Sports Drinks in Estonia

PROSPECTS

Scope for growth despite competition from functional bottled water

Despite its long presence, sports drinks in Estonia is still a developing category, thus explaining continued strong value and volume growth in 2019. This trend is largely being driven by the increasing number of people regularly participating in sports.

Health and wellness trend boosts sales

The category is also benefiting from the gradually changing attitude towards sports drinks, which faced a high level of scepticism during the review period due to their perception as being artificial and unnecessary. Promotions and constant innovation within the category will continue to fuel this trend over the coming years.

Demand forecast to be boosted by hot summer temperatures

As was seen during recent very hot weather in the summer of 2018, consumers made efforts to stay well-hydrated, often resorting to isotonic drinks to do so, in addition to consuming bottled water. If temperatures during the summer months continue to climb over the coming years, it is likely that isotonic drinks will be pushed by producers as thirst quenchers and as a source of hydration during hot periods and not only as drinks to support sports activities.

COMPETITIVE LANDSCAPE

Local origins help ensure A Le Coq continues to dominate

A Le Coq continues to dominate sports drinks sales in Estonia. The company maintains consumer interest by constantly updating its range of Arctic Sports brands and heavily investing in social marketing, event marketing and PR campaigns.

Growth opportunities fuel investment in new product development

Due to positive projections regarding value sales of sports drinks over the forecast period, producers are expected to continue to invest in new product development in order to generate consumer interest and boost sales. Furthermore, investments in promotional activities are likely to remain high as people in Estonia are becoming increasingly active and involved in different sports activities, thus creating more interest in and demand for sports drinks.

Little likelihood of new local players gaining significant sale share

Over the forecast period, sports drinks is set to face more competition from powder concentrates and other formats with isotonic characteristics such as Enervit, which is available in gel and powder versions. Nevertheless, local producer A Le Coq will continue to perform well due to its well-known brands, continuous promotional activities and investment in new product development.

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