Eastern Europe

Retail volume sales of coffee saw a stagnant performance in 2023, as the high cost of living affected consumer purchasing behaviour. Forced to spend more on utilities and food, Latvians shifted away towards more affordable products. The market also…

Retail volume sales of coffee in Lithuania declined in 2023 for the third consecutive year. While the landscape is saturated, economic uncertainty hindered volume sales, as rising price sensitivity and ongoing inflation reduced disposable incomes. In…

In 2023, coffee achieved very strong off-trade value growth. Whilst retail volume growth was moderate, significant unit price increases across all coffee categories, including the largest ones such as standard fresh ground coffee, led to a…

Hot drinks in Estonia increased in both value and volume terms in 2023 due to the growing emphasis on healthy living, which has encouraged consumers to opt for beverages that not only satisfy their thirst but also contribute to their overall…

Retail volume sales of hot drinks in Latvia saw a static performance in 2023, as the high rate of inflation weighed heavily on consumer spending. With consumers forced to spend more on utilities and food, they shifted away from premium brands and…

In 2023, while retail value growth was positive in hot drinks, boosted by high price points, retail volume declined for the third consecutive year. Economic uncertainty continued to shape purchasing decisions, with consumers readjusting their budgets…

Hot drinks achieved minimal retail volume growth and strong retail value growth in 2023 amidst rising unit prices and the broader impact of inflation. The recovery of hot drinks sales through foodservice continued during the year and the channel…

Other plant-based hot drinks showed the fastest volume and value growth in other drinks in 2023. As more Estonians adopt vegetarian, vegan, or plant-based diets due to environmental concerns or dairy allergy/intolerance, the demand for alternatives…

Other hot drinks retained a relatively niche presence in Lativa in 2023, with little interest on the part of consumers and retailers. Other plant-based hot drinks led retail volume and value sales, due to the popularity of barley-and chicory-based…

Other hot drinks registered positive retail volume growth in 2023, unlike tea and coffee. After a small decline in 2020, demand for other hot drinks has recovered, with positive volume growth recorded from 2021. Children returning to school has…

Other hot drinks recovered moderately in retail volume terms in 2023, having seen a continuous decline in the COVID-19 crisis and during the immediate post-pandemic period. The impact of the high rate of inflation was felt on the unit prices in the…

Black tea recorded the fastest value growth in 2023 due to the rising popularity of premium and speciality black teas. Consumers are willing to pay a premium for high-quality black teas sourced from specific regions, with unique flavours, such as the…

Tea edged towards stagnation in retail volume terms in 2023, in contrast to its more dynamic performance earlier in the review period. In general, Latvia is a coffee consuming country, meaning that tea has more of a niche presence. In addition, there…

Lithuania has a solid coffee-drinking culture, and its popularity far outweighs tea drinking. Traditionally, tea was normally consumed as an addition to the daily intake of hot drinks. However, its popularity waned across the review period as the…

In 2023, tea repeated its success from the previous year by yet again achieving a strong retail value growth rate and continuing on a path towards full recovery in retail volume terms following the negative impact of the COVID-19 crisis. Significant…

Despite the prevailing inflation in Romania, bags and luggage continued to exhibit growth. Average unit prices surged in 2022 and 2023 due to increased costs associated with energy, raw materials, and other factors. This led many Romanians to opt for…

Bottled water is generally seen as a more “premium” niche in Lithuania, due to the high quality of the tap water in the country. This means that consumers do not typically add bottled water to their shopping lists as a necessity and, in this sense,…

Tap water in most parts of the country remains suitable for human consumption and in certain areas is of excellent quality despite ongoing concerns about overall environmental pollution. However, as health and wellness trends continue to impact soft…

Carbonates continues to face challenges, due to the majority of drinks in the category deemed to be unhealthy due to their high sugar content. Added to which, the current economic conditions mean consumers are prioritising essentials over…

In 2023, carbonates achieved minimal off-trade volume growth as consumer demand was significantly impacted by the negative image that carbonates has gained amongst increasingly health conscious consumers, largely, though not entirely, due to the…

Concentrates is an uninteresting category in Lithuania, with low interest and few developments. One key reason for this is the unhealthy image of concentrates, due to the high sugar content in such products.

Concentrates registered decline in off-trade volume terms in 2023 as liquid concentrates sales fell due to diminishing consumer demand. At the same time, thanks to the significant unit price increases in the context of high rates of general…

Energy drinks is the other robustly performing category, along with sports drinks. Whilst energy drinks took a hit during the pandemic lockdowns, off-trade volume growth has followed a most positive trajectory over the review period and this…

In 2023, energy drinks saw off-trade volume sales rise as demand was driven by the younger generation of consumers, mostly Millennials and Gen Z, whose demand increased as they resumed partying and socialising after the disruption resulting from the…

Amid challenging economic conditions, local consumers have shown a rising interest in investing in fine jewellery, particularly gold. Fine jewellery has also gained popularity as a high-value gift item. In addition, the lifting of pandemic…

