Greece: Soft Drinks Market Size and Trends in 2018-2022

In the 2018-2022 period, the Greek soft drinks market saw the emergence of health-conscious consumption, sugar reduction efforts, and a growing preference for local and low-alcohol beverages. Despite external pressures, including inflation, COVID-19, and rising obesity rates, the industry adapted by prioritizing consumer demands and exploring new avenues for growth.

Greek Soft Drinks Market Size and Structure in 2018-2022

The soft drinks market in Greece increased at a compound annual growth rate (CAGR) of 0.50%. As a result, it reached 1.16 billion EUR in 2022.

The consumption per capita of soft drinks in Greece showed an overall increase in the period 2018-2022. Until 2022, it grew at a CAGR of 0.96% to reach 111.676 EUR per capita.

Broken down by product types, the soft drinks market in Greece was dominated by carbonated soft drinks. In 2022, the product type accounted for 81.5% of the total value. It was followed by energy and sports drinks and non-carbonated soft drinks with shares of 15.6% and 2.9%, respectively.

Broken down by retail distribution channels, the soft drinks market in Greece was led supermarkets and hypermarkets, which recorded a 42.3% share of the total volume in 2022. That left 57.7% of the market volume to all other distribution channels.

Imports and Exports of Soft Drinks in Greece

The imports of soft drinks to Greece in the period 2018-2022 grew at a CAGR of 18.30% to reach 137.50 million EUR.

The exports of soft drinks from Greece in the period 2018-2022 grew at a CAGR of 23.60% to reach 80.61 million EUR.

As a result, the trade balance of soft drinks in Greece was negative and recorded an overall increase during the analyzed period. Until 2022, the trade balance increased at a CAGR of 12.39% to reach -56.90 million EUR.

Key Trends in the Greek Soft Drinks Market

Health and Wellness as a Driving Force

Health-consciousness has become more prominent on the Greek soft drinks market. Consumers increasingly seek beverages that offer functional benefits beyond hydration, including contributions to digestion, beauty, and overall well-being.

Fermented drinks, teas, and fortified beverages saw a surge in popularity, reflecting a broader interest in products that promote digestive health. Beverages featuring probiotics or apple cider vinegar gained traction due to their perceived ability to improve digestion and reduce inflammation.

The trend extended to drinks that support anti-aging and beauty, with ingredients like aloe vera, matcha, and superfoods becoming staples in premium soft drinks. Additionally, the use of functional ingredients such as ginger, known for its digestive and anti-inflammatory properties, gained prominence across various beverage categories, including enhanced waters and functional drinks.

Flavor Innovation: The Quest for Differentiation

Greek consumers increasingly demand diverse and unique flavors, prompting soft drink companies to experiment with unconventional combinations. The industry embraced the use of spicy ingredients like chili, ginger, cinnamon, and turmeric, creating exciting sensory experiences while delivering health benefits. Sweet-and-savory pairings also gained momentum, adding depth to traditional beverage profiles.

Premium segments, such as craft ready-to-drink beverages, kombucha, and flavored waters, experienced notable growth. These products stood out through their distinct flavors and functional benefits, often featuring fruits such as peach, lime, pink grapefruit, and pomegranate. The focus on flavor innovation reflects the industry’s need to cater to evolving palates and differentiate from cheaper private-label competitors.

The Push for Sugar Reduction

One of the most significant trends on the global soft drinks market is the reduction of sugar in beverages. In Greece, this movement aligns with broader European efforts to address the health impacts of excessive sugar consumption. Between 2019 and 2022, the European soft drinks industry achieved a 7.6% reduction in added sugars, with further commitments to cut an additional 10% by 2025.

Low- and no-calorie sweeteners became instrumental in achieving these reductions, providing consumers with healthier options without compromising taste. These initiatives were critical in combating obesity, a pressing concern in Greece, where childhood obesity rates are among the highest in Europe. The Association of Greek Soft Drinks Industries (SEVA) has been proactive in this regard, launching initiatives to reduce sugar content and promote healthier consumption habits.

Addressing Obesity Through Reformulation

Greece’s high obesity rates, particularly among children, underscore the need for systemic change. Sugary drinks are often cited as major contributors to obesity, leading to reformulation efforts within the industry. Alongside sugar reduction, companies adopted strategies such as smaller packaging and clearer nutritional labeling to promote moderation.

The Greek Government, in collaboration with UNICEF, launched a National Action Plan in 2023 to tackle childhood obesity. This comprehensive initiative highlights the interconnectedness of industry, government, and public health efforts in addressing this critical issue.

The Impact of COVID-19

The COVID-19 pandemic had a profound impact on the Greek soft drinks market. Factory closures and supply chain disruptions led to a 22.5% decline in production volume in 2020 compared to 2019. On-trade sales suffered significantly as restaurants and cafes shut down during lockdowns. However, a temporary surge in sales was observed due to stockpiling by consumers.

As restrictions eased, the market rebounded, particularly in the HoReCa (hotels, restaurants, and cafes) sector. Social activities and dine-in experiences resumed, driving an uptick in on-trade consumption by 2022. Despite this recovery, economic challenges, such as inflation, continued to influence consumer behavior.

Inflation and Its Effects on Consumer Behavior

Surging inflation during 2021 and 2022 eroded disposable incomes, making consumers more price-conscious. The Greek government intervened by freezing prices on select beverages to alleviate the financial burden on households. In response, companies introduced smaller pack sizes and affordable multipacks to maintain affordability and profitability.

These strategies highlight the industry’s adaptability in the face of economic adversity. The focus on cost-effective offerings ensured that soft drinks remained accessible to a broad consumer base.

The Rise of Local Beverages

A notable trend in the Greek soft drinks market is the renewed interest in locally produced beverages. Greek soft drinks, often crafted using traditional recipes and local ingredients, resonated with consumers seeking authenticity and connection to cultural heritage.

These beverages, made with fresh fruits and natural ingredients, offered a unique taste experience rooted in Greek terroir. Small, family-run businesses played a pivotal role in this segment, carving out a niche market despite the dominance of international brands.

Low- and No-Alcohol Beverages: A Growing Segment

As health-consciousness and regulatory changes drive global reductions in alcohol consumption, Greece experienced higher demand for low- and no-alcohol alternatives. The trend is evident in the growing popularity of soft drinks as substitutes for alcoholic beverages in social settings.

This shift not only expanded the soft drinks market in Greece but also spurred innovation. By aligning product offerings with consumer preferences for healthier, alcohol-free options, the industry positioned itself for continued growth.

Forecast for the Greek Soft Drinks Market

Under the base forecast scenario, the Greek economy is expected to show steady growth in the medium term. As a result, the Greek soft drinks market is expected to reach 1.39 billion EUR by 2028.

If the Greek economy does not reach expectations, it will show declining rates in the medium term. In this case, the soft drinks market in Greece will fall to 969.58 million EUR by 2028.

If the Greek economy exceeds expectations, the soft drinks market in Greece is forecast to reach 1.56 billion EUR by 2028.