Bottled Water in Serbia

2020 IMPACT

Stockpiling behaviour boosts sales of bottled water during 2020

Bottled water was the only area in soft drinks in Serbia that was positively impacted by stockpiling behaviour during COVID-19 in 2020. At the beginning of the pandemic, some consumers feared that there might even be water shortages.

On-trade sales drop notably, recording a double-digit decline 

COVID-19 will result in a notable decline in on-trade volume growth, moving from 2% in 2019, to a decline of 26% in 2020. This is due to foodservice closures across the country, partnered with consumers ongoing fear to visit public locations, even once able to.

Knjaz Miloš launches a product infused with vitamins, responding to consumer demands during COVID-19 

Knjaz Miloš is set to remain the leading player in bottled water in 2020 having been purchased by PepsiCo and Karlovarske Mineralni Vody in 2019. Karlovarske Mineralni Vody is the exclusive producer and distributor of PepsiCo beverages in the Czech Republic, Hungary, Slovakia and Bulgaria.

RECOVERY AND OPPORTUNITIES

On-trade sales recover from 2021, as consumers visit foodservice establishments once more

On-trade volume sales were severely hit by the pandemic in 2020, due to the closures of foodservice outlets and consumers ongoing cautious behaviour when leaving the home. However, as consumers start to feel comfortable returning to on-trade establishments, on-trade volume sales are set to post positive results from 2021, recording double-digit growth for both years, as the landscape recovers.

Off-trade value sales benefit from rising unit prices

The average unit price of bottled water is set to increase in 2021, and the same trend will continue throughout the forecast period as well. This will mostly be influenced by the growing share of on-trade sales, that dropped notably in 2020.

The health and wellness trend shapes product launches as consumers demand functional options

Across the forecast period, new product launches are set to be shaped by the health and wellness trend, which saw a boost in interest during 2020, due to the outbreak of COVID-19. As such, players will focus on lunching items marketed as healthy, with launches including items with added mineral and vitamins, responding to consumers increased interest in health and boosting their immunity.