Juice sales continue to decline in Lithuania, due to such products losing their perceived “healthy” image due to high sugar content, along with high prices placing downwards pressure on demand. Traditionally, juice had been perceived as a “healthier”…

Juice achieved stable off-trade volume growth in 2023 with sales supported by the continued consumer demand for the largest product categories, especially nectars and juice drinks. In addition, the continued shift from carbonates to juice is having a…

Even though inflation remained high in Romania in 2023, personal accessories saw growth in both current value and volume terms. Romanians are increasingly preoccupied with improving their personal image, and despite declining purchasing power, they…

Whilst RTD coffee sees positive off-trade volume growth, the category is mostly uninteresting for consumers in Lithuania, with overall volumes sold remaining minimal. RTD coffee faces direct and strong competition from hot brewed coffee and energy…

RTD coffee continued to rebound from the impact of the COVID-19 crisis in 2023, as consumers returned to their familiar hectic lifestyles in the absence of movement restrictions and once again demanded soft drinks for on-the-go consumption. RTD…

RTD tea remains in a slump in 2023, despite seeing some upticks to the category’s performance in earlier years due to the novelty value. Overall, however, RTD tea is not a traditional or popular beverage in Lithuania, carries no clear benefit…

The health and wellness trend, which is exerting a strong influence across soft drinks, has had a particularly marked impact on the development of the RTD tea category. With increasing awareness of the rise in the prevalence of obesity and other…

Sales in soft drinks remain in a decline in Lithuania in 2023, albeit showing a less steep slump in off-trade volume terms than seen in 2022. This is attributed to ongoing economic challenges, starting with the era of the pandemic, following into the…

Soft drinks achieved minimal off-trade volume growth and double-digit off-trade value growth in North Macedonia in 2023 amidst rising unit prices and the broader impact of inflation. The on-trade recovery of soft drinks continued during the year,…

Sports drinks is seeing robust off-trade volume growth, bucking the general trends which are suppressing sales in soft drinks as a whole. Sales in sports drinks are supported by consumers returning to gymnasiums and other sporting activities in the…

In 2023, the sports drinks category saw off-trade volume growth as demand was driven by the health and wellness trend and the growing gym culture, which has continued to accelerate, despite the demographic problems facing the country. The health and…

The challenging economic climate has significantly impacted consumer behaviour in Romania when it comes to watches. Some consumers, whose budgets have been constrained by inflation, have opted for more affordable products or delayed their purchases,…

Following interruption during COVID-19-related restrictions and widespread homeschooling, the accelerating ‘back to work’ trend has led to both volume and current value sales growth of writing instruments in Romania in 2023.

The lifting of travel restrictions post-COVID-19 has had a positive impact on luggage, backpacks, business bags and handbags with these subcategories, particularly luggage, registering growth in both current retail value terms, albeit at a slower…

The affordability of lab-grown diamonds is a significant factor in their growing popularity in Poland. With prices up to 85% lower than natural diamonds of identical carat weight and grade, lab-grown diamonds present a cost-effective alternative for…

In 2023, inflation had a significant impact on personal accessories in Poland. The cost of living and average unit prices of essential items increased, leading Polish consumers to gravitate towards more affordable and durable products, especially in…

For traditional and high-end watches, brick-and-mortar retailers remain the preferred distribution channel in Poland, with jewellery and watch specialists accounting for the large majority of sales in 2023. The tactile experience of seeing and…

There was modest volume growth in 2022, partly due to an influx of Ukrainian refugees fleeing the Russian invasion and partly as a result of a post-pandemic return to regular school and work patterns. However writing instruments saw a decline in…

The Czech Republic has a high acceptance of cannabis due to the long-standing tradition of cannabis cultivation and usage in the country. Cannabis legislation has been an issue since the 1990s, when there was an early attempt at legalisation. As it…

Technological advances in 2024 will continue to reshape consumer behaviour. This annual report explores the top five digital shopper trends that will redefine commerce the most in the year ahead. Some of the trends included in this report’s edition…

Kosovo has suffered from significant political instability, whilst corruption is pervasive. Nevertheless, European Union (EU) accession is on the cards and the economy is expected to outperform peers in the near term. The consumer market remains…

Industry stakeholders are increasingly debating between sustainability and technology leadership strategies in the appliances market. As margins continue to shrink, leadership in either category is critical to maintain continued competitiveness. In…

Although Moldova is ‘moderately free’ for economic freedom, Russia’s influence operations may spur instability. Economic growth to rebound over the near term, outperforming regional average. The population is shrinking and ageing rapidly, which…

In Mozambique, ongoing conflict and corruption exacerbate economic challenges. The economy is hindered by high unemployment and reliance on agriculture. The young and growing population remains impoverished, facing healthcare and educational hurdles,…

Improving state finances and effective control of corruption are adding to Latvia’s economic freedom, but relations with neighbours continue to be tense. Economic momentum is moderating, owing to high inflation that is hitting consumption, but the…