The soft-drinks market in Portugal witnessed a 5.1% decrease in volume in the first four months of 2018, according to a report by Kantar Worldpanel.
Soft drinks are bought by 58% of Portuguese households, but Kantar Worldpanel said that the introduction of the sugar tax on beverages in February 2017 affected purchase quantity.
In September of last year, Portugal’s Ministry of Health reported that the tax on high-sugar beverages reduced soft-drink sales by 25%.
Colas and iced teas, which account for 70% of the soft-drinks category, have been affected the most, with price increases resulting from the sugar tax, leading buyers to move away from the category.
Demand For Healthy Drinks
The waters category has benefitted from the sugar tax introduction, on the other hand, reporting 4.5% growth in volume year on year.
Sugar-free colas are similarly sought after, with the segment attracting 156,000 new buyers between 2016 and 2017.
Families with children account for 62% of the decrease in volume for soft drinks, according to Kantar Worldpanel.
Sporadic Consumption
At the home consumption level, soft drinks are increasingly being consumed more sporadically, with increased demand during weekends, the data found.
In terms of out-of-home consumption, consumers are seeking alternatives in the form of sparkling and flavoured waters.
Juices, nectars, mixed spirits, and cider are also gaining prominence in the out-of-home market, the research firm said.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.
