Private label soft drinks have performed well in east and west Europe in 2015, according to a report by Canadean.

Titled “Quarterly Beverage Tracker Second Quarter 2016: West Europe; Comprehensive Quarterly Analysis of Year on Year Performance for All Commercial Beverages”, the report provides information on the performance of the beverage market in east and west Europe.

Private label soft drinks have witnessed periods of growth and decline in the region due to economic uncertainty. In western Europe, the segment experienced growth after two years of decline, but still underperforms when compared to branded products.

"The major category that saw growth in both the regions was packaged water."

Growth in the segment was driven by the entry of premium quality and value-added own-label products, states Emma Wright, analyst for Canadean. The iced / ready-to-drink coffee category witnessed the highest increase, of 8%.

In eastern Europe, the private label segment suffered a decline due to rising disposable income of consumers and the availability of branded items on discount. Enhanced water witnessed the strongest growth at 23%, mainly due to its affordability over branded products.

The major category that saw growth in both the regions was packaged water. Growth of carbonates, however, declined in western Europe due to decline in consumption, and price promotion strategies adopted by major brands. In eastern Europe, carbonates registered an increase of 2%.

The report also discusses the major hurdles for growth of the private label segment in 2016 in both east and west Europe. The segment is expected to be affected by aggressive price promotions by branded products. It is, however, expected to overtake branded products in countries such as Germany and UK.