The largest NH beverages category, NH bottled water, will record a robust performance in 2020, with volume sales boosted by COVID-19 across all retailing channels. Notably, larger pack sizes for home consumption saw stronger demand as consumers stockpiled them to reduce the frequency of shopping trips and limit time outside the home.
Among the most dynamic categories of NH hot drinks in 2020 are NH green tea and NH herbal team, which saw strong sales since the start of the pandemic. Sales of these categories were driven by a growing demand for functional and wellbeing teas as consumers became increasingly health conscious.
During the pandemic, NH RTD tea has benefitted from its association with green tea, which has the perception of being natural and healthy. As such, green tea is increasingly being used as an ingredient in NH RTD tea products.
NH bottled water is highly mature and is expected to face stagnation in the forecast period. This is partially due to the high quality of tap water in Switzerland, which will particularly affect still bottled water.
Over the forecast period, energy-boosting NH beverages within RTD coffee and RTD tea are expected to be more widely available in line with their rising popularity. The categories are also likely to see new product developments utilising natural ingredients such as guarana, mate, and matcha to boost their healthy perception amongst consumers.
Over the forecast period, sales of NH tea are expected to remain relatively stable, with the main attention in terms of promotion and manufacturing, being on organic tea and functional tea. Given the expected developments in these other categories, NH tea will face increasing competition from them.
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