Carbonates in Ukraine

PROSPECTS

Consumers’ increasing health awareness constrains carbonates growth

The evolving health and wellness trend does not favour carbonates due to their high sugar content. In 2019, carbonates recorded modest growth, driven by gradual increase in consumers’ disposable income and high growth in healthier subcategories of carbonates such as low calorie cola.

Health and wellness trend drives product development in low calorie cola

Low calorie cola shows the highest growth in carbonates driven by the health and wellness trend. Producers meet consumers’ health concerns with increased offer of low sugar drinks.

Offer of small packs expands due to consumers’ demand for convenience

2019 sees an expanding offer of small packs in carbonates. Among smaller sizes, volumes of 0.

COMPETITIVE LANDSCAPE

Coca-Cola leads with strongest brands

Coca-Cola leads with well-known brands such as Coca-Cola, Fanta, Sprite and Schweppes. Global presence, technological advantage and good marketing budgets gives Coca-Cola competitive edge over smaller players in terms of product development, positioning, promotion and resilience to unfavourable market conditions.

Consumers’ price sensitivity underpins private label growth

2019 is marked by a growing offer of private label in non-cola carbonates targeted at the most price-sensitive consumers. Major retailers such as ATB, Fozzy Group and Novus offer private label carbonates at a price much lower than the category average, most often in lemonade/lime and other non-cola carbonates.

Kvas and low calorie carbonates are possible growth niches

As the main reason for the decline of carbonates is the adverse health effect due to high sugar content, the subcategories in carbonates with the most potential in the long run are the healthiest ones, such as low calorie carbonates and kvas. While low calorie carbonates benefits from low or no sugar content, kvas is considered a healthy subcategory due to its natural ingredients.

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