Government legislation was a significant driver in better for you beverages in 2019. Since the sugar tax was introduced in 2017 affecting beverages categories that contain higher levels of sugar, unit prices rose leading to a subsequent decline in volume sales as consumers migrated away from the affected categories.
A recent trend towards reduced caffeine has also been supporting better for your beverages. Whilst this is also evidenced from the significant value growth of reduced caffeine sugar free cola carbonates it is also pertinent to coffee per se.
Sales of FF chocolate-based flavoured powder drinks have been affected by a decline in milk consumption as well as the negative image associated with high levels of sugar that are unhealthy for children. In response, leading player Nestlé began investing in introducing reduced sugar versions of Nesquik with 30% less sugar, while an All Natural version launched in 2019 features more cocoa, less sugar and a simplified number of ingredients.
In addition to the sugar tax legislation and increased consumer call for reduced caffeine products, value growth in better for you beverages will continue to be supported by health and wellness trends seen among Portuguese consumers. It is expected that, with growing consumer awareness of and selectiveness about the ingredients in their food and drink, this trend will continue to gain momentum over the forecast period.
Strong competition for BFY beverages is expected from other health and wellness products, mostly those from the NH, organic and fortified/functional categories. Even though continuous and solid growth is expected for BFY beverages, uncertainty surrounding Portugal’s economic scenario since the pandemic could have a strong impact on its consumption.
The onset of the global pandemic proved a boon to the e-commerce channel in Portugal, with this trend expected to continue. Growth in e-commerce expenditure in 2020 will lead to an increase in BFY sales via this channel in the coming years, especially with the expected slow recovery of on-trade channels.
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Understand the latest market trends and future growth opportunities for the Better For You Beverages industry in Portugal 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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