As a general trend, the COVID-19 pandemic had a positive impact on sales of better for you beverages in 2020. In the largest category of BFY reduced sugar beverages, reduced sugar cola recorded higher retail and volume growth compared to regular cola.
BFY reduced caffeine beverages recorded double-digit retail value growth in 2020, well above the average for better for you beverages and with particularly strong growth for reduced caffeine fresh coffee and decaffeinated coffee. Due to the lockdown and restrictions on sales in on-trade venues, coffee brands sold much greater volumes through grocery retailers as the traditional “coffee run” suddenly became a coffee at home.
Recording double-digit value growth, Coca-Cola was the dominant player in better for you beverages in 2020. The player extended its already significant lead over second-ranked Schweppes Australia Pty Ltd in BFY reduced sugar beverages thanks to a combination of enhanced distribution and new product development.
Better for you beverages is expected to record negative average retail value growth at constant 2020 prices over the forecast period, with relatively few categories set for positive average growth. The category as a whole is expected to move towards a positive growth trend by the end of the forecast period after some of the steepest declines in 2021.
Reduced caffeine coffee, notably decaffeinated instant standard coffee, is expected to remain a relatively niche category and face challenging growth prospects over the forecast period. There is scope for further consumer education on the different qualities of decaffeinated coffee as many remain dissatisfied with the overall market.
Reduced sugar concentrates offers further growth potential over the forecast period as brands continue to innovate. After noticing that most BFY cordials were “no sugar added” varieties, with no sugar-free options, Bickford’s Australia launched a sugar-free cordial in mixed berry and lemon & lime flavours.
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Understand the latest market trends and future growth opportunities for the Better For You Beverages industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Better For You Beverages research and analysis database.
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