Concentrates in Estonia

PROSPECTS

Concentrates sees modest growth in Estonia

Concentrates posted an increase in current value sales in 2019, largely as a result of the stronger performance of powder concentrates, where products with functional ingredients such as sports drinks are growing in popularity. Nevertheless, concentrates is among the least dynamic soft drinks categories in Estonia, with volume sales in the category expected to gradually decline over the forecast period.

Demand impacted by failure to position concentrates as healthy

Although many producers have tried to position concentrates as being healthy, they have failed to convince health-conscious consumers. Concentrates are often criticised for their high sugar content and artificial ingredients, although local producers have made attempts to address this perception.

Uncertainty over potential of sugar taxation to impact sales

Sports concentrates are still developing and will continue to boost overall performance within the category over the coming years. Nevertheless, liquid concentrates is now a rather mature category, with demand set to continue falling.

COMPETITIVE LANDSCAPE

Strong local positioning ensures Orkla Eesti remains in pole position

Orkla Eesti continues to lead concentrates volume and value sales, with the company’s success being attributed to the strong performance of its Kanuujook brand. This comes under the umbrella of the well-known and highly appreciated Põltsamaa range within fruit processing, where it is commonly perceived as a national brand, despite being owned by Orkla.

New product developments focused within powder concentrates

Given the maturity of liquid concentrates, most significant new launches over the coming years will be seen within powder concentrates. For example, Nutrimedical OÜ recently launched a new Enervit sport isotonic drink which is especially dedicated to the Ironman Tallin triathlon event, which was also sponsored by Enervit.

Growing competition from other categories

As the health and wellness trend is pushing Estonian consumers towards products which they consider to be healthier, concentrates has to compete with categories such as juice and bottled water. Products in these competing categories have the advantage of being ready to consume immediately as they do not have to be diluted.

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