Concentrates in the Netherlands

2021 DEVELOPMENTS

Slow return to normality in 2021 reduces demand for concentrates after the spike seen in the previous year

Thanks to their long shelf life and the fact that small amounts of product are required for each drink, concentrates proved to be a popular choice for consumers looking to stockpile during the early stages of the COVID-19 crisis. During March and April 2020, in particular, consumers bought additional bottles of liquid concentrates in order to ensure they had enough for a few weeks or even months in case of supply shortages and to reduce the frequency of shopping trips.

Sugar reduction remains a significant trend in concentrates in 2021

Sugar reduction and more sustainable packaging are two major trends in the soft drinks category. However, in liquid concentrates sugar reduction is by far the most relevant trend as there were few examples of sustainable packaging in the category at the end of the review period.

Category dependent on sales promotions as consumers prefer cut price brands over private label

Liquid concentrates is heavily dependent on sales promotions as over 50% of volumes are sold at a lower promotional price. Supermarket chains often promote brands such as Karvan Cevitam with a EUR2.

PROSPECTS AND OPPORTUNITIES

Reduced sugar liquid concentrates fares best over the forecast period as parents endeavour to limit their children’s sugar consumption

HJ Heinz is set to remain the leading player in liquid concentrates in off-trade value terms, although it is likely to see an ongoing erosion in its share. Although the company owns two of the major brands in the category: Karvan Cevitam and Roosvicee, Karvan Cevitam’s regular range will come under growing pressure, with consumers migrating away from products with a high sugar content.

The availability of popular carbonates brands in the Sodastream system boosts the popularity of concentrates over the forecast period

Sodastream International BV is another company that is expected to do well during the forecast period, having expanded its share significantly since being taken over by PepsiCo Inc in 2018. Since then, the company has become very active in promoting its system for carbonating tap water at home and has been very aggressive in expanding its distribution.

Popular brands increasingly available on promotion as the country goes into a pandemic-related recession

It is unlikely that private label will see any significant increase in share over the forecast period. As a result, the category will continue to be populated by large brands such as Karvan Cevitam.