Carbonates in Slovenia

2020 IMPACT

Closure of on-trade establishments negatively affects carbonates consumption

Carbonates records a decline in both off-trade current value and volume terms, as well as having been severely impacted, in on-trade volume terms, by the closure of foodservice establishments during the multiple lockdowns in 2020. Even though a share of on-trade consumption shifted to consumption at-home, this change in pattern was not enough to offset the steep decline in demand for carbonates through the on-trade channel.

Carbonates is under intense pressure from the rising health and wellness trend

Carbonates has been suffering from an unfavourable image, due to the sugar content in carbonated drinks. The rising interest in health and wellness sees consumers becoming more conscious of their food and drink options, particularly when it comes to ingredients, such as sugar, colourings and artificial additives.

Coca-Cola remains the clear leader in carbonates and cola-carbonates, benefiting from its established offerings

Carbonates remains generally consolidated in 2020, with three manufacturers commanding the majority of both value and volume sales. Coca-Cola HBC Slovenija retains its lead in the landscape, benefiting from an active marketing strategy, including print advertising, television adverts and outdoor billboards.

RECOVERY AND OPPORTUNITIES

HW trend will shape the landscape in carbonates

The health and wellness trend, which COVID-19 reinforced, will heavily influence carbonates in the forecast period. Products such as sugar free cola carbonates and non-cola carbonates that communicate health benefits are set to represent the largest growth areas.

E-commerce is set to play a greater role in driving carbonates sales

2020 saw an increase in carbonates sales through e-commerce. As e-commerce evolves in scale and scope in the forecast period, this trend is expected to continue across the forecast period.

Carbonates producers are expected to innovate with exotic flavours and appealing packaging design

In the forecast period, innovation in carbonates is likely to be both in terms of product characteristics and flavour, as well as in terms of packaging design. There is a growing inclination towards clean and minimal packaging design that clearly displays product characteristics and flavour.