Carbonates in Spain

PROSPECTS

Shift to perceived healthier soft drinks hinders demand for carbonates

As these soft drinks are perceived as unhealthy, retail volume sales are expected to continue on a downward trajectory over the forecast period. Additionally, unfavourable weather conditions and much slower growth in inbound tourist trips and expenditure further hit the category towards the end of the review period.

Low calorie and reduced sugar versions benefit from health focus

Off-trade sales of carbonates continue to struggle in 2019, largely due to the health and wellness trend in Spain. This is seeing a shift towards soft drinks perceived as healthier and more natural, including bottled water, sports drinks and RTD tea.

Environmental concerns drive developments in sustainable packaging

The growing concern for the environment, especially plastic’s negative impact, is expected to become a major factor in the forecast period, especially among the younger population. A new EU directive has the target of incorporating 25% of recycled plastic from 2025, increasing to 30% from 2030, in all PET bottles for beverages.

COMPETITIVE LANDSCAPE

The leading player responds to consumer needs to stay ahead

The Coca-Cola Co’s Cía Servicios de Bebidas Refrescantes is the clear leading NBO in carbonates in Spain. The success of the company’s brands is derived from high consumer recognition, wide distribution, marketing and a quality perception, but also the ability to respond quickly to changing consumer needs.

Private label looks to new trends to retain a strong presence

Sales of carbonates continue to be dominated by multinational manufacturers in 2019, led by Cía Servicios de Bebidas Refrescantes, Cía de Bebidas PepsiCo and Schweppes. Cía de Bebidas PepsiCo, Cía Servicios de Bebidas Refrescantes’s main rival in cola carbonates, is deriving benefit from the performance of Pepsi Max, despite weaker availability than Coca-Cola in the off- and on-trade channels.

Tónica Schweppes benefits as on-trade demand for mixers influences off-trade choices

In 2019, off-trade volume and value sales of tonic water/other bitters are rising at a slightly faster rate than in 2018, although growth rates remain slower than in most earlier years of the review period. Growth is benefiting the performance of the clear leading brand Tónica Schweppes.

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