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Carbonates in Spain

Spain carbonates market: EUR2.3 billion industry in 2012


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2014-02-18 20:31:02 - Carbonates in Spain - a new market research report on companiesandmarkets.com

Cía Servicios de Bebidas Refrescantes remains the leading player in the Spain carbonates market with an off-trade value share of 63% in 2012. The company‟s dominance is attributed to the strength of its core brands: Coca-Cola, Sprite and Fanta, which lead their respective categories. Other key factors are a wide distribution network and large financial muscle, which allows for massive investment in advertising and marketing.

Carbonates experienced very marginal growth in off-trade current value sales in 2012 to reach €2.3 billion. In off-trade volume terms, sales increased slightly faster, though still by less than 1%. The slightly slower growth performance in value sales is linked to the number of price promotions and discount packs offered by leading manufacturers, as a way

 

 

to stimulate consumption. In the same vein, manufacturers offered consumers extra volume for the same price; for example, 2.25 litre Coca-Cola for the price of two litre bottles. The increasing preference of consumers for larger sizes, in order to pay lower per litre prices, dampened value sales.

The two main trends of the review period are expected to continue shaping the evolution of carbonates in Spain. One is the extension of the economic crisis, which is predicted to further damage the purchasing power of Spanish consumers, forcing consumers to restrain their expenditure, at least during the first half of the forecast period. If the economic recession is ongoing, consumers will continue to cut down on leisure activities, which will damage the on-trade consumption of carbonates. Consumers will also maintain price-orientated purchasing patterns in the off-trade channel, which will benefit value for money references, discount packs and large packaging, but ultimately damage the category in value sales terms.

Key Headlines

- Off-trade current value sales grow only marginally in 2012 to reach €2.3 billion
- The economic downturn remains the major factor influencing carbonates in 2012
- In 2012 mixers records the fastest off-trade current value sales growth of 7%
- The average off-trade current unit price of carbonates declines marginally in 2012
- Cía Servicios de Bebidas Refrescantes dominates in 2012 with a 63% share of off-trade value sales
- Carbonates is set to record flat off-trade constant value growth during the forecast period

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Author:
Mike King
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