Bottled Water in Bulgaria

2020 IMPACT

Amidst pandemic, boost in demand for off-trade bottled water in 2020 but severe decline for on-trade bottled water

Buoyed by its reputation as a healthy drink—particularly when compared to carbonates—bottled water is posting strong volume sales growth in the off-trade channel in the throes of the pandemic in 2020. In contrast, on-trade volume and value sales of bottled water are experiencing severe declines in 2020 as horeca outlets, such as restaurants, bars and spas, have closed and which now struggle to reopen as consumers spend more of their time at home in order to avoid public crowds and gathering.

Pandemic prompting more households to buy bottled water in bulk in 2020

Consumers are spending more time at home in 2020, and that time at home is influencing their bottled water packaging preferences. Indeed, home-bound consumers are increasingly buying their water in multipacks and larger pack sizes while buying fewer small and mini-sized bottles, i.

Devin AD boosts its value share in 2020 and maintains its strong leadership in bottled water

Devin AD is set to post an increase in its off-trade value share in bottled water in 2020 and keep the leading position it has held in the category throughout the review period. The company’s Devin brand is widely available and trusted, and the company is also known for its innovative packaging and marketing.

RECOVERY AND OPPORTUNITIES

On-trade volume and value sales expected to rebound sharply in 2021 as consumers emerge from home and return to on-trade venues

After severe pandemic-related declines in 2020, on-trade volume and value sales of bottled water at constant 2020 prices are projected to bounce back in 2021 with strong, double-digit growth rates before settling in and posting more modest rates over the remainder of the forecast period. For the most part, the strong showing in 2021 will likely be a reflection of weary consumers eagerly embracing their return to on-trade venues after months of adherence to strict COVID-19 restrictions.

Opportunities for economy brands as price-conscious consumers demand value for money over the forecast period

Over the forecast period, heightened price-sensitivity, a result of consumers’ concerns about pandemic-related economic recession and rising unemployment, is expected to exert pressure on shoppers to find the best value for money. The emphasis on price is likely to dampen demand for premium bottled water products and make lower-priced products more attractive.

Return of popular spa tourism to help boost demand for on-trade bottled water

Pandemic-related travel and tourism bans and the closure of horeca outlets, including the closure of popular health and beauty spas, were amongst the primary factors driving the significant declines of on-trade volume and value sales of bottled water in 2020. Prior to the pandemic, Due to the large number of spas in the country, Bulgaria enjoyed a very positive reputation as a wellness destination during the review period, and this helped foster demand for locally-produced bottled water, such as water bottled those close to the Rila, Pirin and Rhodope mountains.