Carbonates in the Netherlands

2021 DEVELOPMENTS

Ongoing growth for carbonates in 2021 though the on-trade remains hampered by ongoing COVID-19 restrictions on operations

After the relatively strong growth in the previous year due to the COVID-19 crisis, the carbonates category once again managed to show value growth in the off-trade in 2021. However, while the on-trade achieved a slight recovery, the ongoing presence of the virus meant COVID-19 restrictions were still imposed on the on-trade and continued to have a significant impact in 2021.

Ginger ale and tonic waters/other bitters benefit from consumer demand for new and interesting flavours and a more mature taste profile

Ginger ale showed extreme double-digit growth compared to other carbonates categories. Ginger ale is highly popular as consumers are looking for new flavours and are interested in a more mature taste profile and new low sugar variants, all of which further support its growth.

Relaunch of the Coca-Cola range and reformulation of Coca-Cola Zero Sugar are the highlights of new product development in 2021

The big news in terms of product development was the relaunch of the Coca-Cola range and particularly the reformulation of Coca-Cola Zero Sugar. The company not only changed the design of the packaging, but it also improved the taste of Coca-Cola Zero Sugar.

PROSPECTS AND OPPORTUNITIES

Recovery for the on-trade and on-the-go pack sizes as the pandemic recedes and vaccines are rolled out

It is expected that carbonates in the off-trade will register a decline in volume over the forecast period. In contrast, in the on-trade, a further recovery in sales over 2022 and 2023 is the most likely scenario.

Consumption of carbonates comes under pressure as consumers adopt more responsible alternative soft drinks

In the long term, the consumption of carbonates is expected to remain under pressure. While families with children are likely to remain the main target group for carbonates, the consumption of carbonated drinks among this consumer base will be increasingly seen as a habit that is bad for the health.

Switch to e-commerce continues over the forecast period, especially for larger pack sizes

There will be a further shift in distribution channels over the forecast period. Sales of carbonates via e-commerce increased sharply since the COVID-19 crisis and are expected to continue to rise, although they will not reach the extreme growth rates seen at the height of the crisis.