Bottled Water in Estonia

2020 IMPACT

On-trade and sports facility closures lead to an overall decline in bottled water in 2020

On-trade sales of bottled water declined drastically in 2020 as foodservice outlets closed and Estonia grappled with the COVID-19 pandemic. Moreover, bottled water is often consumed during or after sporting activities in Estonia and widespread closure of gyms and sporting arenas and the cancellation of organised sports reduced retail sales in bottled water too, with consumers disinclined to buy bottled water for home use as tap water quality is generally good.

Functional bottled water performs well as it taps into the growing health and wellness trend

Functional bottled water recorded strong growth in off-trade current value and volume terms in 2020, albeit from a rather low base. This indicates consumer interest in water with added value and health benefits, which aligns with the growing health and wellness trend in the country.

Carbonated bottled water players gain ground in 2020, despite overall decline of category

Although both subcategories recorded decline, carbonated bottled water fractionally outperformed still bottled water in 2020, thanks to two imported carbonated water brands—IDS Borjomi Europe UAB’s Borjomi brand and Birštono Mineraliniai Vandenys & Ko UAB’s Vytautas brand. These products have high mineral and salt content and remain popular among older demographics and sportspeople, and IDS Borjomi Europe UAB overtook both former leader A Le Coq and Värska Vesi AS to take the top spot in bottled water in 2020, while Birštono Mineraliniai Vandenys & Ko UAB more than doubled its current value share.

RECOVERY AND OPPORTUNITIES

Innovation will be seen in packaging as well as products as new players enter the scene

With the prevailing health and wellness trend and the increasing popularity of flavoured and functional bottled water, new players are expected to enter the market over the forecast period. Developments are likely to relate not only to water itself, but also to packaging, as consumers become more concerned about excess plastic waste.

On-trade recovery will give bottled water a boost in 2021, but retail growth will remain modest

Recovery will be seen from 2021 onwards, particularly as foodservice outlets reopen and on-trade sales bounce back. The resumption of sporting events and activities will also help boost the performance of bottled water in the years ahead.

Innovation in functional bottled water will drive sales across the forecast period

Functional bottled water will drive growth in bottled water across the forecast period as innovation in this product area develops. Functional bottled water aligns well with the growing number of Estonians regularly engaging in sports and the strengthening health and wellness trend in the country, which was accelerated by the COVID-19 pandemic.