Non-Alcoholic Drinks - Iceland

The Non-Alcoholic Drinks market in Iceland has seen steady growth in recent years, driven by changing consumer preferences and a growing focus on health and wellness. Customer preferences in Iceland have shifted towards healthier beverage options, with consumers increasingly seeking out low-sugar and natural products. This trend is in line with global preferences, as consumers worldwide are becoming more health-conscious and seeking alternatives to sugary drinks. As a result, sales of carbonated soft drinks have declined in favor of healthier options such as bottled water, herbal teas, and functional beverages. Trends in the market include the rising popularity of functional beverages, which offer additional health benefits beyond basic hydration. Functional beverages such as energy drinks, sports drinks, and enhanced water products have gained traction in Iceland, as consumers look for products that can boost energy levels, improve athletic performance, or provide other specific health benefits. This trend is driven by a growing interest in fitness and wellness, as well as an aging population that is more focused on maintaining their health. Another trend in the market is the increasing demand for locally sourced and sustainable products. Iceland has a strong emphasis on environmental sustainability, and consumers are willing to pay a premium for products that are produced locally and have a smaller carbon footprint. This trend is in line with global consumer preferences, as sustainability and ethical sourcing have become important factors in purchasing decisions. Local special circumstances in Iceland also play a role in shaping the Non-Alcoholic Drinks market. The country's unique geography and climate make it challenging to produce certain types of beverages locally. For example, the cold climate and limited agricultural land make it difficult to grow fruits and vegetables for juice production. As a result, Iceland relies heavily on imports for certain types of non-alcoholic drinks, which can impact pricing and availability. Underlying macroeconomic factors also influence the Non-Alcoholic Drinks market in Iceland. The country has a high standard of living and disposable income levels, which allows consumers to prioritize quality and health when making purchasing decisions. Additionally, Iceland has a strong tourism industry, and the influx of international visitors has contributed to the growth of the Non-Alcoholic Drinks market. Tourists often seek out local products and unique experiences, which has created opportunities for Icelandic beverage companies to showcase their offerings. In conclusion, the Non-Alcoholic Drinks market in Iceland is developing in response to changing consumer preferences, a focus on health and wellness, and a desire for sustainable and locally sourced products. These trends, combined with local special circumstances and underlying macroeconomic factors, are shaping the market and driving growth in certain product categories.

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.