Carbonates in Kazakhstan

2021 DEVELOPMENTS

Foodservice registers a recovery

Carbonates registered a second year of double-digit retail value growth in 2021, but part of this growth was driven by prices rises and volume growth was much more moderate, though higher than 2020. Foodservice registered a recovery, with double-digit volume growth, though volume sales were lower than before the onset of COVID-19, as the pandemic is far from over and there was a cautiousness among consumers about mixing in public.

Coca-Cola continues to dominate

Coca-Cola Almaty Bottlers continued to have a dominant lead in carbonates in both volume and value sales in 2021, owing to the popularity of Coca-Cola and other brands such as Fanta and Sprite. RG Brands lies in second positions and offers the second most popular brand, Pepsi.

New flavours and active marketing main drivers of growth

Players constantly investing in marketing activity to keep their brands front and centre in consumers’ minds, with frequent promotion access TV, social media and on billboards, as well as sponsorship deals. Players also keep consumers interested by continually launching new flavour combinations such as Coca-Cola Lemon-Lime, Pepsi Lime and Fanta Apple.

PROSPECTS AND OPPORTUNITIES

Moderate volume growth over forecast period

Carbonates will register moderate volume growth over the forecast period. Once concerns around the pandemic subside, on-the-go consumption will increase and this will benefit non-cola carbonated particularly, as they are more often purchased in single servings.

Health and wellness trend dampens volume sales

COVID-19 has accelerated the trend towards healthier soft drinks, as the pandemic has put a spotlight on health and wellness and this will dampen volume sales over the forecast period. As such consumers will shift towards healthier soft drinks with lower sugar content and fewer artificial colours and flavourings.

Carbonates face competition from bottled water and juice

Over the forecast period, consumer awareness of the harmful effects of sugar, caffeine and other artificial ingredients will increase, leading to an ongoing shift towards more natural beverages, such as 100% juice and bottled water. However, a significant proportion of the population will remain loyal to carbonates, despite their unhealthy image.