Carbonates in Georgia

2021 DEVELOPMENTS

Continued lack of tourists continues to hamper sales results of non-cola carbonates

Non-cola carbonates will show the worst performance within carbonates during the pandemic in terms of total volume growth. In 2020, the category saw a double-digit decline (in contrast with the single-digit decline for cola carbonates), and in 2021 will record much slower growth than cola carbonates.

Cola carbonates fare better with demand in the off-trade relatively stable

Cola carbonates will remain the leading category in carbonate in 2021 as it suffered fractionally fewer current value losses than other types of carbonates during the pandemic. In some cases, its distributors were able to redirect products to the off-trade channel, where demand remained constant.

Orange carbonates and tonic water/other bitters remain niche choice in on-trade

Although orange carbonates is reasonably popular in the off-trade channel, demand is slipping and the category will record negative off-trade volume growth in 2021. The pandemic has triggered a movement towards healthier consumption, with consumers being more aware of what nutrients they put into their bodies.

PROSPECTS AND OPPORTUNITIES

Return to office working set to boost on-trade volumes of cola carbonates

Cola carbonates is expected to continue its 2021 growth in the on-trade channel as the foodservice industry recovers from the effects of the COVID-19 pandemic. Some establishments will have been forced to close for good due to lost revenues, which will hamper the overall recover.

Low-calorie cola carbonates to continue to take share from regular cola carbonates

It is expected that low-calorie cola carbonates will continue to grow at a steady rate throughout the forecast period as a new generation of consumers starts to follow health trends and limit calorie consumption. Such products are typically extensions of existing brands and product lines.

Demand for carbonates via e-commerce unlikely to see significant growth

There is very little demand for carbonates through e-commerce channels in 2021 and this is not expected to change during the forecast period. All types of carbonates, particularly cola carbonates, are readily available in supermarkets and smaller stores, which is where consumers are used to purchasing them.