Hot Drinks in Serbia

COVID-19 impact on hot drinks

Due to the outbreak of COVID-19 in Serbia, hot drinks retail sales are increasing notably, moving volume sales from a decline in 2019 to positive growth in 2020. This growth is driven from lockdown periods and ongoing home seclusion, with consumers increasing their consumption of hot drinks within the home.

COVID-19 country impact

A state of emergency was introduced in the country on 15 March, which remained in place until 7 May. The borders were closed from 20 March.

Company response

Several companies in Serbia have actively responded to the outbreak of COVID-19, by supporting the country in its fight against the virus: helping both the communities and medical system during 2020. Leading player in tea, Fructus, was one of the first to respond to the call from the Serbian Business Chamber, donating its products to medical centres and organisations across the country.

Retailing shift

Due to the outbreak of COVID-19, an increasing number of consumers have migrated to e-commerce, which is set to record stronger growth in 2020 compared to 2019. This is the result of consumers being cautious about shopping in public, especially older and more vulnerable consumers, who were wary of leaving the home, even with safety measures in place.

Foodservice vs retail split

In all hot drinks categories, there is a major shift from foodservice to retail in 2020, due to the outbreak of COVID-19. This was the most significant in coffee, with coffee being frequently enjoyed in foodservice outlets.

What next for hot drinks?

With foodservice sales record a significant decline in 2020, on-trade volume sales of hot drinks is set to recover in Serbia during 2021, aligned to the time when consumers will feel confident in visiting foodservice establishments once more. 2020 is also set to see a double-digit uplift in volume growth for foodservice, with sales aligning to those recorded pre-COVID-19, in 2019.

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