Soft Drinks - Bhutan

The Soft Drinks market in Bhutan has been experiencing significant growth in recent years.

Customer preferences: Bhutanese consumers have shown a growing preference for soft drinks as a result of changing lifestyles and increasing disposable income. Soft drinks are seen as a convenient and refreshing beverage option, especially among the younger generation. The availability of a wide variety of flavors and packaging sizes has also contributed to the popularity of soft drinks in Bhutan.

Trends in the market: One of the key trends in the Soft Drinks market in Bhutan is the increasing demand for healthier and natural options. Consumers are becoming more health-conscious and are seeking beverages that are low in sugar and free from artificial ingredients. This has led to a rise in the demand for natural and organic soft drinks, including those made from fruit extracts and herbal ingredients. Another trend in the market is the growing popularity of carbonated soft drinks. Despite concerns about the health effects of carbonated beverages, Bhutanese consumers continue to enjoy carbonated soft drinks due to their refreshing taste and wide availability. The carbonated soft drinks segment is witnessing strong growth, with both local and international brands competing for market share.

Local special circumstances: Bhutan's unique cultural and environmental factors have also influenced the Soft Drinks market in the country. Bhutan is known for its traditional herbal medicine practices, and this has translated into a demand for soft drinks that offer health benefits. Local brands have capitalized on this trend by introducing soft drinks that incorporate traditional ingredients known for their medicinal properties. Furthermore, Bhutan's commitment to environmental sustainability has led to an increased demand for eco-friendly packaging in the Soft Drinks market. Consumers are actively seeking products that are packaged in recyclable materials and have a minimal impact on the environment. This has prompted both local and international soft drink companies to adopt sustainable packaging practices in order to cater to this demand.

Underlying macroeconomic factors: The growth of the Soft Drinks market in Bhutan can be attributed to several underlying macroeconomic factors. Bhutan has experienced steady economic growth in recent years, resulting in an increase in disposable income levels. This has enabled consumers to spend more on non-essential items, such as soft drinks. Additionally, the tourism industry has played a significant role in driving the demand for soft drinks in Bhutan. As the number of tourists visiting the country continues to rise, there is a growing need for beverages that cater to the preferences of international visitors. Soft drink companies have responded to this demand by introducing new flavors and packaging options that appeal to both local and foreign consumers. In conclusion, the Soft Drinks market in Bhutan is experiencing growth due to changing customer preferences, including a demand for healthier options and the popularity of carbonated beverages. Local special circumstances, such as the emphasis on traditional medicine and environmental sustainability, have also influenced the market. Underlying macroeconomic factors, such as economic growth and the tourism industry, have further contributed to the development of the Soft Drinks market in Bhutan.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.