Carbonates in Tunisia

PROSPECTS

Volume sales stagnate, owing to the maturity of the category

Carbonates is a mature category, and will register only slow volume growth over the forecast period. There are still negative factors surrounding carbonates, including deteriorating purchasing power, which will continue to affect performance, and the fact that consumers are gradually shifting away from carbonates to healthier options.

Possible options to sustain category sales

To continue growing, carbonates will have to develop further in the on-trade, and also exploit the rise of modern grocery retailers in the country. Another key option is to address young people, who are usually not as concerned about their health, and this could help prevent carbonates from registering declines.

Healthier options threaten the category

With many consumers linking high consumption of carbonates to a higher prevalence of diabetes and obesity, carbonates are likely to become increasingly perceived as having a negative impact on health over the forecast period. Consequently, consumers are likely to switch to healthier alternatives, such as packaged juices and flavoured bottled water.

COMPETITIVE LANDSCAPE

Local production dominates carbonates in Tunisia

The sale of carbonates in Tunisia is strictly regulated by the government. Foreign companies are still not permitted to incorporate fully-owned subsidiaries in Tunisia, and a domestic shareholding is always required.

Independent small grocers hold a majority share of carbonates

Distribution of carbonates remained unchanged in 2018, with independent small grocers continuing to dominate off-trade volume sales. However, the growing penetration of supermarkets and hypermarkets is expected to lead to modern formats gaining share.

Low-end brands expected to enter the market

Given the increasing competition from flavoured bottled water products, which are less expensive, additional low-end brands in carbonates are expected to enter the market with very competitive prices.

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