Concentrates in Estonia

PROSPECTS

Concentrates sees modest growth in Estonia

Concentrates is amongst the least dynamic soft drinks categories in Estonia, as growth rates are modest and the category is expected to gradually decline in volume terms over the forecast period. Concentrates is being negatively impacted by the health and wellness trend, as these are not considered healthy drinks.

Concentrates have not successfully been positioned as healthy drinks

Even though many producers have tried to position concentrates as 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 refute this perception.

Possible sugar taxation to hamper sales

Despite the discussions surrounding sugar taxation in Estonia not taking any concrete form, the talks are still ongoing, and many producers anticipate that a tax will be implemented at some point within the forecast period. In such a scenario, concentrates would be significantly affected, and sales would see a volume decline as the tax would push up prices.

COMPETITIVE LANDSCAPE

Domestic company Põltsamaa Felix leads concentrates

The local company Põltsamaa Felix led concentrates in off-trade value terms in 2018. It is known for its Kannujook brand, which is well-known and trusted amongst local consumers.

New product developments are rather scarce

Innovation activities are rare in the mature concentrates category, as producers often focus on other more dynamic categories. One of the producers investing in new product development is the small local producer Rongu Mahlad, as it is active only in concentrates, juice and jam.

Concentrates sees competition from other categories

As the health and wellness trend is pushing Estonian consumers towards products which they consider healthier, concentrates has to compete with categories such as juice and bottled water. More specifically, juice drinks and flavoured bottled water are similar to drinks made from concentrates.

Concentrates conversions

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