Soft Drinks - Iceland

The Soft Drinks market in Iceland has experienced significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In Iceland, there has been a shift in customer preferences towards healthier beverage options. Consumers are increasingly seeking out soft drinks that are low in sugar, free from artificial additives, and made with natural ingredients. This is in line with global trends towards healthier lifestyles and a growing awareness of the impact of sugary drinks on health. As a result, there has been a rise in demand for natural and organic soft drinks, as well as functional beverages that offer additional health benefits.

Trends in the market: One of the key trends in the Soft Drinks market in Iceland is the growing popularity of locally produced beverages. Icelandic consumers have shown a strong preference for products that are made in their own country, as they value the quality and authenticity associated with these products. This trend has led to the emergence of several small-scale soft drink producers in Iceland, offering a range of unique and innovative beverages that cater to local tastes and preferences. Another trend in the market is the increasing demand for non-alcoholic alternatives. Iceland has a relatively high alcohol consumption rate, but there is a growing segment of the population that is choosing to abstain from alcohol. This has created a market opportunity for soft drink manufacturers to develop sophisticated non-alcoholic options that can be enjoyed as a substitute for alcoholic beverages. As a result, there has been a rise in the availability of premium non-alcoholic drinks in Iceland, including alcohol-free beers, mocktails, and artisanal sodas.

Local special circumstances: Iceland's unique geography and climate have also had an impact on the Soft Drinks market. The country's abundance of natural resources, such as pure glacial water and geothermal energy, has allowed for the production of high-quality beverages. Soft drink manufacturers in Iceland have capitalized on these resources, using them as selling points to differentiate their products in the market. Additionally, the country's small population size and strong sense of national identity have created a supportive environment for local businesses, enabling them to thrive and compete with larger international brands.

Underlying macroeconomic factors: The Soft Drinks market in Iceland has been influenced by a range of macroeconomic factors. The country's strong economy and high disposable income levels have contributed to increased consumer spending on soft drinks. Additionally, Iceland's growing tourism industry has brought in a steady stream of visitors who are eager to try local products, including soft drinks. This has created a larger customer base and boosted sales for soft drink manufacturers. Furthermore, government initiatives aimed at promoting healthy lifestyles and reducing sugar consumption have also had an impact on the market, driving the demand for healthier soft drink options. In conclusion, the Soft Drinks market in Iceland has experienced growth due to changing customer preferences, emerging trends, and local special circumstances. The demand for healthier beverages, locally produced drinks, and non-alcoholic alternatives has driven innovation and competition in the market. Additionally, Iceland's unique geography and strong economy have provided favorable conditions for the growth of the Soft Drinks market.

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.