Bottled Water in Lithuania

2020 IMPACT

Home seclusion and price sensitivity reduces demand for bottled water in 2020

Prior to the emergence of the pandemic, the largest volume category of bottled water within Lithuanian soft drinks had been experiencing solid demand for several years, linked to the health and wellness trend, as consumers increasingly turned away from certain carbonates and juice, in favour of healthier alternatives. Still bottled water, dominated by the natural mineral format, had continued to record double-digit off-trade volume growth, where it is traditional for many consumers to stock this in their homes or opt for smaller bottles for on-the-go consumption.

Imported bottled water runs risk of rising prices if bottling plants are forced to close again

According to leading player Birštono Mineraliniai Vandenys & Ko UAB, the local cost of raw materials to produce bottled water declined in 2020, although the average unit price of the category remained stable in 2020. Nevertheless, if the situation on a global level worsens, prices have the potential to rise for bottled water brands manufactured outside of Lithuania; when the pandemic initially emerged in Europe, some production facilities were forced to close, which can reduce competition and increase prices if demand once again rises, although it is also likely to be beneficial for locally-produced bottled water.

Leading players gain marginal share but private label is strongest performer

Bottled water continued to be led by Birštono Mineraliniai Vandenys & Ko UAB in 2020, which offers a wide brand portfolio including Vytautas, Akvile and Birute, followed by Neptuno Vandenys UAB, which locally distributes leading brand Neptunas and is globally owned by The Coca-Cola Co. The latter therefore benefits from the global giant which has invested in its production facilities over the review period in addition to active marketing campaigns and well-established distribution.

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