Tea in Bosnia-Herzegovina

PROSPECTS

Perception of tea as a healthy hot drink

Off-trade performance within tea in 2018 was one of the best of the review period in Bosnia-Herzegovina. Consumers are turning to tea for different reasons, although most consumers agree that the primary appeal of tea is that it is a healthy hot drink, despite the fact industrially manufactured brands often contain flavour enhancers, colorants and other additives.

Tapping into higher growth potential on-trade

Although average review period on-trade performance in tea in Bosnia-Herzegovina was weaker than off-trade performance, during the second part of the review period on-trade sales increased at a slightly higher, albeit similar, growth rate. However, the performance of tea on-trade remains strongly restricted by the strong penetration of coffee in this channel.

Tea making functional claims

Brands with functional claims recorded the strongest growth in tea at the end of the review period in Bosnia-Herzegovina. Such products primarily refer to slimming, black and green teas, with demand being driven by increasing awareness among consumers regarding the benefits of using these products.

COMPETITIVE LANDSCAPE

Domestic player Plantago leads tea

Domestic manufacturer Plantago continued to lead tea in Bosnia-Herzegovina at the end of the review period. This small domestic, privately held, company has developed an image as a respected manufacturer by specialising in traditionally popular tea varieties and offering high quality domestic ingredients, most of which it manufactures itself.

Teekanne focuses on variety

Teekanne saw a significant increase in value share within tea in 2018, with the company offering the most colourful tea range in terms of varieties, positioning claims and overall product design. Furthermore, Teekanne is one player that is equally as successful on-trade as off-trade, thus allowing consumers to indulge in some aspects of the on-trade experience at home.

Example of niche positioning

Tea in Bosnia-Herzegovina is dominated by the tea bags format. Loose tea is almost exclusively reserved for medicinal teas, while instant tea only became available in Bosnia-Herzegovina recently.

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