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.
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.
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.
Demand for bottled water is set to rebound fairly quickly in 2021 after the declines noted the previous year when many consumers reduced their expenses by drinking tap water more often whilst in the home. However, with restrictions likely to relax over the early part of the forecast period, both on-trade and off-trade volume sales are predicted to grow as consumers spend longer periods of time outside of the home, before eventually returning to greater levels of normalisation in terms of purchasing behaviour towards the latter part of the forecast period.
After a decline in 2020, the largest off-trade volume category of still natural mineral bottled water is set to strongly recover. Since the beginning of 2020, the procedure for testing the quality of natural mineral water has changed, resulting in less rigorous testing than previously required.
Popular discounter Lidl is addressing demands for greater sustainability and environmental issues amongst Lithuanians by reducing the amount of plastic it uses through the production of its Saguaro private label bottled water. In 2018, the retailer had already reduced the plastic content of its bottles by approximately 10% but this was increased to 18% in 2020 for its 1.
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This report originates from Passport, our Bottled Water research and analysis database.
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