Soft Drinks - Portugal

Portugal, a country known for its beautiful beaches and rich history, is also experiencing interesting developments in its Soft Drinks market.

Customer preferences: Portuguese consumers have shown a growing preference for healthier and more natural beverage options. This shift in consumer behavior can be attributed to a global trend towards healthier lifestyles and a greater awareness of the negative effects of sugary drinks. As a result, there has been a rise in demand for low-sugar or sugar-free soft drinks, as well as beverages made from natural ingredients such as fruit juices and herbal infusions.

Trends in the market: One notable trend in the Soft Drinks market in Portugal is the increasing popularity of functional beverages. These are drinks that offer additional health benefits beyond hydration, such as energy-boosting or immune-boosting properties. This trend can be seen in the rising sales of energy drinks and drinks fortified with vitamins and minerals. Portuguese consumers are increasingly seeking out beverages that not only quench their thirst but also provide them with added value in terms of their health and well-being. Another trend in the Soft Drinks market in Portugal is the growing demand for premium and artisanal beverages. Portuguese consumers are becoming more discerning when it comes to their beverage choices and are willing to pay a premium for high-quality and unique products. This has led to an increase in the availability of craft sodas, specialty teas, and locally produced fruit juices in the market.

Local special circumstances: Portugal's warm climate and tourism industry also play a role in shaping the Soft Drinks market. The country's hot summers create a high demand for refreshing beverages, particularly carbonated soft drinks and bottled water. Additionally, the influx of tourists during the summer months further drives the consumption of soft drinks as visitors seek to stay hydrated while exploring the country's attractions.

Underlying macroeconomic factors: The Soft Drinks market in Portugal is also influenced by macroeconomic factors such as income levels and consumer spending. As the country's economy continues to recover from the global financial crisis, consumers have more disposable income to spend on non-essential goods, including soft drinks. This has contributed to the overall growth of the market. Furthermore, the increasing urbanization and modernization of the country have led to a shift in consumer preferences towards convenience and on-the-go products, which has benefited the soft drinks industry. In conclusion, the Soft Drinks market in Portugal is experiencing a shift in consumer preferences towards healthier and more natural options, as well as an increasing demand for functional and premium beverages. The country's warm climate and tourism industry also contribute to the market's development. Overall, the market is influenced by underlying macroeconomic factors such as income levels and consumer spending patterns.

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.