Bottled Water in Lithuania

PROSPECTS

Health trend continues to drive demand for bottled water as consumers increasingly move away from certain carbonates and juice drinks

Bottled water continued to benefit from the health and wellness trend in Lithuania as consumers increasingly turned away from certain carbonates and types of juice, in favour of healthier alternatives. Still bottled water strengthened its popularity over the carbonated format (carbonated natural mineral bottled water) that it gained towards the end of the review period, with still spring bottled water a strongly growing niche.

Despite slower growth due to cooler summer, bottled water set to record stronger performance over forecast period

Despite an early start to the summer period in 2019, lower temperatures in July resulted in a more moderate sales performance in off-trade and on-trade volume terms compared to 2018. Convenience stores and forecourt retailers tend to benefit from hotter weeks as Lithuanians often purchase smaller formats for on-the-go consumption and to stay hydrated, leading to stronger share gain for these channels at the end of the review period.

Producers attempt to attract consumers through novel or redesigned packaging

While some areas of bottled water such as the functional format offer strong potential for expansion, the main formats of carbonated and still bottled water are showing some signs of maturity with players looking to attract consumers by rebranding or redesigning their packaging as there is limited space for innovation. Therefore, companies focused more on packaging in 2019, with Druskininku Rasa UAB renewing the bottle format of its brand Rasa, Borjomi from IDS Borjomi Europe UAB offering its product in a metal can which offers greater differentiation compared to plastic or glass bottles, Vytautas from Birštono Mineraliniai Vandenys & Ko UAB offering segmented labelling to attract consumers who may be looking for refreshment after performing certain activities, while the same player also offered its brand Akvile in glass bottles, which consumers tend to perceive to be of a more premium quality.

COMPETITIVE LANDSCAPE

Further share gains for the three leading players

Bottled water was led by Birštono Mineraliniai Vandenys & Ko UAB, which offers a wide brand portfolio including Vytautas, Akvile and Birute, and Neptuno Vandenys UAB, which locally owns leading brand Neptunas. Both players strengthened their positions with strong off-trade volume and value share gain in 2019.

Borjomi continues to record strong growth following launch of novel packaging concept

Georgian brand Borjomi continued to record double-digit value growth in 2019, supported by the launch of a new packaging format for Lithuania, indeed within any Baltic country at the end of 2018, with the introduction of volcanic mineral water offered in 0.33ml aluminium cans.

Segmentation offered by Kubus with first child-targeted bottled water

Juice brand Kubus has expanded into bottled water, by launching the first product to target children in Lithuania. Increasingly hot summers and the rising health trend have led to more Lithuanians reaching for water and moving away from juice drinks, and therefore the brand has adapted to these changing consumption habits.

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