic location, low production costs, and favorable macroeconomic factors have also contributed to the growth of the market. As the market continues to evolve, soft drinks companies will need to adapt to these trends and cater to the changing preferences of consumers in order to remain competitive.

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.