Carbonates in Sweden

2021 DEVELOPMENTS

Sales pick up as consumer confidence improves

Carbonates saw a return to growth in total volume terms in 2021 fuelled by the strong recovery of the on-trade channel and ongoing growth in e-commerce. Although the restrictions in Sweden were not as strict as in other Western countries, many consumers still chose to avoid visiting on-trade establishments in 2020.

Consumers favour reduced-sugar options, while Fanta loses its fizz after reformulation

There has been a clear trend towards low calorie and sugar-free options in carbonates since the outbreak of COVID-19, with consumers moving from regular cola carbonates to low calorie cola carbonates. Reduced sugar non-cola carbonates has also been taking share in non-cola carbonates.

Coca-Cola investing in a more sustainable future

Sustainability remains one of the leading requirements for companies to succeed in the modern Swedish marketplace, with leading player Coca-Cola investing in more sustainable production practices. According to Coca-Cola European Partners plc (CCEP), in 2020 Sweden became the first country to benefit from the Coca-Cola System’s use of 100% rPET.

PROSPECTS AND OPPORTUNITIES

Sustainability and CSR activities set to be key in building a positive brand image

Sustainability and Corporate Social Responsibility (CSR) activities will likely form an important part of the strategies of the leading players in carbonates over the forecast period. Companies increasingly recognise the importance of a positive brand image in the digital age, with social media having the power to rapidly elevate or denigrate a brand or business’ reputation.

Pressure mounts for sugar tax

There are looming discussions by the Swedish government related to the introduction of a sugar tax, which could impact growth and the price of soft drinks in the forecast period. The Swedish Cancer Society has been calling for the government to introduce a sugar tax to help push players to reduce the sugar content of their products.

Flavour novelties could help spark renewed interest in carbonates

In order to help reinvigorate the demand for carbonates new product development is expected to focus on finding new and interesting flavour extensions and product combinations, while keeping in mind the importance of the developing health trend (ie reduced sugar content). Younger consumers in particular are often drawn to novelties and this could present the opportunity for limited edition flavours or collaborations with other brands as a way to reignite interest.