Bottled Water in Estonia

PROSPECTS

Bottled water succeeds as health and wellness trends prevail

Bottled water sales continued to increase during 2019, despite the return to normal summer weather in 2019 after rocketing demand during the very hot 2018 summer, which made producers work at full capacity. The category continues to develop positively, thus highlighting that it has not reached maturity in Estonia yet.

Growing interest in innovative options such as flavoured bottled water

Functional bottled water led growth in 2019, with the number of products within the category continuing to grow in Estonia. Products in this area fit well with the growing number of people regularly engaging in sports and the strengthening health and wellness trend in general.

Continued doubt over 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 benefits from strong consumer awareness

A Le Coq continues to lead sales within bottled water due to the popularity of its well-known Aura, Aura Fruit and Vitamineral brands, with the company offering a wide product assortment and being present across most categories. Regular updates in packaging design, strong distribution and promotional activities ensure that the company’s brands are highly recognisable throughout the country.

Growth opportunities attracting new players

Although bottled water is dynamic, thus providing 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 players gaining sales share from lower priced brands

In general, lower end brands are gradually being replaced by private label options, which are expected to dominate even more among low-mid price bands. On the other hand, higher end brands are expected to strengthen their position over the forecast period due to the premiumisation trend.

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