Carbonates in Tunisia

2020 IMPACT

Pressures created by the COVID-19 pandemic result in unit price increases

Volume sales of carbonates declined over the course of 2020 as the pressures created by the COVID-19 pandemic suppressed demand. One of the major factors that contributed to the falling demand seen in the category during the year was the increase seen in the average unit price of carbonates.

Social distancing and economic pressures due to COVID-19 suppress demand

Volume sales of carbonates declined in both the off-trade and on-trade channels during 2020 as the COVID-19 pandemic had a negative impact on demand. One of the most important factors to take into consideration is that the quarantine lockdown and strict adherence to the principles of social distancing and home seclusion that were seen in response to the onset of the COVID-19 pandemic meant that most Tunisians spent most of their time at home at the peak of the pandemic.

On-trade sales come under pressure due to the closure of the hospitality industry

During 2020, on-trade sales of carbonates were heavily negatively impacted by the quarantine lockdown that was imposed in Tunisia in response to the COVID-19 pandemic. One of the most important aspects of this quarantine lockdown was that all restaurants, tea rooms, hotels and bars were ordered to remain closed for on-trade service for the duration of the official lockdown.

RECOVERY AND OPPORTUNITIES

Growing health and wellness trend set to place limits on sales recovery

Negative growth is expected to continue being recorded in on-trade and off-trade volume sales of carbonates in Tunisia over the forecast period. One of the main factors that is expected to present challenges to the category is the increasing consumer awareness of the dangers of consuming too much sugar and other artificial ingredients.

Société Tunisienne de Boissons Gazeuses unlikely to face challenges from rivals

Société Tunisienne de Boissons Gazeuses can be expected to remain the dominant leading player in carbonates throughout the forecast period. Indeed, at the end of the review period, the company was responsible for 10 of the 12 leading brands in the category, including many of the most popular international carbonates brands.

Unit price growth likely to foreshadow the introduction of smaller pack sizes

High inflation and the challenges presented by the COVID-19 pandemic are likely to presage unit price inflation in carbonates during the forecast period. The country’s leading carbonates manufacturers are likely to seek to recover losses incurred during 2020 as the COVID-19 pandemic presented substantial challenges to their ability to operate profitably, with the complete shutdown of the consumer foodservice industry for an extended period central to this unfavourable scenario.