Bottled Water in Estonia

PROSPECTS

Bottled water succeeds as health and wellness trends prevail

Bottled water saw dynamic off-trade current value and volume growth rates in Estonia in 2018, as the category is succeeding at the expense of other soft drinks categories, which are perceived as less healthy by local consumers. Drinking water is something that is being promoted in society, whilst drinks with high sugar content are being highlighted as extremely unhealthy.

New product developments

In addition to consumers purchasing more bottled water, they have also become more aware of innovative products such as functional bottled water, vitamin water or flavoured bottled water with exotic flavours. This has created demand for innovations in the bottled water category, and producers are making efforts to introduce more such products to the market.

The question of sugar taxation

As the situation regarding sugar taxation in Estonia remains unclear, there has been no impact on any soft drinks category. Nevertheless, if such a tax is formalised and implemented, it remains to be seen whether flavoured bottled water containing sugar will be negatively affected.

COMPETITIVE LANDSCAPE

Local company A Le Coq leads bottled water

The local company A Le Coq led bottled water in off-trade value terms in 2018, offering the well-known brands Aura, Aura Fruit and Vitamineral. The company is one of the biggest advertisers in Estonia, and is also well-known in alcoholic drinks, which boosts overall awareness of the company and its products.

Shares within bottled water remain stable

Although the bottled water category is dynamic, and this provides the opportunity for new producers to enter the market, shares within bottled water have remained rather stable. Nevertheless, with the prevailing health and wellness trend and the increasing popularity of flavoured and functional bottled water, new producers are expected to enter the market over the forecast period.

Private label performs well in certain categories

Private label is performing strongly in categories such as still bottled water, because many consumers prefer to pay a lower price when purchasing this simple product from stores. The majority of Estonians are comfortable consuming tap water, and for this reason they prefer not to pay high prices for still bottled water.

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