Fruit syrups in the price storm

This article is available for reading in Trade magazin 2024/12-01

The number of people who prefer high fruit content and practical packaging is growing year by year. Discounters have strengthened their distribution of branded and private label products.

The introduction of DRS in the syrup market has led to a smaller and shorter-lasting reduction in sales than expected

More products to choose from

Zsuzsanna Papp
marketing manager
Szikrai Borászat

At Szikrai Borászati Kft. both volume and value sales grew in the first eight months of 2024.

“However, September and October produced below-base sales, so it isn’t possible to forecast exactly how the year will end”,

says marketing manager Zsuzsanna Papp.

The company has recently added new fruit syrups to its PET bottle range, composition-wise trying to come out with products that don’t significantly exceed the HUF 1,000 price level.

Emese Szász-Bognár
communications and media manager
SIÓ-Eckes

SIÓ-Eckes Kft.’s Yo fruit syrup brand offers natural, fruit-based syrups in a variety of flavours for the whole family.

“With the Yo brand it is important for us to support calorie-conscious consumers, so all products are made without added sugar. In addition to the classic favourites Raspberry, Elder, Orange and Lemon-Lime, this year’s new product is Pink Paradise, a combination of passion fruit and dragon fruit”,

says communications and media manager Emese Szász-Bognár.

Transforming product structure

Gramex 2000 Kft. exclusively manufactures private label fruit syrups. The company’s previous flagship, the 2-litre flavoured syrup category has lost market share due to changes in the public health product tax (NETA), however sales of the 50% fruit syrups introduced in 2023 stabilised by 2024. “Owing to the price increases, it isn’t particularly challenging to achieve sales growth at the moment. We have already changed our product structure in the category due to NETA, so the only way to reduce costs is to increase efficiency, for example by producing larger batches”, points out sales director Márta Molnár.

Zoltán Danielisz
sales director
Yuva

Z. Zoltán Danielisz, sales director of Yuva Kft.:

“Besides the summer peak season, the last months of the year are crucial for us. Fruit syrup consumption is going through a renaissance, so I am confident that the growth momentum will continue unabated in the coming period”.

Following the increase in consumer demand, the company has decided to expand their production capacity. Their product selection is marketed in 500ml containers with a dilution ratio of 1:23, which can be used to make 12 litres of 60% fruit drink. This year’s new flavour is FruttaMax Cola light.

Instant pleasure: the new era of drink powders

Today’s rapid pace of life and demand for convenience have made instant drink powders a popular, quick and easy solution, both at home and in the office. As health consciousness is strengthening, there is growing interest in added functional ingredients, e.g. vitamin-enriched, protein-based or sugar-free versions. The instant drink powders market has been heavily influenced by recent commodity price fluctuations, for example cocoa powder prices have soared by 110-150% and instant coffee extract costs almost 35% more. Cocoa drinks in particular have been negatively affected by the significant NETA increase in 2022. As a result, demand for cocoa drink mixes dropped, because the tax burden has been passed on to customers in product prices.

A sweet treat

Sales of TUTTI Kft. have been developing nicely, growing despite the declining consumption.

Andrea Prohászka
managing director
TUTTI

Rising ingredient prices make it increasingly challenging for beverage powders to remain competitive and meet consumer demand

Szobi Italgyártó Kft. entered this category in 2024 year and the start was just as they had expected. This year they launched four flavours and the company is currently developing two new flavours. Soon they will be launching a new instant drink powder range, which will be available in a different packaging, not in sachets. The leading flavours of the fruit syrup market, such as raspberry, strawberry and citrus are also popular in the instant drink powder segment, according to Zsuzsanna Papp. //