Non-Alcoholic Drinks - Sri Lanka

The Non-Alcoholic Drinks market in Sri Lanka is experiencing significant growth due to changing customer preferences and local special circumstances.

Customer preferences: In Sri Lanka, there is a growing demand for healthier beverage options. Consumers are increasingly conscious about their health and are looking for non-alcoholic drinks that are low in sugar, natural, and free from artificial additives. This has led to a surge in the consumption of herbal teas, fruit juices, and flavored water. Additionally, there is a rising trend of functional beverages that offer specific health benefits, such as energy drinks and probiotic drinks.

Trends in the market: One of the key trends in the Non-Alcoholic Drinks market in Sri Lanka is the increasing popularity of local and traditional beverages. Sri Lanka is known for its rich tea culture, and traditional teas like Ceylon tea and herbal teas are highly sought after by both locals and tourists. Similarly, traditional fruit juices made from local fruits like king coconut and wood apple are gaining popularity for their unique flavors and health benefits. Another trend is the growing demand for ready-to-drink beverages, as consumers seek convenience in their busy lifestyles. This has led to the introduction of innovative packaging formats and flavors in the market.

Local special circumstances: Sri Lanka's tropical climate and abundance of natural resources make it an ideal location for the production of non-alcoholic beverages. The country is known for its high-quality tea plantations, which contribute to the production of premium teas that are in high demand globally. Additionally, Sri Lanka is rich in fruits and herbs, which are used to create unique and flavorful beverages. The local culture and traditions also play a significant role in shaping the non-alcoholic drinks market, as Sri Lankans have a strong affinity for their traditional beverages and flavors.

Underlying macroeconomic factors: The growing Non-Alcoholic Drinks market in Sri Lanka can also be attributed to several underlying macroeconomic factors. The country's improving economy and rising disposable income levels have increased consumer spending power, allowing individuals to afford premium and healthier beverage options. Furthermore, the tourism industry in Sri Lanka has been experiencing steady growth, attracting a large number of international visitors who are interested in exploring the local culture and trying traditional beverages. This has created a demand for non-alcoholic drinks that cater to the preferences of both locals and tourists. In conclusion, the Non-Alcoholic Drinks market in Sri Lanka is witnessing growth due to changing customer preferences towards healthier options, the popularity of local and traditional beverages, local special circumstances such as the country's tropical climate and rich resources, and underlying macroeconomic factors such as improving economy and growing tourism industry.

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.