Flavour innovation and lifestyle trends fuel steady expansion
Demand for soft drinks in Azerbaijan is being impacted by moderate price increases (which maintain affordability), lifestyle trends and consumers’ increasing openness to new flavours. Carbonates, the largest category, remains robust due to the enduring appeal of the heritage brands, while experimentation is boosting smaller categories, including RTD tea and energy drinks. One notable characteristic of the market is that demand for sugar-free and reduced-sugar drinks remains limited, despite global health trends. Baku Coca-Cola Bottlers maintains market leadership, with A+Co MMC emerging as the most dynamic player, and local brands such as Enna MMC and Azersun Holding gaining traction. Convenience stores, and e-commerce are the fastest-growing channels, with traditional small local grocers still vital in rural areas. Meanwhile, domestic travel is fuelling foodservice sales.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft Drinks industry in Azerbaijan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft Drinks industry in Azerbaijan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Soft Drinks in Azerbaijan report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Soft Drinks in Azerbaijan?
- To what extent are health considerations impacting consumption of Soft Drinks in Azerbaijan?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in Azerbaijan?
- Which are the leading brands in Soft Drinks in Azerbaijan?
- What potential exists for multinational or domestic soft drinks companies to expand in Azerbaijan?
- How are products distributed in Soft Drinks in Azerbaijan?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in Azerbaijan
Flavour innovation and lifestyle trends fuel steady expansion
KEY DATA FINDINGS
Steady growth despite rising price sensitivity
RTD tea leads volume growth
Flavour exploration drives momentum
Affordability and shifting lifestyle trends will support ongoing expansion
Product innovation will be key growth driver
Traditional preferences will limit growth of niche offerings
Baku Coca-Cola Bottlers leads sales
A+Co MMC is most dynamic performer
Local players gain traction
Small local grocers leads distribution
Convenience stores lead growth
E-commerce sees continued expansion
Foodservice vs retail split
COUNTRY REPORTS DISCLAIMER
Bottled Water in Azerbaijan
KEY DATA FINDINGS
Demand remains resilient amid tap water quality concerns
Growth is sustained by infrastructural challenges and changing consumer lifestyles
Sparkling water sees rapid growth
Persistent concerns over tap water quality will ensure steady demand
Sparkling flavoured varieties will be main focus of innovation
Demand will remain resilient, despite infrastructure investments aimed at improving water quality
Babek Sirab Ltd retains its lead
Azersun Holding MMC gains traction through new launches
Small local grocers remain key to bottled water sales
E-commerce sees rapid growth, while convenience stores hold considerable potential
Carbonates in Azerbaijan
KEY DATA FINDINGS
Flavour innovation drives growth
Continued growth for carbonates
Regular cola carbonates is strongest performer
Regular cola will drive growth in carbonates
Flavour innovation will outpace health-based formulations
Baku Coca-Cola Bottlers Ltd will remain resilient
Baku Coca-Cola Bottlers continues to dominate sales
A+Co MMC sees strongest performance
Small local grocers continue to lead sales
E-commerce and convenience stores lead growth
Concentrates in Azerbaijan
KEY DATA FINDINGS
Concentrates face declining demand as RTD alternatives gain ground
Concentrates remains undeveloped
Powder concentrates fail to expand sales beyond older audience
Concentrates will struggle to gain traction amid limited innovation and engagement
Liquid concentrates will continue to lose ground to more appealing RTD alternatives
Powder concentrates has potential to attract health-focused consumers
Proksima ZAO leads fragmented landscape
Leovit Nutrio drives growth through health and wellness focus
Small local grocers remain vital in hard-to-reach areas
Convenience stores holds considerable potential
Concentrates Conversions
Juice in Azerbaijan
KEY DATA FINDINGS
Juice drinks drive modest growth amid price sensitivity
Juice sales see modest gains amid price pressures
Juice drinks benefits from affordability and alignment with local taste preferences
Slow growth in context of continued consumer price sensitivity
Flavour innovation will drive momentum in juice drinks
Demand for 100% juice will be constrained by preference for fresh fruit
Mars retains its lead
Cappy brand makes further gains
Small local grocers remain key in rural areas
Shift towards modern retail channels
RTD Coffee in Azerbaijan
KEY DATA FINDINGS
RTD coffee remains niche, premium-focused beverage
RTD coffee benefits from growing coffee culture
Energy drinks continue to compete with RTD coffee
RTD coffee will remain niche product
RTD coffee offers significant innovation potential
Energy drinks will continue to pose strong competition
Lotte Chilsung Beverage Co Ltd maintains its lead
Aztrade MMC gains share with HELL Ice Coffee
Supermarkets leads sales of RTD coffee, reflecting roots in modern retail
E-commerce and convenience stores drive expansion
RTD Tea in Azerbaijan
KEY DATA FINDINGS
Innovation and affordability fuel demand
RTD tea sees rapid growth
Regular still RTD tea dominates sales
Buoyant growth will continue, despite seasonal demand
Consumers will seek unconventional flavours
Still RTD will continue to dominate sales
Baku Coca-Cola Bottlers leads with Fuse Tea
Enna MMC creates a Buzz
Small local grocers remains leading channel, amid growing competition from supermarkets
E-commerce leads growth
Energy Drinks in Azerbaijan
KEY DATA FINDINGS
Energy drinks retain momentum as market matures
Energy drinks benefit from association with active lifestyles
Regular energy drinks dominate sales with interest in reduced sugar variants remaining limited
Energy drinks to sustain growth amid price stability and wide distribution
Flavour innovation will be key growth driver
Brands will leverage power of social media to reach younger customers
Avrora Ltd consolidates its lead through investment in Bizon
A+Co MMC gains traction through Full Energy brand
Small local grocers hold sway
Convenience stores
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
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- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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