Fortified/Functional Beverages in Austria

PROSPECTS

Energy drinks and fortified/functional fruit/herbal tea remain key drivers

Fortified/functional beverages continued to increase at a healthy single-digit pace in 2018 on the back of further sales expansion in energy drinks and functional/fortified fruit/herbal tea. Although nearing maturity, energy drinks continues to see value growth thanks to solid unit price growth.

Fortified/functional increasingly making inroads into juice

While energy drinks and fortified/functional fruit/herbal tea will account for the majority of sales in fortified/functional beverages throughout the forecast period, other areas are beginning to play a more prominent role in fortified/functional beverages. A case in point is fortified/functional fruit/vegetable juice, especially 100% juice.

Fortified/functional set to expand in RTD tea

Another soft drinks category where fortified/functional varieties will likely play an increasingly prominent role is RTD tea. With a premium segment emerging in this area, companies will increasingly focus on premium positioning over the coming years by promoting the purported health and wellness benefits of their products.

COMPETITIVE LANDSCAPE

Red Bull continues to lead the way within energy drinks

Given the predominance of energy drinks, manufacturers in this area continue to figure among the leading players in fortified/functional beverages. Red Bull remains by far the most important player within energy drinks in Austria and therefore fortified/functional beverages, with Monster Energy Austria also ranking among the top-six players.

Juice producers increasingly launch enriching products with vitamins and minerals

In 2018, Rauch Fruchtsäfte, the leading player in HW juice in Austria, launched its Little Sunshine Juice Bar super-smoothie range, which contains added vitamin C and calcium. This highlights the increasing importance of such health and wellness lifestyle drinks within juice among Austrian consumers.

Functional bottled water stagnating in face of competition from mineral water

While fortified/functional beverages are expected to continue growing in popularity in soft drinks categories such as fruit juice and RTD tea, fortified/functional bottled water has been falling out of favour among Austrian consumers in recent years. Although bottled water remains highly popular with local consumers, the widespread availability of regular mineral water means there is little demand for functional bottled water.

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