Concentrates in Switzerland

2021 DEVELOPMENTS

COVID-19 crisis heralds stronger popularity of concentrates

Concentrates saw solid growth in 2021 driven by the shift towards remote working, especially among households with children. Concentrates is well adapted to the consumption habits of people spending more time at home and, unlike other soft drinks categories, is little affected by a reduction in on-the-go consumption.

Flavour innovations and natural ingredients fuel interest among consumers

Growth in liquid concentrates sales remains largely driven by premium products containing natural ingredients including organic variants, with a focus on provenance, especially among products targeted towards adults. More sophisticated flavours remain a major innovation axis for liquid concentrate brands to build a premium image and a distinctive offer compared to other soft drinks.

Private label dominates but premium brands find room for growth

Private label dominates concentrates in volume terms, led by Migros Genossenschaftsbund, helped by a particularly strong position in reduced sugar liquid concentrates and powder concentrates. With a strong position in reduced sugar liquid concentrates, a wide range comprising the label Aus der Region (from the region) and several organic products, Migros is well positioned to meet the rising demand for healthier, organic and locally-sourced concentrates.

PROSPECTS AND OPPORTUNITIES

Concentrates expected to increase its consumer base

Rising environmental concerns, particularly the willingness among consumers to reduce packaging waste and preserve water resources, are expected to be a key growth driver for liquid concentrates. Despite retaining a relatively small size in the overall soft drinks market, concentrates could benefit from gaining sales from other soft drinks including carbonates and juices.

Innovations set to focus on natural ingredients and reduced sugar recipes

The demand for concentrates with natural ingredients and innovative flavours is expected to remain strong and to fuel premiumisation. Flavour innovations are predicted to remain a major growth driver for manufacturers, especially players with a premium positioning such as Monin and Morand.

Unfavourable demographic factors and health concerns may reduce growth

Demographic factors may continue to hinder the future growth of concentrates. As children form a major part of its consumer base, concentrates could struggle to increase its penetration and will need to target adult consumers more aggressively to broaden its appeal.